Japanese electrical major Toshiba Corporation has acquired a controlling equity stake in UEM India Pvt Ltd, which provides turnkey services in the water and waste water collection, treatment and disposal, from private equity firm India Value Fund Advisors (IVFA) and the founders of the firm, according to a statement.
Toshiba had acquired a 26 per cent equity stake in UEM India earlier this year for $20 million. Now, the Japanese firm has decided to pick additional 54 per cent stake, which would take its total shareholding in UEM to 80 per cent. Financial details of the latest transaction remain undisclosed but given the previous deal it would be north of $40 million.
IVFA, which had picked a controlling stake in UEM a few years ago, and founding member Krishan Kshetry continues to remain a minority shareholder in UEM.
The current management team at UEM would continue to run the operations of the company.
The new UEM board will be expanded and include six directors from Toshiba. While Koichi Matsui would be chairperson and managing director from Toshiba, founder Krishan Kshetry and Satish Chander from IVFA will also be on the board.
UEM Group—founded in 1973 by Krishan Kshetry—provides turnkey services in water and waste water collection, treatment and disposal. The company has annual revenue of $70 million or over Rs 400 crore and has so far executed over 350 projects in 30 nations, including Kenya, Taiwan, Thailand, Nepal, Indonesia, Malaysia and Sri Lanka.
It has over 750 employees, with the core design team based in Noida. It has delivered projects in sectors such as oil and gas, power, breweries and tanneries, with clients that include ONGC, IOC, NTPC, Coca-Cola, P&G, Bristol-Myers Squibb and government bodies. The company has also been involved with projects funded by multilateral bodies, like the World Bank and the Asian Development Bank.
“Water treatment is a strategic growth area for Toshiba and UEM is a respected player in the water treatment business with vast experience in delivering complex, turnkey projects around the world,” said Hirofumi Yoshino, vice president-Water & Environmental Systems Division of Toshiba Corporation.
Toshiba is a world’s leading diversified manufacturer, solutions provider and marketer of electronic and electrical products and systems. The company was founded in 1875 and has 590 firms under its fold with 206,000 employees globally and annual sales of over $60 billion.
It is also Japan’s leading manufacturer of electrical system for water supply and sewerage facilities. The company has also expanded the business into overseas markets, including China and Indonesia.
Toshiba Corp operates through its arm Toshiba India Pvt Ltd in India. Toshiba India has business scope in laptops, consumer goods, power plants, semiconductors, industrial products, etc.
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