Water Resources Group (WRG) has entered into a joint venture agreement with Mandala Water to use all of WRG's products and water technologies in South Asia.
WRG owns a 49% stake in the venture, with Mandala Water owning 51%. Through the collaboration, WRG will enter into the lucrative desalination market in Bangladesh, India, Pakistan, Sri Lanka.
The operation will will be based in India and it will allow WRG to focus on industrial, as well as municipal applications.
WRG CEO Brian Harcourt said the South Asian segment is expected to grow significantly in the next ten years, particularly in India. "We have been in discussions with Mandala Capital for over one year in preparation to enter into this multi-hundred million-dollar market for desalination," he said.
Mandala Water principal Mandala Capital CEO Uday Garg added: "We invested in WRG at the time of its IPO and have taken the view that the application of its technologies in South Asia is going to enhance the value of the company."
The collaboration will also seek to develop new markets in seed and food preservation, as well as food logistics, where it will use WRG's Plasma Chemical Reactor, a device that produces low-cost ozone from ambient air.
In the next decade, the demand for water in India is expected to grow by 20%; this is fuelled largely by industrial requirements, which are expected to double, domestic requirements are expected to grow by 40% and irrigation requirements by 14%.
Australia-based WRG is a provider of advanced, economical, chemical-free, community-based water desalination systems.
Mandala Water is a wholly-owned subsidiary of Mandala Capital AG Fund.
