Welspun Enterprises Limited (WEL), the infrastructure development arm of Welspun World, has acquired a 50.10% stake in Michigan Engineers Private Limited (MEPL), an EPC company in the urban water infrastructure segment, for Rs 137.07 crore. With the completion of the transaction, MEPL is now a subsidiary of WEL.
The acquisition aligns with WEL’s strategy to expand the water infrastructure business and marks the company’s entry into a high margin and high growth water and tunnelling solutions segment, further strengthening its overall business portfolio.
“The strategic investment will enable WEL to enter the urban infrastructure space and provide water and tunnelling solutions, which complements its existing water and road businesses,” said WEL in a statement. MEPL’s experience and capabilities will now allow WEL to undertake projects in the niche and promising areas of micro tunnelling, segment tunnelling, sewer network rehabilitation and other trenchless technologies across India, leading to diversification of its project portfolio and service offerings.
Over the last few years, WEL has already established itself in the water and wastewater segment in India and has built a formidable order book of over Rs. 6,000 crore for the segment.
The company is currently executing a few prestigious projects including the Rural Water Supply Project under Government of India’s Jal Jeevan Mission in Uttar Pradesh covering 2,500 villages and the 418 MLD Waste Water Treatment Facility (WwTF) project at Dharavi, Mumbai.
The Dharavi WWTF will be India’s first multi-tier wastewater treatment facility, with state-of-the-art technology. Embracing digitalization and automation in its processes, the company has deployed advanced technologies such as 5D BIM at the Dharavi Project for better project and cost control.
“MEPL is a strong, strategic fit for accelerating the growth of our water business and we are certain that the combined strengths of the two companies will drive significant value for both our shareholders and customers,” said Sandeep Garg, Managing Director, Welspun Enterprises Limited.
The companies expect favorable sector tailwinds through government’s thrust on initiatives such as Atal Mission for Rejuvenation and Urban Transformation, National Mission for Clean Ganga, Jal Jeevan Mission and Community Drinking Water Schemes imbibes confidence and shall contribute to the growth of the water and wastewater market.
“Our strategic partnership with Welspun Enterprises is a unique convergence of a financially strong infrastructure developer and a niche EPC player in the water and tunnelling space,” said Saurin Patel, Managing Director, Michigan Engineers Private Limited.