5 Best water treatment chemicals manufacturers in India

Water Treatment Chemicals Manufacturers In India

5 Best Water Treatment Chemicals Manufacturers In India

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The global chemical industry is a cornerstone of modern economies, encompassing diverse segments such as bulk chemicals, specialty chemicals, agrochemicals, petrochemicals, and polymers. With an estimated valuation of $4.1 trillion in 2022, the global chemicals industry is expected to grow at a CAGR of 4-5% to reach $5 trillion by 2030 driven by advancements in technology, sustainability initiatives, and increased demand for innovative solutions in agriculture, healthcare, and construction.

Asia-Pacific dominates the global chemical industry, with China leading in production and consumption. However, countries like India and Vietnam are emerging as strong contenders due to the “China+1” strategy adopted by global players.

The Indian chemical industry was valued at $220 billion in 2022 and is projected to reach $300 billion by 2025 and $1 trillion by 2040 driven by the domestic demand and rising exports due to the “China+” strategy.

Water Treatment Chemicals

The water and wastewater solutions industry is experiencing rapid growth globally, driven by increasing water scarcity, stringent environmental regulations, and rising demand for sustainable solutions. The global water treatment market is estimated to grow at a robust pace, reaching a valuation of $345 billion by 2030, with a compound annual growth rate (CAGR) exceeding 6% from 2023.

In India, the market for water and wastewater treatment is expanding at an impressive CAGR of over 10% during the same period, driven by government initiatives such as the Namami Gange program, the Smart Cities Mission, and increasing industrialization. Key growth areas include desalination, wastewater recycling, and zero-liquid discharge (ZLD) systems, with sectors like municipal water, oil and gas, pharmaceuticals, and manufacturing emerging as significant contributors to demand.

Companies like VA Tech Wabag, Thermax, and Ion Exchange are leading the market globally and in India with innovative solutions such as tertiary treatment for reuse, biogas recovery from sludge, and ultra-pure water systems for industrial applications. The rising focus on circular economy practices, resource recovery, and green energy integration further enhances the appeal of the industry. Globally, India is becoming a hub for water solutions innovation, supported by its skilled talent pool and increasing infrastructure investment.

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Water Treatment Chemicals manufacturers

As discussed earlier, we have many small and medium Water treatment chemicals manufacturers operating in India. The list of Water treatment chemicals manufacturers is given below. However, this article aims to understand the best Water treatment chemicals manufacturers in India to keep an eye both on the consumption of chemicals used in water treatment or investing in these Water treatment chemicals manufacturers.

Chemicals used in water treatment

The chemicals used in water treatment include coagulants and flocculants to remove suspended particles, biocides, and disinfectants to eliminate harmful microorganisms, and corrosion and scale inhibitors to protect equipment. Advanced solutions such as ion exchange resins and membrane cleaning chemicals are also employed in processes like desalination, wastewater recycling, and zero-liquid discharge systems. Below are a few chemicals used in water treatment.

  • Ion Exchange Resins: Used for softening, demineralization, and removal of contaminants from water.
  • Specialty Chemicals: Includes coagulants, flocculants, and biocides for treating industrial and municipal water.
  • Desalination Chemicals: Specific chemicals for reverse osmosis and thermal desalination processes.
  • Cleaning and Hygiene Chemicals: Supporting the removal of impurities and maintaining system cleanliness.

Top 5 Best Water Treatment Chemicals Manufacturers in India

VA Tech Wabag Limited

  1. Consolidated revenue for FY24 was ₹2,856 crore, with EBITDA improving to ₹377 crore (13.2% margin)​​.
  2. Net profit increased to ₹246 crore in FY24, reflecting steady profitability​.
  3. The company continues to maintain a net cash-positive position for the fourth consecutive year, driven by effective debt management​.

Water Treatment Chemicals Segment:

  1. VA Tech Wabag operates in key water segments, including desalination, wastewater treatment, water recycling, and zero-liquid discharge (ZLD).
  2. Major contributions to revenue come from EPC (Engineering, Procurement, and Construction) and O&M (Operation and Maintenance) contracts​​.
  3. Significant projects include the ₹4,400 crore 400 MLD desalination plant in Chennai and strategic wins in Bangladesh and Libya​​.

Market Share and Competitive Position:

  1. Ranked as the third-largest private water operator globally and the fifth-largest desalination player by GWI.
  2. Competitive advantages include over 125 IP rights, a strong international presence, and expertise in technology-driven solutions​​.

Strategic Priorities:

  1. Scaling operations in high-growth areas like desalination, water reuse, and ZLD technologies.
  2. Focus on industrial segments such as green hydrogen and semiconductors, leveraging expertise in ultra-pure water solutions.
  3. Strengthening annuity-based O&M revenue to enhance profitability​​.
  4. Expansion in green hydrogen and semiconductor water treatment capabilities.
  5. Partnership with Peak Sustainability Ventures to establish 100 biogas-to-CBG plants, targeting ₹200 million in business​.
  6. Strategic focus on increasing O&M revenue to 20% of total revenue within the next few years​.

Valuation and Recent Projects:

  1. The company’s valuation is supported by its asset-light model, strong order book (~₹11,448 crores), and a robust pipeline of marquee projects​.
  2. Recent projects include:
    • ₹4,400 crore Chennai desalination project.
    • ZLD plant for NMDC Steel.
    • Water treatment plants in Bangladesh and Libya​​.
  3. Market cap: ₹ 9,738 Cr, Stock PR: 37.4, EPS ₹42, looking cheaper.

Ion Exchange (India) Limited

Revenue, Profit, and Cash Flow Trend):

  1. Ion Exchange has shown consistent revenue growth, with consolidated operating income reaching ₹23,479 million in FY24, a year-on-year increase​.
  2. Net profit for FY24 stood at ₹1,954 million, driven by strong performance in engineering and chemicals segments​.
  3. Operating EBITDA margins have remained stable at ~11%, showcasing strong operational efficiency​.

Water Treatment Chemicals Segment Revenue:

  1. Engineering accounts for 60% of total revenue, focusing on water and wastewater treatment, seawater desalination, and zero liquid discharge plants​.
  2. Chemicals contribute 29%, including specialty chemicals and resins for water and wastewater treatment​.
  3. The consumer products segment (11%) provides drinking water solutions and clean environment products​.
  4. Expansion into international markets, with a presence in over 50 countries.
  5. Significant orders from marquee clients such as NTPC, Reliance, and Tata Group for engineering projects​.

Market Share and Competitive Position:

  1. Ion Exchange is a leader in the Indian water treatment space, leveraging its comprehensive product range and engineering expertise.
  2. Competitive advantages include its patented technologies (50+ patents) and a strong international presence​.
  3. Challenges include competition from global players in specialized solutions and maintaining margins in consumer products​​.

Strategic Priorities:

  1. Focus on expanding resin manufacturing capacity, with the Roha plant expected to commence operations in FY25-26​.
  2. Strengthening global footprints through partnerships and localized manufacturing​.
  3. Increased emphasis on innovation and R&D for sustainable solutions​​.

Valuation and Recent Projects:

  1. Valuation is supported by strong fundamentals and a robust order book ₹8,695 crore​.
  2. Recent projects include high-value engineering contracts and turnkey water treatment solutions for municipalities​.
  3. Roha plant expansion for resin manufacturing is in an advanced stage and is expected to commence commercial production in Q1 FY25-26​.
  4. Market cap: ₹ 9,679 Cr., Stock PE: 45, EPS: ₹ 14.7, ROE: 21%, ROCE: 27.5%

Rossari Biotech Limited

  1. Revenue for FY24 increased by 10.5% to ₹18,305.58 million, demonstrating consistent growth​​.
  2. EBITDA grew by 12% to ₹2,497.55 million, with an EBITDA margin of 13.6%, reflecting a stable and profitable operational model​.
  3. PAT for FY24 stood at ₹1,306.89 million, up from ₹1,072.57 million in FY23, showcasing solid profitability​.

Water Treatment Chemicals Segment Revenue:

  1. Rossari operates across three major segments:
    • HPPC (Home, Personal Care & Performance Chemicals): 75% of revenue.
    • Textile Specialty Chemicals (TSC): 19%.
    • Animal Health & Nutrition (AHN): 6%.
  2. While specific details for water solutions are not highlighted, the company’s focus on performance chemicals includes applications in water treatment​.
  3. Growth is primarily driven by:
    • Expansion in the HPPC segment, supported by specialty surfactants, phenoxy products, and performance chemicals.
    • Increased international presence, with exports contributing ~24% of revenue​​.
    • Acquisitions like Unitop and Tristar enhance capabilities in ethoxylation and distillation processes​.

Market Share and Competitive Position:

  1. Rossari is a leader in specialty chemicals in India, with an extensive product portfolio of over 4,282 products​.
  2. The company leverages strategic acquisitions and a wide distribution network to maintain competitive advantages​.
  3. It faces challenges such as rising input costs and international competition but offsets them through innovation and efficiency improvements​.

Strategic Priorities:

  1. Rossari plans to invest ₹1,780 million in CAPEX for capacity expansions and new product development, including molecules for the oil and gas industry​.
  2. Focus areas include biosurfactants, backward integration, and sustainable manufacturing processes to enhance profitability​​.
  3. Strengthening its global footprint by entering new markets like Bangladesh, Turkey, and Latin America​.

Valuation and Recent Projects:

  1. The valuation is supported by consistent growth metrics and a robust CAPEX strategy.
  2. Recent projects include capacity expansions at Unitop and Tristar, focusing on ethoxylation and biosurfactants​.
  3. Rossari has allocated ₹1,780 million for capacity expansions, including:
    • Doubling ethoxylation capacity at Unitop.
    • New facility developments for oil and gas-related products.
    • Target completion by FY25
  4. Market Cap: ₹ 4,359 Cr., Stock PE: 31.4 ROE: 13.2%, ROCE: 18.1%, EPS: ₹ 25.1

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Thermax Limited

  1. Consolidated revenue for FY24 grew by 15% to ₹9,323 crore, compared to ₹8,090 crore in FY23​​.
  2. Profit After Tax (PAT) for FY24 rose by 43% to ₹643 crore, demonstrating robust profitability growth​​.
  3. EBITDA margins have been stable, and the order book at ₹9,355 crore reflects consistent business momentum​.

Water Treatment Chemicals Segment Revenue:

  1. The Water and Waste Solutions segment includes wastewater treatment, recycling, desalination, and zero liquid discharge systems.
  2. The segment forms a part of the Industrial Products and Green Solutions divisions of the total revenue​​.
  3. The company is focusing on international markets with strong traction in regions like Africa and Southeast Asia​.

Market Share and Competitive Position:

  1. Thermax is a leading player in the energy and environment space, leveraging its expertise in water treatment solutions.
  2. Competitive advantages include advanced technology, sustainability-driven solutions, and a strong brand presence in over 30 countries​​.

Strategic Priorities:

  1. Scaling up the Green Solutions business with a focus on bio-CNG, zero liquid discharge systems, and renewable energy​​.
  2. Strengthening its portfolio of water treatment chemicals and resins.
  3. Continued expansion into international markets and investments in R&D for energy transition technologies​​.

Valuation and Recent Projects:

  1. Valuation is supported by strong fundamentals, consistent revenue growth, and a diversified order book.
  2. Recent projects include:
    • A 750 KLD zero liquid discharge plant for a steel major​.
    • A comprehensive water management facility for a leading oil refinery, including WTP, STP, and ZLD solutions​.
  3. Thermax is investing in capacity expansion for water treatment solutions and chemicals in its facilities in India and abroad.
  4. Key projects include the establishment of a new chemical facility in Indonesia for water treatment and related products, with commissioning expected by FY26.
  5. Market cap: ₹ 53,768 Cr. Stock Pe: 85, ROE: 14.2%, ROCE: 16.9% and EPS: ₹ 62.2. Little more expensive than its peers.

Fineotex Chemical Limited

  1. The company has shown consistent revenue and profit growth, supported by diversification into cleaning, hygiene, and specialty chemicals.
  2. Significant capacity increases (e.g., Ambernath facility expansion) have driven production efficiency​​.
  3. Improved ROCE and shareholder value through buybacks are the most important​.
  4. This company is one of my favorite water treatment chemicals manufacturers in India.

Water Treatment Chemicals Segment Revenue:

  1. While Fineotex’s documents emphasize cleaning, hygiene, and textile specialty chemicals, The company’s diversification into eco-friendly and sustainable solutions hints at potential alignment with water treatment needs​​.
  2. Expansion into new segments like cleaning and hygiene chemicals post-pandemic.
  3. International collaborations, including with Biotex Malaysia, to develop and distribute eco-friendly solutions​.

Market Share and Competitive Position:

  1. Fineotex holds a competitive edge through technical expertise and a diversified portfolio of 470+ product categories.
  2. Collaborations with organizations like HealthGuard and Eurodye-CTC enhance its global market presence​​.

Strategic Priorities:

  1. Increasing production capacity to meet rising demand globally​​.
  2. Ambernath Facility Expansion: The facility’s capacity has been expanded by an additional 40,000 MTPA, bringing the total installed capacity to 104,000 MTPA​​.
  3. Additional Land at Ambernath MIDC: The company has purchased 7 acres of land at Ambernath MIDC, with construction work already initiated​.
  4. A planned investment of ₹270 million is being deployed for a new facility at Ambernath, Maharashtra.​

Valuation and Recent Projects:

  1. Recent projects include capacity expansions at Ambernath and collaborations for innovative product lines like metal-free sustainable solutions.
  2. Valuation is supported by strong financial metrics, such as high ROCE and consistent market growth​.
  3. Market cap: ₹ 3,776 Cr., Stock PE: 30.6, ROE: 30.1%, ROCE: 38.7%, EPS: ₹ 11.0
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Final Outlook on Water Treatment Chemicals Manufacturers in India

Based on the detailed analysis of the five companies—Fineotex Chemical Limited, Ion Exchange, Rossari Biotech, Thermax, and VA Tech Wabag—it is clear that each has unique strengths and investment appeal, depending on the focus area of interest.

Thermax stands out as a robust investment option due to its diversified portfolio in energy and water solutions, strong financial performance with consistent revenue and profit growth, and strategic focus on green technologies. Its emphasis on zero-liquid discharge systems and renewable energy projects positions it as a leader in sustainability-driven growth. Additionally, Thermax’s strong balance sheet and international expansion plans enhance its long-term value proposition.

VA Tech Wabag is one of the best water treatment companies in India, especially for investors focused on the water sector. As one of the world’s top three private water operators, it has a dominant presence in desalination, wastewater treatment, and zero-liquid discharge technologies. Wabag’s asset-light model, strong order book (~₹11,448 crores), and global recognition as a technology leader provide compelling reasons for investment. The company’s strategic focus on high-growth sectors like green hydrogen and semiconductors further enhances its future growth potential.

Fineotex Chemical Ltd. is an emerging player in water treatment companies in India, strongly increasing its capacity in water treatment chemicals. With strong financial performance, increasing ROE and ROCE help it justify the valuation of the stock price.

In conclusion, Fineotex Chemical, Thermax, and VA Tech Wabag represent the best investment options from this set of water treatment companies in India, offering a blend of strong financials, strategic growth plans, and leadership in sustainable and technology-driven sectors. These are the best water treatment chemicals manufacturers in India that are well-positioned to capitalize on the growing demand for water solutions and green technologies and hence are attractive long-term investments.

Apart from the above water treatment chemicals manufacturers in India, there are other water treatment chemicals manufacturers as below.

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Water Treatment Companies in India apart from Best 5

  1. Chembond Chemicals Limited: Recognized as a major player in the Indian water treatment chemicals market.
  2. Gujarat Alkalies and Chemicals Limited (GACL): Produces a range of chemicals, including those used in water treatment processes.
  3. Tata Chemicals: Through its subsidiary, Tata Swach, the company is involved in water purification solutions.
  4. Praj Industries: Offers water and wastewater treatment solutions as part of its diverse portfolio.
  5. Vasu Chemicals LLP: India’s leading industrial water treatment solutions provider, offering comprehensive industrial water treatment chemicals and services. This is also one of the best water treatment chemicals manufacturers in India.
  6. SFC Environmental Technologies Private Limited: Specializes in wastewater and sewage water treatment for industries and municipalities.
  7. UEM India Pvt. Ltd offers turnkey solutions in wastewater and water treatment.
  8. Wog Technologies provides water and wastewater treatment solutions for industrial and municipal sectors.
  9. Hindustan Dorr-Oliver Limited offers services like sewage treatment plants, water recycling & reclamation, and wastewater treatment.
  10. Wog Technologies provides water and wastewater treatment solutions for industrial and municipal sectors.

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