Japan’s Toshiba Corporation has acquired a majority 80 per cent stake in IVFA-backed water services company UEM India Pvt Ltd (UEM) with the aim to strengthen its water and waste-water management business in India and neighboring countries, the company announced on Wednesday.
Toshiba, which was previously holding a minority 26 per cent stake in Noida-based UEM, has acquired the additional stake from its existing investors including IVFA and the founding member Krishan Kshetry. With this, the shareholding of both IVFA and Kshetry come down to 20% in UEM.
The current management team at UEM would continue to run the operations of the company, the press statement said.
Speaking on the development, Hirofumi Yoshino, vice-president – water and environmental systems division, Toshiba Corporation, said, “Water treatment is a strategic growth area for Toshiba, and UEM is a highly respected player in the water treatment business with vast experience in delivering complex, turnkey projects around the world. With this enhanced relationship, we intend to bring our expertise and global access to enable UEM to become one of the leaders in global water treatment industry.”
UEM has executed projects in over 30 countries across India, South East Asia, North America, Central America and Africa. In July 2010, IVFA had acquired a majority stake in the company, followed by a 26% strategic stake buy by Toshiba in March 2014. Since then, IVFA, Toshiba and the founders have been jointly overseeing UEM’s business.
Commenting on the acquisition, Krishan Kshetry, promoter, UEM, said, “IVFA has been a most supportive partner who has helped us scale the business and took the lead in re-organizing and professionalizing the business. I am now delighted with this next milestone of Toshiba deepening its partnership as it would provide a bigger canvas for UEM to work on.”
Toshiba has been Japan’s leading manufacturer of electrical systems for water supply and sewerage facilities for over 40 years. The company has also expanded the business into overseas markets, including China and Indonesia.