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Desalination Market in India-2013 Feedback Business Consulting Services Pvt. Ltd.www.feedbackconsulting.comMarket ResearchCustomer ExperienceStrategic Business Advisory Implementation Assistance

1All Rights ReservedNo part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher, Feedback Business Consulting Services Pvt. Limited. The information contained herein has been obtained from sources believed to be reliable. Feedback Business Consulting disclaims all warranties as to the accuracy, completeness or adequacy of such information. Feedback Business Consulting shall have no liability for errors, omissions or inadequacies in the information contained herein, or for interpretations thereof For information regarding permission, write to: Feedback Business Consulting Services Private Limited, 5th floor, Oxford Towers, 139, Airport Road, Bangalore 560 008 | India Phone: +91 80 4062 3801 Email: feedback@feedbackconsulting.comDisclaimer# | Fog Lights for your Business2Contents01BackgroundScope and limitationsResearch aim and objectives02Desalination Market in IndiaDesalination-OverviewIndian Desalination MarketIndustry StructureTechnologyRecently Completed ProjectsKey Projects & Future InvestmentsState wise Desalination PlantsGrowth drivers & RestraintsIndustry ChallengesMarket Trend of India Desalination MarketFuture outlook03About Us# | Fog Lights for your Business3BackgroundFog Lights for your Business# | 4Assessment of the Desalination Market in India for 2013 and market forecast for 2018Feedback has considered the fiscal year 2013 for this market assessment, which represents the period between April 2012 and March 2013The study was conducted during Jan 2014

Scope and timelinesQualitative information is based primarily on discussions held with the key players and could therefore be subject to variationsCurrent and Future trends are based on the secondary reports available from the various stakeholders reports

LimitationsScope and Limitation# | Fog Lights for your Business5Research aim and objectivesThe aim of the research is to present a comprehensive overview of the Desalination Market in IndiaOverview of Desalination Market in IndiaResearch aimRecently Completed ProjectsResearch objectivesKey Projects & Future InvestmentsProviding Insights Into Desalination market barriers and their impact on the future marketFuture Market Projections For 5 Years# | Fog Lights for your Business6Desalination Market in India# | Desalination-OverviewDesalination-Overview

Indian Desalination Market (cubic m/day)Desalination is a process that removes salt and other minerals from saltwater and brackish water in order to produce fresh water suitable for potable purposes, as well as water for irrigation and industrial purposesIndias water desalination business is set to triple to INR 120 crore by 2017 Total installed capacity of desalination plants in India was 912,368 cubic m/day in 2013TheDesalinationMarket is in its development stage inIndiaThe desalination market has witnessed phenomenal growth in last three yearsIt has emerged as a cost-effective solution to the need to provide waterIndia has 182 desalination plants operating in different locationThe number of units that process sea water in India will reach 500 in five years from 180 now, with more than 300 plants being built in the states of Tamil Nadu, Gujarat and Maharashtra, Gujarat and Tamil Nadu registered highest growth in desalination capacityMembrane-based technologiesare considered 23% cheaper for generating desalinated water when comparedwith thermal-based ones85 per cent plants in India are membrane based plantsTop industry players are Ion Exchange, Degremont, Thermax, VA Tech Wabag, Aquatech, GE Water & Process Technologies, IDE Technologies and BGR Energy SystemsMost of the desalination projects running in India are on PPP (Public Private Partnership) and BOOT (Build-Own-Operate-Transfer) ModelIndia allocated INR 53,660 crore for urban supply projects in the five years ending March 2012CAGR: 25.74%Source: Feedback Analysis# | Industry StructureIndustry StructureIndustrial Desalination Plants: Large companiesinclination to have captive desalinationplants to meet their process water demandsDesalination Service Providers/Equipment ManufacturersState Government-Owned Desalination Plants:Government comes out with desalination plantsto fulfill states household and municipalwater needsThe model used in tenders/projects by industrial institutions is custom build and transfer. In some projects, O & M is also taken care for 3 to 5 yearsThe model used in tenders/projects by government is BOOT (build, own, operate and transfer). Usual time spread is of 10 to 20 yearsNote: Power plants and pharmaceutical companies use 72 percent of the current capacity, with the remainder taken up by municipal corporationsSource: Feedback Bok# | TechnologyThermalMembraneMulti-stage flash (Most Commonly used)Multiple stage heating and condensation processGenerally built in units of about 4,000 cum/d to 30,000 cum/dOperating temperature around 120CMultiple Effect DistillationMultiple stage heating in a series of vessels or tubes Generally built in units of about 2,000 cum/d to 10,000 cum/dOperating temperature below 70CVapour Compression DistillationDistillation by vapour generation through compressor or a steam jet.Generally built in units of about 20 cum/d to 2,000 cum/dElectro dialysisWorks by electric potential difference of ion particles.Effectively neutralizing the individual charges through ion-exchange membranesMembranes are arranged alternativelyElectro dialysis Reversal ProcessElectric currentmigrates dissolvedsaltions, through an electrodialysis stack ofcationicandanionicion exchangemembranes.Capability of high recovery of waterLess chemical usageReverse OsmosisPressuring on semipermeable membrane to overcomeosmotic pressure to separate ions and moleculesEfficiency: 20-70 % of the feed flowSource: Feedback Analysis# | For Tata chemicals GE installed a 5.8 MLD sea water desalination plantIDE technologies has installed nine desalination plants at Jamnagar and two at Kakinada for Reliance Petroleum, two each in Essar Oil limited and Sanghi Industries limited, four for Nuclear Power Corporation of India and one for EID ParryBHEL has commissioned a desalination plant on a turkey basis in the Gulf of Mannar in Tamil NaduChemplast has set up a desalination plant in Karaikal to meet the needs of its caustic soda plantTata Steel has a set up an integrated water and power plant for its Titanium Dioxide facility in Tamil NaduSterlite Industries has set up a desalination plant for its copper smelting plant at Tuticorin in Tamil NaduL&T has set up a thermal desalination plant for its cement plant in GujaratRamanathapuram in Tamil Nadu on PPP for rural water supplyRecently Completed ProjectsRecently Completed ProjectsSource: Feedback Analysis# | Key Projects & Future InvestmentsMajor investments company wise (Rs in Mn)Company NameProject NameCost (INR Cr)CapacityMn LtrsProject StatusLocationStateSwarnim Dahejspring Desalination Pvt. Ltd.Dahej Seawater Desalination Plant Project200070.00AnnouncedDahejGujaratI V R C L Ltd.North Chennai Water Desalination Project500200AnnouncedNorth ChennaiTamil NaduCochin Port TrustWillingdon Island Desalination Plant & Water Supply ProjectNANAAnnouncedWillingdon IslandKeralaChennai Metropolitan Water Supply & Sewerage BoardNemmeli Sea Water Desalination Plant Project1033100.00Under ImplementationNemmeliTamil NaduGujarat Infrastructure Devp. BoardKutch Water Desalination Plant Project7501,500.00Under ImplementationKachchhGujaratN T P C Tamilnadu Energy Co. Ltd.Vallur Seawater Desalination Plant Project126.3NAUnder ImplementationVallurTamil NaduChemfab Alkalis Ltd.Sea Water Desalination Plant Project30 NAUnder ImplementationKalapetPuducherryGovernment Of IndiaPuzhayakayal Sea Water Desalination Plant14NAUnder ImplementationPuzhayakayalTamil NaduNote: Total number of outstanding projects as of Aug 2012 is 8 (Included only Announced Projects and projects under implementation)Announced Projects Projects that are announced and not yet startedProjects Under Implementation Projects that are currently ongoing which is termed as projects that are under implementation Investments by Project Status Cost Rs in CrSource: Feedback Analysis# | State wise Desalination PlantsSource: Feedback BoKState wise Desalination Plants

Indian Desalination Services marketGujarat and Tamil Nadu have been more active in setting up desalination plants in comparison to other coastal states in IndiaOthers include states such as Maharastra, Andhra Pradesh, Rajasthan, Orissa, and West Bengal. Large projects such as Krishnapatnam port, Kasnau-Matasukh Lignite Mines, Visakhapatnam, and so on are scheduled to be functional in the coming yearsDrinking water scarcity is one of the major reason for coastal regions to go for desalinationIncreasing awareness for excess ground water contamination has forced industrial and institutional setups to look for desalination plants for water needs. State governments strictly working for the norms of industrial usage of ground water. The market in non-coastal regions mostly consists of large industrial and institutional corporate housesCurrent Desalination Plants state wise Capacity: 2,91,820 cum/day, (India), 2012# | Growth drivers & RestraintsSource: Feedback BoKGrowth DriversRestraintsSupport from the Central Government and many states have contributed enormously in growing demand for desalinated water in IndiaGrowth in population and reduced availability of safe drinking water (especially in coastal regions)Wide disparity in rainfall distribution in different regionsLack of adequate rainfall and surface water resources in catchment areasIncreasing restriction on ground water usage leading to demand for alternative sources of water especially among industriesDecrease in per unit cost of desalination from latest technological developments IndustrializationIncrease in cost of water will inflate overall production costs for any industrial unit. This factor impedes the adoption of desalination plantsInfrastructure maintained by industries, which started a decade ago will have to go for restructuring to accommodate desalination plant. Such restructuring is not supported by most of the industrial setupsMany industrial units are installing plants for water recycling and reducing water usage. This, in turn, will reduce the opportunities for desalination plantsAlthough India is not much effected by global recession, still a few projects have been put on hold by industries to keep their energies focused on the core work# | Industry Fragmentation:Desalination market in India is highly fragmented with so many Tier-2 and regional players. Creation of industry wise standards is a major challengeImproper Training and Skill sets: As the desalination market in India is new, there is a scarcity of proper human resources. Skilled human resource and training the resource handling the plant is a major challenge . Improper training of the staff handling the plants is a major challenge for this growing industryBureaucratic Hurdles:There are many desalination projects, which were announced in 2005 in Orissa, Andhra Pradesh, and Pondicherry. However, due to slow execution and bureaucratic hurdles, they have not started yetProtests:Recent fishermens protest against Adani groups SEZ and its desalination plant in Bhuj, Gujarat has raised questions on the growth of desalination plants near the coastal linesPower:Major challenge is the availability of power. In order to run a successful desalination plant, access to a stable uninterrupted 24x7 power supply is a major requirementIndustry ChallengesIndustry ChallengesSource: Feedback BoK# | Market Trend of India Desalination MarketSource : - Feedback BoKThe Indian desalination market is very nascent and in the development stage Desalination market is expected to outperform the other water treatment markets. Government support, private sector participation, and awareness will help in the growth of this marketWith Government support, private sector participation, and awareness will help in the growth of this market. With foreign players eyeing this market, it will witness some best practices, in terms of technologies and processes, being adopted in near future.# | Future outlookFuture outlookIndian Desalination MarketIndia desalination market to grow at 22% CAGR till 2017 to reach INR 6000 CrIndia is expected to have over 500 desalination plants by 2017Withmore than 300 plants being built in the states of Tamil Nadu, Gujarat and MaharashtraThe top five states to emerge as desalination hubs are Maharashtra, Gujarat, Tamil Nadu, Karnataka and West Bengal A 150-million-litre-a-day desalination plant to convert sea water to drinking water is to come up adjacent to the Nemmeli desalination plan. The additional capacity will supply drinking water to over 6.46 lakh residents in the suburbs to the south of Chennai which were added to the City Corporation limits.With growing demand and more focus on desalination by states, the capacity is expected to reach 1,449,942 cubic m/day by 2015There are many projects, which are approved by respective government bodies and are in initial phases of development. Government projects have invited tenders for desalination plants on BOOT model. The government is considering a proposal for setting up six Low Temperature Thermal Desalination (LTTD) plants on Lakshadweep Islands INR CrCAGR: 22%Source: Feedback Bok# | About UsAbout Feedback# | # | We have enabled investmentsOur experienceThere is no comparable research and consulting firm in India

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