Welspun Enterprises acquires 50.10% stake in Michigan Engineers
Chennai, 23 August 2023: Welspun Enterprises Limited (WEL), the infrastructure development arm of Welspun World has announced the successful acquisition of a 50.10% stake in Michigan Engineers Private Limited (MEPL), a trenchless technology-based EPC company in the urban water infrastructure segment, from the existing shareholders for an equity investment of 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 the high-margin and high-growth water and tunnelling solutions segment, further strengthening its overall business portfolio.
Leveraging the sophisticated infrastructure development techniques deployed by MEPL, 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. 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 the 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 and low footprint. 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.
Commenting on the development of the acquisition, Mr Sandeep Garg, Managing Director, Welspun Enterprises Limited, said, “MEPL is 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. Our proven project management expertise, national presence, strong industry foothold and robust financial health, coupled with MEPL’s technical know-how, operational and execution capabilities and experienced manpower will deliver a sustained competitive advantage in the water and tunnelling solutions segment. Supported by favourable sectoral tailwinds, the transaction will enable us to further scale up operations and create a unique edge in the industry.”
Expressing his views on the acquisition, Mr. Saurin Patel, Managing Director, Michigan Engineers Private Limited, said, “We are delighted to be a part of Welspun World, known globally for its operational excellence and customer service. 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 tunneling space. We see tremendous synergies between us and are eager to deploy their project management skills and best practices, which will transform our business and further drive growth and profitability.”
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.