FCC

Welspun acquires 50.10% stake in Michigan Engineers

2023-08-23

Welspun Enterprises (WEL), the infrastructure development arm of Welspun World has announced the successful acquisition of 50.10% stake in Michigan Engineers (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 a 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 complement 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, 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 knowhow, 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.”