Toshiba Corporation acquires majority stake in UEM India
November 25, 2015 11:19 am
In a strategic move to strengthen its water and wastewater management business in India and neighbouring countries, Toshiba Corporation has announced acquisition of a majority stake in UEM India Private Limited (UEM), an international water services company, from the founders and IVFA. Toshiba acquired additional 54 per cent stake to become the major owner with 80 per cent shareholding in UEM; IVFA and the founding member, Mr. Krishan Kshetry remain invested as minority shareholders. The current management team at UEM would continue to run the operations of the Company.
Speaking on the development, Mr. Hirofumi Yoshino, Vice President, Water & Environmental Systems Division, Toshiba Corporation acknowledged, “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. After Toshiba acquired 26 per cent strategic stake in March 2014, UEM won some additional orders by synergies with Toshiba, for water and wastewater treatment plants from Japanese companies in India and other clients abroad. With this recent enhanced relationship, we will bring in our expertise and global access to enable UEM to become one of the leaders in global water treatment industry.”Mr. Vishal Nevatia, Managing Partner, IVFA said, “It has been a fulfilling journey for IVFA with UEM and Mr. Krishan Kshetry. Our team has been intensely involved with the Company over the last few years and we have built a team and business capability that we are extremely proud of. Over the last one year, IVFA has had a good working relationship with Toshiba on overseeing the business and we believe that Toshiba is a great partner who can take UEM to the next level of becoming a global leader in water treatment.”
Mr. 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-organising and professionalising 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.”
“Strategic control in UEM will enable Toshiba to bring in synergies with its other business and enable UEM to become one of the global leaders in water and wastewater management business. Toshiba ownership will open doors to new geographies and new business segments which UEM can address through its cost advantage and vast experience in delivering complex, turnkey services”, added Mr. Yoshino.