VA Tech Wabag Secures $272 Million Yanbu/INR 2,332 Cr Desalination Project in Saudi Arabia
By Shishta Dutta | Published at: Jul 24, 2025 10:53 AM IST
Chennai, July 24, 2025: VA Tech Wabag Ltd (WABAG), the Chennai-headquartered multinational specialising in water technology, has secured a substantial contract worth approximately US$272 million (₹2,332 crore) from the Saudi Water Authority (SWA). This prestigious order entails the comprehensive scope of design, engineering, supply, construction, and commissioning for a large-scale 300 Million Litres per Day (MLD) Sea Water Reverse Osmosis (SWRO) desalination plant in Yanbu, located on Saudi Arabia’s west coast.
This marks a significant greenfield project for WABAG, meaning it involves the construction of an entirely new facility from the ground up. The project is expected to be completed within 30 months from the effective date of the contract, which will be formally announced following the final signing procedures.
Following the announcement, the shares of the company significantly increased by 3.79%, or ₹60.30 and were trading at ₹1,653.30 as of 9:30 AM today.
Project Overview
The contract encompasses a complete lifecycle approach for the new desalination facility:
- Design: Conceptualisation and detailed design of the plant.
- Engineering: Technical planning and system integration.
- Supply: Procurement of all necessary equipment and materials.
- Construction: Execution of the physical build-out of the plant.
- Commissioning: Bringing the plant into full operational readiness.
The 300 MLD greenfield SWRO desalination facility will be strategically developed along Saudi Arabia’s Red Sea coast in Yanbu. WABAG’s commitment is to deliver this complex project within the stipulated 30-month timeframe once the contract’s effective date is established.
A detailed overview of the project is as follows:
| Project Details | Information |
|---|---|
| Client | Saudi Water Authority (SWA) |
| Location | Yanbu, Kingdom of Saudi Arabia |
| Capacity | 300 MLD (Million Litres per Day) |
| Order Value | USD 272 Mn / SAR 1,019 Mn / INR 2,332 Cr |
| Nature | International; Greenfield SWRO Project |
| Execution Period | 30 months post effective date |
| Related Party Transaction | No |
| Promoter Interest | None |
Strategic Significance Of The Project
This significant contract represents a repeat win for WABAG in the vital Saudi Arabian market, underscoring their proven capabilities and trusted relationship with the Saudi Water Authority.
Commenting on this latest development, Mr. Rohan Mittal, Head of Strategy and Business Growth for GCC, VA Tech Wabag Ltd, expressed immense pride:
“We are immensely proud to have emerged successful in this prestigious project, not just once, but twice. This repeat success underscores the strength of our technical competence, competitiveness and our deep-rooted capabilities in executing large and complex desalination projects. This prestigious project aligns with and contributes to the ambitious goals of Saudi Vision 2030 and reinforces WABAG’s global leadership in the desalination sector.”
The project is a direct contribution to Saudi Vision 2030, a comprehensive national strategy aimed at diversifying the Kingdom’s economy and enhancing public well-being, which includes ambitious goals for water security and sustainable resource management through advanced desalination and water treatment technologies.
Insights For Investors: What Does The Project Mean?
VA Tech Wabag has secured a major international order worth Rs. 2,332 crore (USD 272 million) from the Saudi Water Authority for a greenfield desalination plant in Yanbu. This is one of Wabag’s largest single orders and will be executed over 30 months. The project will significantly boost the company’s revenue visibility and order book, supporting long-term cash flows. It also improves Wabag’s foreign currency earnings and strengthens its position in high-value, global water infrastructure projects. Following the announcement, shares rose 3.79%, reflecting strong investor sentiment.
What’s Ahead For VA Tech?
With the Yanbu project win, VA Tech Wabag is poised for a strong growth phase. The $272 million contract will likely enhance revenue stability over the next 2–3 years, strengthening its international credentials in high-margin desalination projects. Execution efficiency will be key to protecting profitability, given the scale and complexity. If successfully delivered, this project could open doors to more large-scale government contracts in the GCC under Saudi Vision 2030. Additionally, a robust global pipeline and rising demand for water infrastructure in arid regions position Wabag well for sustained earnings momentum.
About VA Tech Wabag Ltd
VA Tech Wabag Ltd is a Chennai-headquartered multinational focused on water technology. The company specialises in water and wastewater treatment solutions and has a global presence with projects across over 20 countries. It is listed on both the NSE and BSE and operates with a strong engineering-driven business model.
REF:https://nsearchives.nseindia.com/corporate/VATECH_24072025081839_SI_YanbuOrder_sd.pdf
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