Ion Exchange India Ltd is a pioneer of water treatment in India with a legacy spanning over five decades and recognised internationally as a premier company in water and environment management. Its range of products includes water, waste water treatment and recycling plants, using various physico-chemical processes for settling, clarification, filtration, disinfection, membranes and ion exchange technology, ion exchange resins for water and non-water processes; boiler cooling water and treatment chemicals. The company also offers technical services such as project management at site, design, erection and commissioning, operation and maintenance of plant and supply of spares. It is amongst the largest environment solution providers and one of the very few companies worldwide with a complete range of technologies, products and services. With six state of the art facilities spread across the country, it has the capability to deliver comprehensive solutions and complete technical support across segments to marquee clients. Being specialists in water and waste water, it offers total water and environment management solutions to infrastructure, industry, institutions, municipal, homes and communities, urban and rural sectors. Ion Exchange offers 360-degree environment management adding value across the entire circuit—from influent water through potable and industrial process water to effluent/sewage treatment and water recycle for zero discharge and waste to energy projects for solid waste management.
The company is a manufacturer of world class ion exchange resins for water and non-water speciality applications, membranes and water treatment chemicals in certified facilities. It also offers design and supply of water, process liquid, waste water treatment, water recycle plants—packaged, pre-engineered and custom-built on turnkey, BOT and EPC basis where the comprehensive 24/7 service support ensures high performance continuity to its customers across the globe. With a wealth of long standing expertise it exports to Africa, Japan, Middle East, Russia, South East Asia, UK and US and has more than 100,000 installations worldwide. There are over 500 installations in the core sector—at thermal and nuclear power stations, fertiliser factories, refineries and petrochemical plants. Currently, the business segment comprises engineering (58%), chemicals (32%) and consumer products (10%). The global water industry is expected to touch the $700 billion-mark, with water demand in India expected to grow at over 20% CAGR over the next few years.
There is almost 62,000 MLD of sewage generated across urban India and only 38%, or 23,000 MLD is treated, plus water availability is expected to decline in the future. This offers immense growth opportunities for companies like Ion Exchange in the water recycling market. Similarly, increased investment by the government, industry and rapid urbanisation will lead to greater demand for water treatment chemicals.
The company posted excellent Q4FY18 financial results and decent ratios of ROE at 19.6% and ROCE at 24.3%. The Ion Exchange stock quoting at Rs 432 can appreciate to Rs 525 levels in the next one year.
Rajiv Kapoor is a share broker, certified mutual fund expert and MDRT insurance agent