General Electric Plans to Divest Water Treatment Business Unit by 2017

United States: General Electric, a United States based technology and financial services company, has planned to divest its water treatment business by 2017 and the proceeds earned from divestiture would be utilized for the expansion of oil & gas business unit of the company. Business segments of the company involves aircraft engines, power generation, water processing, and household appliances to medical imaging, business and consumer financing and industrial products. Post the sale of water treatment business, GE has planned to buy nearly 65 percent stake in Baker Hughes for USD7.4 billion. Divestment of water processing business involves sales of separation membranes, equipment and water treatment chemicals segments.

TechSci Research depicts that the divestment of water treatment business is a strategic decision as the proceeds generated from divestiture would be utilized by the company for the enlargement of the oil & gas business of the company. The decision to divest have a significant impact on the India wastewater treatment plants market as GE Water & Process Technologies is a major player in this market.

According to the recently published report by TechSci Research, “India Wastewater Treatment Plants Market By Type (Municipal and Industrial), By Plant Category (Less Than 50 MLD, 50 to 200 MLD and Over 200MLD), By Operating Mode (EPC and BOOT), Competition Forecast and Opportunities, 2011-2021”, India wastewater treatment plants market is projected to grow at a CAGR of over 12% during 2016-2021, on account of surging demand for wastewater treatment plants from municipal and industrial sectors. Stringent government norms issued by Central Pollution Control Board (CPCB) to ensure proper management and disposal of sewage is augmenting demand for construction of new sewage treatment plants in the country. In 2015, wastewater treatment plants with capacities between 50 MLD and 200 MLD dominated India wastewater treatment plants market. In the coming years, strong demand for municipal as well as industrial wastewater treatment plants is expected to emanate from Maharashtra due to presence of many wastewater generating industries such as sugar, textiles, chemicals and petrochemicals industries in the state.