Water and sanitation: Value chain, from upstream to the customer
Utilities and treatment firms supplying clean water and handling wastewater and sludge
Value chain, from upstream to the customer
Criticality to the chain: 5 · Chokepoint 4 · Critical 3 · Important 2 · Supporting 1 · Commodity service Stage 1 Raw water sourcesOwn or manage dams, canals, river intakes and groundwater allocations, and sell raw water in bulk to city utilities, farms and industry.2
Why chokepoint: Water has no substitute and each city depends on one or two sources; a failed monsoon or reservoir stops the whole chain. Technologies Dams and reservoirs Canal and transfer pipelines Hydrological monitoring Groundwater recharge structures Depends on Commodities H₂O WaterCem CementSt Steel Energy H2O Water cycleNR Natural reservoirsMot Electric motors and drives Industries Construction and infrastructureExamples: Sardar Sarovar Narmada Nigam, Bhakra Beas Management Board, US Bureau of ReclamationMake transmission mains, distribution pipes and sewers, and sell them to utilities and EPC contractors under large tenders.
Why important: Several large makers in each region, but tender qualification and diameter-specific capacity mean switching takes months. Technologies Centrifugal casting of ductile iron Spiral and longitudinal welded steel pipe PVC and HDPE extrusion Cement mortar and epoxy linings Depends on Commodities Fe Iron oreSt SteelZn ZincCem Cement Chemicals PVC PVCHDPE High-density polyethyleneEPX Epoxy resins Energy Kc Coking coalBlr Boilers, furnaces and stovesDist Distribution grids, mini-grids and interconnectors Industries Metal productsPlastic and rubber productsExamples: Jindal SAW, Electrosteel Castings, Saint-Gobain PAM, Supreme Industries, Finolex IndustriesSupply the pumps that lift and pressurise water and sewage, plus valves and flow meters, to utilities and contractors.
Why important: Many qualified makers globally and in India, but large engineered pumps have lead times of several months. Technologies Centrifugal and submersible pumps Variable-speed drives Butterfly and sluice valves Electromagnetic and ultrasonic flow meters Depends on Commodities St SteelCu CopperNi NickelREE Rare earths Chemicals EPDM EPDM Energy Mot Electric motors and drivesPE Transformers and power electronics Industries Machinery and equipmentElectrical equipmentExamples: Grundfos, Xylem, KSB, Kirloskar Brothers, Shakti PumpsSell reverse-osmosis and ultrafiltration membranes, UV and ozone systems and packaged plants used for desalination, drinking water and water reuse.
Why critical: A handful of firms in the US, Japan and Korea make most RO membrane elements, and plants are designed around their specifications. Technologies Thin-film composite RO membranes Ultrafiltration hollow fibres Membrane bioreactors UV and ozone disinfection Ion-exchange resins Depends on Chemicals Amn Specialty amines and ethanolaminesPTFE Fluoropolymers (PTFE, PVDF)PSF Polyester fibreEPX Epoxy resins Energy Dist Distribution grids, mini-grids and interconnectors Industries Plastic and rubber productsExamples: DuPont Water Solutions, Toray, Nitto Hydranautics, Ion Exchange (India)Supply coagulants, disinfectants, antiscalants and pH chemicals to treatment plants under supply contracts.
Why important: Many chlor-alkali and coagulant makers, but disinfection cannot pause, so utilities hold contracts and stock rather than switch quickly. Technologies Chlorination and chlorine dioxide Alum and polyaluminium chloride coagulants Polyelectrolyte flocculants Dosing and monitoring systems Depends on Commodities NaCl SaltAl AluminiumCaO Lime Chemicals Cl2 ChlorineNaOH Caustic sodaWT Water treatment chemicalsH2SO4 Sulphuric acidAC Activated carbon Energy Dist Distribution grids, mini-grids and interconnectorsExamples: Ecolab (Nalco Water), Kemira, Kurita, Gujarat Alkalies and ChemicalsDesign and build treatment plants, desalination plants and pipe networks, often operating them for 5 to 15 years under DBO or hybrid annuity contracts.
Why important: A few dozen firms can deliver large plants, and pre-qualification rules narrow the field for each tender. Technologies Process design and hydraulic modelling Civil works for plants and reservoirs SCADA integration Hybrid annuity and DBO contracting Depends on Commodities Cem CementSt SteelAgg Sand & gravel Chemicals Con Construction chemicals Energy ICE Internal combustion engines and gensets Industries Construction and infrastructureBuilding materialsFinance: banking, insurance, marketsSoftware and IT servicesExamples: VA Tech Wabag, Larsen & Toubro (Water and Effluent Treatment), Veolia, AccionaTreat raw water and distribute it through networks to homes and businesses, and bill customers or receive state funding.2,3
Why chokepoint: Each city has a single network operator with no near-term substitute, so an outage stops supply to everyone downstream. Technologies Coagulation, sand filtration and disinfection District metered areas and leak detection SCADA and telemetry Elevated reservoirs and pressure management Depends on Commodities H₂O WaterCaO Lime Chemicals Cl2 ChlorineWT Water treatment chemicals Energy Dist Distribution grids, mini-grids and interconnectorsMot Electric motors and drivesICE Internal combustion engines and gensets Industries Electrical equipmentSoftware and IT servicesExamples: Delhi Jal Board, Bangalore Water Supply and Sewerage Board, Thames Water, American Water WorksRun sewer networks, pumping stations and sewage treatment plants, and sell or reuse treated water and biogas where possible.4
Why critical: Capacity is short (installed STPs covered about 44% of India's sewage in 2021, calculated) and each plant is a local monopoly that takes years to build. Technologies Activated sludge and SBR processes Moving-bed biofilm reactors Anaerobic digestion of sludge Tertiary treatment for reuse Depends on Commodities H₂O Water Chemicals WT Water treatment chemicalsCl2 ChlorineO2 Oxygen Energy Mot Electric motors and drivesCBG Biogas and biomethaneDist Distribution grids, mini-grids and interconnectors Industries Waste and recyclingMachinery and equipmentExamples: Brihanmumbai Municipal Corporation, VA Tech Wabag, Veolia, SuezEmpty on-site septic tanks and pits for households not on sewers and treat the sludge at dedicated plants.
Why supporting: Many small local operators compete and a household can switch provider within days. Technologies Vacuum tankers Faecal sludge treatment plants Co-treatment at STPs Drying beds and composting Depends on Commodities CaO Lime Energy ICV Combustion road vehicles Industries Vehicles, ships, rail, aircraftExamples: Tide Technocrats, Banka BioLoo, SanergySell meters, sensors and analytics that let utilities bill by volume and find leaks and non-revenue water.
Why supporting: Competitive market with many vendors; utilities can change supplier at the next procurement round. Technologies AMI smart water meters Acoustic leak sensors Hydraulic digital twins Customer billing platforms Depends on Commodities Cu CopperLi Lithium Chemicals PC Polycarbonate Energy Zn Other and primary batteries Industries Computers and electronicsTelecommunicationsSoftware and IT servicesExamples: Xylem (Sensus), Itron, Kamstrup, Badger MeterSet water quality and discharge standards, allocate funds under schemes such as the Jal Jeevan Mission and AMRUT, and lend for large projects.2,3,5
Why critical: Most water capex in India is government funded, so a delay in central or state releases stalls projects across the chain. Technologies Drinking water and effluent standards Tariff regulation Results-based funding Water quality testing laboratories Depends on Chemicals Rgt Reagents and high-purity lab chemicals Energy Bld Energy in buildings Industries Finance: banking, insurance, marketsPublic administration, defence and securityExamples: Ministry of Jal Shakti, Central Pollution Control Board, World Bank, Ofwat