Wipro has consent investment bank Anand Rathi to find a suitor for the water treatment business, which it entered about 4 years ago.
The sale of the water business could be Wipro’s first divestment although it has attempted selling other smaller businesses like baby diapers and vanaspati oil in recent past. A Wipro spokesperson declined to comment citing the company was in silent period prior to the quarterly results.
Wipro’s water treatment business undertakes projects for marquee clients such as Coca-Cola, GSK Pharma and United Breweries and would assist Voltas with a stronger institutional business.
According to the reports, Wipro could proclaim the sale of water business within a few weeks. There is no ultimate agreement in place at the moment. Earth Water Group, a New Delhi-based water purification firm, also looked at the deal although Wipro’s discussions with Voltas had moved ahead.
Wipro had entered the water business by acquiring Aquatech Industries in 2008. The water treatment business in India of Wiipro is approximate to be between $2 billion and $2.5 billion and the players comprise VATech, Ion Exchange, Thermax, Hindustan Dorr-Oliver and Driplex.
Voltas may buy Wipro’s water purification business.