Rite Water Solutions India IPO

Rite Water Solutions India Limited IPO Strengths

• Driving Sustainable Rural Transformation

Rite Water Solutions leads India’s clean-tech sector with integrated water, solar agriculture, and IoT solutions. With over 9,000 installations purifying 627.42 million litres daily and 8,736 solar pumps under PM-KUSUM, it addresses rural challenges. Strategic positioning in high-growth sectors ensures sustainable impact and market expansion.

• Proven Track Record in Complex Infrastructure Projects

Rite Water Solutions India Limited has successfully executed large-scale infrastructure projects across India’s public sector, showcasing technical expertise and operational scalability. With over 9,131 water-related installations and 8,736 solar pumps deployed, its innovative solutions in water treatment, IoT, and solar energy drive sustainable development nationwide.

• Asset-Light Business Model Driving Agility and Scalability

Rite Water Solutions India Limited follows an asset-light business model, optimising strategic sourcing to enhance scalability and financial flexibility. By outsourcing non-core manufacturing while focusing on critical components, the company ensures cost efficiency, rapid market deployment, and adaptability to industry shifts, supporting consistent growth and profitability.

• Sustainability-Focused Business Model Aligned with ESG Principles

Rite Water Solutions India Limited integrates environmental, social, and governance (ESG) principles into its operations, aligning with global sustainability goals. Through renewable energy solutions, advanced water treatment, and IoT-based resource management, the company enhances efficiency while minimising environmental impact. This commitment strengthens its market position and attracts impact-driven investors and partners.

• Experienced Leadership and Strong Investor Backing

Led by Abhijeet V. Gan (Managing Director & CEO) and Vinayak S. Gan (Executive Chairman), Rite Water Solutions benefits from a leadership team with extensive experience in water, solar, and IoT sectors. Supported by marquee investors, including Incofin Investment Management, the company is strategically positioned for long-term growth and industry leadership.

• Proven Track Record of Profitability and Financial Stability

Rite Water Solutions India Limited has demonstrated consistent financial growth, with a 2-year CAGR of 62.46% in revenue from operations. Strong working capital management, minimal bad debt, and an asset-light business model contribute to its profitability. With EBITDA margins reaching 34.77% in Fiscal 2024 and a return on capital employed (ROCE) of 27.22%, the company operates with financial discipline and strategic debt management, maintaining a low debt-to-equity ratio of 0.08x in Fiscal 2024.

More About Rite Water Solutions India Limited

Rite Water Solutions India Limited is the only clean-tech company in India offering diverse solutions for rural transformation. The company operates across three key sectors:

• Water Solutions – Treatment, purification, and supply schemes

• Solar Agriculture Solutions – Solar irrigation pumps and cold storage

• IoT Solutions – Digital monitoring for energy, agriculture, and water management

Second Fastest-Growing Company in the Water Sector

Between Fiscal 2022 and Fiscal 2024, Rite Water Solutions became the second fastest-growing company in the Indian water sector based on revenue. The company’s EBITDA margin grew from 11.32% in Fiscal 2022 to 34.77% in Fiscal 2024, showcasing strong operational efficiency and growth potential. (Source: 1Lattice Report)

Expanding into Solar Agriculture and IoT

Leveraging its experience in rural solutions, the company entered the solar agriculture market, installing approximately 8,736 solar pumps by December 31, 2024, capturing a 2.85% market share. It is also an early player in IoT solutions, implementing large-scale energy and water management projects.

Commitment to Sustainability and Rural Development

Rite Water Solutions is dedicated to improving access to clean water, sanitation, and renewable energy in rural India. The company integrates innovation and technology to address energy shortages and water scarcity, supporting India’s infrastructure and social development goals.

• Operations in 21,807 villages across multiple states

• 9,131 water purification installations treating 627.42 million litres daily

• 8,736 solar pumps installed under the PM-KUSUM scheme

• IoT solutions in 2,639 villages and 1,837 energy sub-stations

Strategic Market Position and Asset-Light Model

Rite Water Solutions operates at the intersection of water treatment, solar pumps, and IoT, industries projected to grow at a CAGR of 12.0%, 32.1%, and 20.5%, respectively, by Fiscal 2030. Its asset-light business model enables scalable operations with minimal capital investment.

Strong Government and Private Sector Partnerships

The company works with central and state governments, executing projects under key programs such as:

• Jal Jeevan Mission (JJM)

• PM-KUSUM Scheme

• National Mission for Clean Ganga (NMCG)

Recognitions and ESG Commitment

Rite Water Solutions has received high ESG ratings and numerous awards, including:

• Future Ready Organization Award 2024-25 (Economic Times)

• Doing Good for Bharat Award 2024 (CSRBOX)

• Best Innovative Company in Water (ASSOCHAM, 2017)

Experienced Leadership and Promoters

Founded by Vinayak S. Gan (Executive Chairman) and Abhijeet V. Gan (Managing Director & CEO), the company benefits from a leadership team with extensive experience in water, solar, and IoT sectors.

With its innovative clean-tech solutions, strong financial performance, and strategic market positioning, Rite Water Solutions is well-equipped to drive sustainable development across India’s rural landscape

Industry Outlook

Water and Wastewater Treatment Industry

The Indian water and wastewater treatment market is expanding due to rapid urbanisation, industrialisation, and depletion of freshwater resources.

• Market Size and Growth: The market was valued at approximately USD 2.79 billion in 2022 and is projected to reach USD 5.60 billion by 2030, growing at a CAGR of 9.10%.

• Growth Drivers:

• Government Initiatives: Programs like the Jal Jeevan Mission drive demand for water treatment solutions.

• Industrial Regulations: Strict norms on industrial wastewater discharge are encouraging adoption of advanced treatment technologies.

Solar Energy Sector

India’s solar energy sector is growing rapidly, backed by favorable policies and increasing adoption of renewable energy.

• Market Size and Growth: The sector is expected to grow at a CAGR of 7.50% from 2025 to 2029.

• Growth Drivers:

• Government Policies: Initiatives like the PM-KUSUM scheme promote solar energy adoption in agriculture.

• Cost Reduction: Falling prices of solar panels make solar solutions more affordable.

Agrivoltaics Market

Agrivoltaics, which integrates solar energy production with farming, is an emerging sector in India.

• Market Size and Growth: The agrivoltaics market was valued at USD 102.01 million in 2022 and is expected to reach USD 204.58 million by 2029, growing at a CAGR of 12.30%.

• Growth Drivers:

• Land Utilisation: Enables dual use of land for solar energy and agriculture.

• Sustainability: Supports rural economies and promotes environmental benefits.

Solar Water Pump Market

Solar water pumps are gaining traction in India, especially in agriculture.

• Market Size and Growth: The Indian solar water pump market is projected to grow from USD 452.68 million in FY2023 to USD 2.12 billion by FY2031, at a CAGR of 23.2%.

• Growth Drivers:

• Energy Access: Provides reliable irrigation in areas with limited electricity.

• Government Incentives: Subsidies under PM-KUSUM are encouraging adoption.

How Will Rite Water Solutions India Limited Benefit

• Expanding Water Treatment Market: With the water treatment industry growing at 9.10% CAGR, Rite Water Solutions can scale its operations and secure more government projects.

• Increased Demand from Jal Jeevan Mission: The company can benefit from Jal Jeevan Mission’s push for safe drinking water by securing rural water purification projects.

• Industrial Compliance Driving Growth: Stricter wastewater regulations will increase demand for Rite Water’s advanced water treatment technologies in industrial sectors.

• Solar Agriculture Expansion: With the solar sector growing at 7.50% CAGR, Rite Water can expand its solar irrigation solutions, benefiting rural farmers.

• PM-KUSUM Scheme Opportunities: The company can capture a larger share of the solar pump market with government-backed subsidies and financing support.

• Growth in Agrivoltaics Sector: With agrivoltaics growing at 12.30% CAGR, Rite Water can integrate solar power with farming solutions to enhance rural sustainability.

• Rising Demand for IoT Monitoring: IoT-based energy and water management solutions will see higher adoption as India modernises its water and energy infrastructure.

• Strong Government Partnerships: Collaboration with central and state governments ensures a steady pipeline of projects across water, solar, and IoT sectors.

• Asset-Light Scalability: Rite Water’s asset-light model allows rapid expansion into high-growth markets with minimal capital expenditure.

• Sustainability and ESG Focus: Growing ESG investments will attract impact investors, further accelerating the company’s growth in clean-tech solutions.

Peer Group Comparison

• There are no comparable listed companies in India that engage in a business similar to that of the company. Accordingly, it is not possible to provide an industry comparison as per DRHP.

Key Strategies for Rite Water Solutions India Limited

• Strengthening Public-Private Partnerships

Rite Water Solutions has a long-standing history of over 16 years working with government bodies on large-scale projects. They aim to continue strengthening public-private partnerships to align with national priorities, ensuring a steady pipeline of projects and enabling future growth by participating in government schemes and tenders.

• Focus on Larger Projects

Rite Water Solutions focuses on large projects across water, solar, agriculture, and IoT sectors to ensure financial stability. By capitalising on government policy initiatives like PM Kusum and Jal Jeevan Mission, they aim to secure large-scale opportunities, leveraging these programs for long-term business growth.

• Diversifying Offerings and Expanding Geographic Presence

The company plans to diversify its solution portfolio and expand its geographic footprint in high-demand states and emerging international markets. They aim to address critical challenges like water scarcity and agricultural sustainability, particularly in Africa, leveraging their specialised knowledge and scalable solutions to improve health and living standards.

• Scaling Technological Innovation through Partnerships

Rite Water Solutions integrates advanced technologies like reverse osmosis, nanotechnology, solar energy, and IoT into their solutions. Through strategic collaborations with research institutions, they aim to scale their innovations and develop sustainable, high-impact solutions, addressing critical environmental challenges in underserved regions.

• Continuing Focus on Sustainability and ESG Principles

Rite Water Solutions is committed to sustainability by aligning their business practices with Environmental, Social, and Governance (ESG) principles. They focus on reducing environmental impact, promoting renewable energy, and improving resource efficiency. This commitment enhances their competitive advantage and strengthens their market reputation.