Packaged Waste Water Treatment Plant - Final

Packaged Wastewater Treatment Market in India
Portraying huge market potential because of growth in key

industries like food & beverage and pharmaceuticals.
P71D-15
June 2013
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Research Team
Name Krishna Chandra Dey
Research Analyst
Environment Technologies Practice
+91.33.66273337
krishnachandraD@frost.com
Lead Analyst
Research Director
Name Sasidhar Chidanamarri
Industry Manager
+91.44.66814081
sasidhar.chidanamarri@frost.com
Strategic Review Committee Leader
Name Nideshna Naidu
Industry Analyst
+91.44.66814351
nideshna.naidu@frost.com
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Contents
Section Slide Numbers
Executive Summary 4
Market Overview 9
Total Packaged Wastewater Treatment Market in India -
External Challenges: Drivers and Restraints 15
Forecasts and Trends 22
Market Share and Competitive Analysis 31
End User Segment Breakdown 40
State Suitability and Industry Breakdown 50
End User Segment Overview 53
The Last Word 63
Appendix 66
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Executive Summary
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Executive Summary
The packaged wastewater treatment market presently is in growing stage with a market
size of INR 1,600 million and 12.8 percent CAGR between 2012-2017, which throws ample
opportunities.
The packaged wastewater market in India is slowly expanding from Industries to hotels and
institutions.
Small break even period coupled with stringent laws and government initiatives and polices
are the major drivers of the industry.
The food and beverage industry growing at 25 percent Compound Annual Growth
Rate(CAGR) and pharma industry growing at 15 percent CAGR dominates the industrial
segment.
The low penetration of such systems in class-I cities(32 percent) and class-II cities(8
percent) is an eye opener for new as well as present market players.
Regulation in various cities like Gujarat and government initiative for wastewater treatment
in Bihar is propelling such systems in these two cities enormously.
West Bengal, Gujarat, Karnataka, Andhra Pradesh and Bihar are high growth rate markets
for packaged systems.

Source: Frost & Sullivan.
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Executive SummaryMarket Engineering Measurements
Market Stage
Growing
Market Revenues
INR 1,600 M
(2012)
Average Price Per
Unit
INR 2.20 M
Market size at the end of
Forecast Period
INR 2,925 M
(2017)
Base Year
Market Growth
Rate
11.2%
5 Year Forecast
Market Growth
Rate
12.8%
(CAGR)
Customer Price
Sensitivity
5
(scale:1 [low] to 10 [High])
Market
Concentration
15.4%
Degree of
Technical
Change
6
(scale:1 [low] to 10 [High])
Market Overview
Total Packaged wastewater treatment market: India, 2012
For a tabular version click here.
Stable Increasing Decreasing
(% of market share held by
top 3 companies)
Note: All figures are rounded. The base year is 2012. Source: Frost & Sullivan analysis.
(2012)
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Average
Product
Development
Time
3-5
Years
Number of
Competitors
100-150
(active market competitors in
base year)
Executive SummaryMarket Engineering Measurements
(continued)
Competitor Overview
Stable Increasing Decreasing
Maintenance
frequency
1-2 times
per year
(average maintenance
frequency)
Total Addressable Market
Industry Advancement
Marketing
Spend as a
Percent of
Market Revenue
2-3%
. Note: All figures are rounded. The base year is 2012.
Source: Frost & Sullivan analysis.
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Executive SummaryCEOs Perspective
2
The market is highly Fragmented so
Tie-ups with local players could be a
game changer.
3
Educational promotions regarding low
operating cost of such systems in long
run is an efficient marketing strategy.
4
Patented technologies give cutting
edge in enhancing the profit share as
consumers are not much cost-sensitive
as quality sensitive.
5
Such small systems are being
promoted by state governments by
giving tax breaks etc. which is leading
to many start- ups in this industry.
1
Branding is extremely important for
higher profit margins in case of
Industrial packaged systems.
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Market Overview
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Market OverviewDefinitions
The market covered by this project comprises packaged
wastewater treatment plants in India Upto a capacity of 500
Kilo liters per day(KLD).
The scope of this project includes all sorts of wastewater
treatment installations within 500 KLD. It doesnt include
parallel pre-treatment facilities.
This study covers the break up of packaged systems end
user wise and also points the potential states and sectors for
such systems.
Revenue is specified in Indian Rupees (INR) Million.
2017
Time
Line
Geographic Scope
Short Term Long Term
2012
2014 2015
Forecast
Period
Base
Year
Medium Term
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P71D-15
Market OverviewKey Questions This Study Will Answer
Is the market growing, how long will it continue to grow and at what rate?
What are the sectors which are expected to see major growth for packaged systems?
Will these companies/products/services continue to exist or will they get acquired by other
companies?
Which states of India are most suitable for market expansion and what are the factors that drive the
market in these states?
Are the products/services offered today meeting customer needs or is there additional development
needed?
Are the vendors in the space ready to go alone, or do they need partnerships to take their business
to the next level?
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Market OverviewSegmentation
Note: All figures are rounded. The base year is 2012. Source: Frost & Sullivan
analysis.
Commercial
20.0%
Municipalities
30.0%
Industries
50.0%
Percent Sales Breakdown
Packaged wastewater treatment plant: India,2012
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Market Share by Technology
. Source: Frost & Sullivan analysis.
Key Takeaway: RO Systems would increase its market share at the cost of MBBR.

MBBR
50%
MBR
10%
RO
25%
OTHERS
15%
Packaged Wastewater System Breakdown by Technology
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Technology Break Up Discussion
Moving Bed Bio-Film Reactor(MBBR)- It uses polyethylene biofilm carriers operating in
mixed motion within an aerated basin. It has the advantage of compact size but it requires
maintenance and cant bear shock loads.
Membrane Bio reactor(MBR)- It is the combination of a membrane process like
microfiltration or ultrafiltration with a suspended growth bio reactor. It is effective at high
concentrations of solids due to cross flow mixing.
Reverse Osmosis(RO)- Reverse osmosis uses osmotic pressure gradient in opposite
direction and produces extremely high purity of water and is highly used in Pharma
industry. It is a costly method compared to MBBR and MBR technologies.
Fluidized Media Reactor(FMR)- Its very similar to bio reactor with only difference that the
entire medium is fluidized and air is generally used as fluidizing media and its a complete
physical separation process.
Other Technologies- Other Technologies like Field erected package(FEP), Sequential
batch reactor(SBR) are relatively new technologies. Up flow Anaerobic Sludge blanket
digestion(UASB) is a very slow process and is used where there are no space constraints.

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External Challenges: Drivers and Restraints
Total Packaged Wastewater Treatment Plant Market
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Drivers and Restraints

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1-2 years 3-5 years 6-10 years
High growth rates of food and beverage industry
is expected to propel the demand in industrial
segment.
Impact: High Medium Low
Packaged Wastewater Treatment Plant Market: Key Market Drivers and Restraints, India, 2012-2017
Construction industry development accompanying
the industrial growth would drive the demand in
hotels and institutions.
Increasing government regulations, tax breaks and
stringent water disposal parameters coupled with
declining cost and increased awareness would lead
to more use of such packaged systems.
Lack of awareness about operating cost, and
profitability is pegging the rapid growth.
Negligence in the implementation of water
pollution laws and back end corruption is also a
deterrent.
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Drivers Explained
The Growth of the Food and Beverage Industry
The Indian Food and Beverage Industry is witnessing an annual growth rate of 25.0 percent with a market size of
$69.4 billion and expected to grow at massive rates owing to increasing population and higher rate of urbanization.
Rapid Urbanization
The increasing rate of urbanization and growing fast food culture coupled with westernization is propelling the Food
and Beverage industry. This is pretty evident from the increasing per capita consumption of almost all food items.
The expansion plans of all major companies in this sector and the opening of retail sector to foreign direct
investment and the clause that they have to procure 30 percent of items from domestic suppliers, would lead to
increase in efficiency in terms of water treatment technology which in turn would increase the demand of small
packaged wastewater treatment plants.

Food Companies Expansion Plans
Nutricia International Its aiming to double the sales in the next three years by consolidating the local brands acquired from
Wockhardt and then introducing selected brands from Danones International nutrition portfolio.
Poncho Indian Angel network has made an investment in Mumbai based Mexican quick service restaurant,
Poncho to reach 15 outlets by 2012.
New Silk route New Silk Route (NSR) plans to invest about US$ 100 million to expand its food and restaurant
portfolio.
Coca-Cola Coca-Cola plans to invest US$ 5 billion over the next 10 years as it expands its capacities in India.
MOFPI The Ministry of Food Processing Industries (MoFPI) has formulated a Vision 2015 Action Plan that
includes trebling the size of the food processing industry, raising the level of processing of
perishables from 6 per cent to 20 percent, increasing value addition from 20 per cent to 35 percent,
and enhancing India's share in global food trade from 1.5 per cent to 3 percent.
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Drivers Explained (continued)
The Growth of the Construction Industry
The Indian Construction Industry is expected to witness an annual growth rate of 10 percent with a market size of
INR 2.40 billion and expected to grow at massive rates owing to increasing population and higher rate of
urbanization.
Rapid Urbanization
The constant demand supply gap in the construction industry is fuelling the real estate, hotels and institutions
growth in urban areas and also leading to expansion of urban areas. Moreover the RBIS stand of reducing the
interest rates and paring down the Cash Reserve Ratio is clearly an indicator of steps to spur investment which is
bound to have a repel effect on the construction industry especially associated real estates, hotels and institutions.
Maharashtra, Andhra Pradesh, Tamilnadu, Uttar Pradesh and west Bengal are key states for packaged systems in
hotels and institutions.

0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
Construction Industry Relative Growth, India, 2012
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Source: Frost & Sullivan analysis
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Drivers Explained (continued)
Government Laws and Regulations and increased Awareness
The water laws and regulations are getting stringent day by day and with more emphasis being laid on its
implementation, the percentage of industries following the standards are on the rise. Many states like Bihar are
giving tax breaks to the start up companies setting up wastewater treatment facilities. The government is also
providing loans at zero percent interest rate on a case by case basis. Of the overall 4,339 MLD capacity Sewage
treatment plant that has been sanctioned in 167 towns under national river conservation plan 3,095 MLD has already
been installed. The low O & M cost of STP systems as well very low power consumption is a fact not much of a
popular fact. As the awareness spreads more and more companies would adopt such systems and stop discharging
the waste directly into the water bodies.

Source: Infrastructure report 2011 & Frost & Sullivan analysis
Polluting Sources Specific
Standards
Current Status
Domestic sewage from towns and
cities.
MINAS STP facilities exists for only 26% of sewage from class-I
and class-II cities. Out of those only 55% are complying
with MINAS.
Industrial Effluents (point discharges) MINAS(Industry
specific)
No Comprehensive statistics available but wide spread
damage is documented by CPCB.
Industrial and mines run-off No
standards/legislation
No comprehensive study measuring the quantum of
contaminants available.
Agricultural run-off No
standards/legislation
Widespread run off of pesticide prone water to water
bodies have been documented.
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Restraints Explained
Lack of Awareness
The lack of awareness about low operating cost and the subsequent tax benefits from meeting the
government standards has created a myth that packaged systems are costly to operate and install. The
installation cost varies between INR 10-30 lakhs depending upon the complexity of applications. The cost of
power varies with technology and ranges from INR 1.31/m^3 to INR 9.61/m^3. The Operation & Maintenance
cost varies from INR 0.57/m^3 to INR 5.48/m^3.
Moreover industries complying the standards can export goods which is an additional revenue making
feature. So as the wastewater management companies and consultants work for increasing the awareness,
on short run they are major impediments.
O & M cost & Power cost variation with Technology, India, 2011

Source: Grover(2011) & Frost & Sullivan analysis
Technology O & M cost/m^3 (INR) Power cost/ m^3 (INR)
Extended Aeration 0.57 1.31
Classical Tertiary+ UV+ CL 5.11 8.74
MBR +UV+ CL 5.48 9.61
Densadeg. (Degermont technology) +
Bio formation.
1.73 3.01
Biotower+ Densadeg + Bio formation 1.14 1.68
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Restraints Explained(continued)
Negligence in law implementation and back end corruption
Though there has been laws related to wastewater standards but lack of implementation has lead to low
penetration of such laws even in tier-I cities. The prevalence of corruption in environmental departments
leads to illegal approval of water discharge directly to water bodies without meeting the requirements. Even
in Class-I cities the available treatment capacity is only 32% whereas in class-II towns it is only 8%.
CPCB provides source specific pollution standards for industries with respect to pollution concentration of
major water pollutants: (BOD), chemical oxygen demand (COD), suspended solids (SS), and PH.

Wastewater treatment Capacity in Urban Areas, India, 2012

Source: CPCB(2008) & Frost & Sullivan analysis
Category No. Of Cities Total water
supply(in MLD)
Wastewater
generation (in
MLD)
Treatment
capacity (in MLD)
Class-I city 498 44769.05 35558.12 11553.68(32%)
Class-II town 410 3324.83 2696.70 233.7(8%)
Total 908 48093.88 38254 11787.38(31%)
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Forecasts and TrendsTotal Market
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MEASUREMENT NAME MEASUREMENT TREND
Market Stage (Nascent, Growth, Mature) Growing

Market Revenue (2012) INR 1,600 M
Market Units/Volume (2012) 750-800
Average Price Per Unit
INR 2.20 M
Market Size at End of Forecast Period (2017) INR 2,925 M
Base Year Market Growth Rate 11.2%
5 Year Forecast Market Growth Rate (CAGR) , 2012-2017
12.8%
Customer Price Sensitivity (scale of 1 to 10, Low to High)
5

Degree of Technical Change (scale of 1 to 10, Low to High) 6
Market Concentration (% of base year market controlled by top three competitors)
15.4%

Market Engineering Measurements
TREND
Decreasing Stable Increasing

Market Overview
Total Packaged Water Treatment Plant Market: India, 2012
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P71D-15
Maintenance frequency(average maintenance frequency) 1-2 times per
year

Number of Competitors (active market competitors in base year) 100-150

Market Engineering Measurements (continued)
TREND

Competitor Overview
Total Addressable Market
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Average Product Development Time 3-5 Years

Marketing Spend as a Percent of Market Revenue 2-3%
Market Engineering Measurements (continued)
TREND

Industry Advancement
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Forecast Assumptions
A stable economic outlook has been considered for the next five years with GDP growth of 8 percent
for the period (2012-2017).

The Asian market for water and wastewater treatment in the pharmaceutical industry is expected to
witness a CAGR of 16.5 percent according to the Frost & Sullivan Global Pharmaceutical Water and
Wastewater Study.

The growth of Textile industry has been assumed to be 16 percent according to National
Manufacturing Competitiveness Council (NMCC) report.

The growth of Food & Beverage industry over the next five years has been assumed to be 25 percent
according to government reports and the allowance of Foreign direct investment in retail with a
clause of procuring 30 percent goods domestically.

The Pharma industry and Distillery industry are expected to grow at a rate of 15 percent and 9
percent annually according to planning commission annual report.

The Hotels and Institutions are expected to grow at a rate 10 percent annually considering the
population growth and urbanization trend in India.

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P71D-15
9.5
10.0
10.5
11.0
11.5
12.0
12.5
13.0
13.5
0
500
1,000
1,500
2,000
2,500
3,000
3,500
2012 2013 2014 2015 2016 2017
Revenue (INR Million) 1,600 1,779 1,993 2,251 2,559 2,925
Growth Rate (%) 10.9 11.4 12.3 12.6 12.9
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Year
Total Packaged Wastewater Treatment Market: Revenue Forecast
India, 20122017
CAGR = 12.8% (2012-2017)
Revenue Forecast
Key Takeaway: Growth is fuelled by increasing adoption and industrial growth.

28
P71D-15
Revenue Forecast Discussion
In 2012, the packaged wastewater treatment plant market in India was valued at INR 1,600 million. It is in
growing stage with a highly fragmented market structure.
The adoption of sewage treatment plants even in class-I cities have been only 32 percent and in class-II
cities it is only 8 percent. These unexplored markets are key potential for packaged plants due to space
constraints as well as due to government regulations.
As the economy starts gaining confidence and the investment scenario comes back on track, the
packaged system would get more popular due to environmental issues which explains the high growth rate
predicted at the latter half of the forecast period when its expected to grow at a rate between 12-13
percent per annum.
The growth is expected to be steady over the next 5 years and the market size is forecasted to grow to
INR 2,925 million at the end of the year 2017.
The opening up of foreign direct investment, lowering of cash reserve ratio and reducing the interest rates
would bolster the investment mainly in infrastructure and food industry where huge demand potential is yet
to be untapped.

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0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
-
500
1,000
1,500
2,000
2,500
3,000
3,500
2012 2013 2014 2015 2016 2017
Municipalities 480 523 573 630 696 773
Industries 800 907 1039 1201 1399 1637
Commercial Hotels & Institutions 320 349 382 420 464 515
Growth Rate (%) 11.2 12.1 12.9 13.7 14.3
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(
%
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Revenue Forecast by End User
Key Takeaway: Industrial segment outweighs municipal & commercial
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Total Packaged Wastewater Treatment Market: Revenue Forecast by End User
India, 20122017
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End User Market Revenue Forecast Discussion
The end user market can be broadly categorized into municipalities, commercial and
industrial.
The municipalities have about 30.0 percent market share, commercial which includes
hotels, institutions and hospitals have 20.0 percent market share and industries form the
major chunk taking 50.0 percent market share.
The main driver among the end users is industries which is expected to have a CAGR of
15.4 percent whereas municipalities and commercial are pegged at 10.0 percent growth
rate.
In the municipal segment the second tier cities are expected to be the major contributor
where rate of wastewater generation is on a higher note.
In the commercial segment its the green buildings that are expected to be key driver
due to higher rates of technology adoption.
In the industrial segment food and beverage industries is the blooming sun growing at a
CAGR of 25.0 percent followed by textile industry growing at a CAGR of 16.0 percent.

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Market Share and Competitive Analysis
Total Market
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Competitive AnalysisMarket Share
* A list of Other companies can be found in the appendix. Note: All figures are rounded. The base year is 2012. Source: Frost & Sullivan analysis.
Key Takeaway: Smaller companies like cater to different market compared to bigger
players like due to lack of technology to treat complex impurities.
Ion Exchange
12%
Aquatech Systems
9%
Siemens
2%
Aquadesigns
4%
Driplex
1%
Thermax
3%
Degermont
6%
Shubham Inc.
5%
Marcus water Treatment
4%
RO Chem
9%
Lotus Environment
Technology Pvt. Ltd
1%
Neela Systems
3%
Sai enviro
1%
Others
40%
Per Cent of Sales
Total Packaged Wastewater treatment Plant Market: India, 2012
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Market Share Analysis
Companies Revenue (INR Million)
Ion Exchange 195.0
Aquatech Systems 150.0
RO Chem 150.0
Degermont 90.0
Shubham Inc. 80.0
Others
935.0
Total 1,600.0
* A list of Other companies can be found in the appendix. Note: All figures are rounded. The base year is 2012. Source: Frost & Sullivan analysis.
Total Packaged Wastewater Treatment Plant Market:
Company Market Share Analysis of Top 5 Participants
India, 2012
The packaged wastewater treatment plant market is
highly fragmented. The top five players in the market
occupy only 41 percent of market share. Ion Exchange
has been the market leader since long and is expected
to continue its position owing to wide portfolio of
products and better brand positioning. RO Chem sells
only patented systems which are expensive and have
very high profit margins. They sell packaged systems
only for industries. Degermont is a relatively new
entrant in the packaged segment whereas Shubham
Inc. caters to both industrial and hotels segment. They
have MBBR, MBR as well as RO systems but the
capacity is limited to 300 KLD. Moreover they dont
treat industrial waste water having oil, grease or dye as
impurities. Others form a major part of the market as
there are many small players like Driplex, Sai Enviro
etc. making the packaged wastewater treatment market
a fragmented one.
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Competitive Environment
Packaged Wastewater Treatment Market: Competitive Structure,
India, 2012
Number of Companies in the Market
100-150 companies with 7 companies more than INR 60
million revenue.
Competitive Factors Brand, Operating cost, Reliability and Client relationship
Key End-user Groups
Municipalities, Commercial and Industries (Pharma, Distillery,
Food and Beverage and Textiles).
Major Market Participants Ion Exchange, Aquatech systems, RO Chem, Degermont
Market Share of Top 5 Competitors 41 percent
Other Notable Market Participants Shubham Inc., Marcus Water Treatment, Aquadesigns
Distribution Structure EPC contractors, OEMs, direct sales, consultants
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Top Competitors
Company Strengths Weaknesses Opportunities Threats

Ion Exchange
Excellent brand, wide
product portfolio.
Limited presence in
class-II & class-III cities.
Huge untapped market in
class-I cities.
Existence of small
players.
Aquatech Systems Diversified product
range. Cost effective
products.
Lack of brand recognition
in the market.
Supply-demand gap of waste
water system is maximum in
Maharashtra where Aquatech
systems is located.
Existing players are
also eyeing upon the
prevalent market
opportunity.
RO Chem Patented Technology
of RO system.
Limited local presence,
only in industrial
segment, Expensive
products.
Huge market of smaller
capacity systems yet to
channelize.
Companies like Ion
exchange and
Degermont are big
threat in the RO
segment.

Degermont
Technologically
efficient, excellent
brand recognition.
Limited product portfolio
in smaller capacity
systems.
Can tap the industrial segment
especially Pharma and food
and beverage using its high
quality product portfolio.
Competition from
bigger players like Ion,
Exchange and RO
Chem in the industrial
segment.
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Competitor Growth Analysis
Note: Bubble size represents relative capitalization. The
base year is 2012. Source: Frost & Sullivan analysis.
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1
1
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2
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1
2

Ion-Exchange
Revenue ($ Million)
Aquatech Systems
Degermont
RO Chem
Key Takeaway: RO Chem is the fastest growing company in the packaged waste
water treatment plant sector with yoy growth rate of 20%

Competitor Growth Analysis
Total Packaged Wastewater Treatment Plant: India, 2012
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Tier II
INR 20.0-150.0
Million
(10-15 companies)
Tier I
>INR 150.0
Million
(3 companies)
Tier III
<INR 20.0 Million
(400-450 companies)
Competitive AnalysisMarket Share by Tiers
Key Takeaway: Market is expected to remain fragmented for the next five years.

Total market participants = 100-150
Total Packaged Wastewater Treatment Plant Market: Market Share Analysis by Tiers, India, 2012
Ion Exchange, Aquatech systems and RO Chem
are Tier I companies operational in India. Among
Tier-I companies RO Chem supplies only to
industries.

Aquadesigns, Siemens, Degermont, Shubham
Inc. are among the Tier II companies operational
in India. The Tier II is the most competitive
segment of the industry.

Tier III companies form a huge chunk with about
37.5 percent market share by revenue. They
mostly cater to small municipalities and their
capacity ranges to 100 KLD.
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Technology matrix of Packaged Systems Companies
. Source: Frost & Sullivan analysis.
Key Takeaway: New technologies like FMR, UF, SBR are gaining ground
Name of the Company MBBR MBR RO FMR UF SBR UASB
Ion Exchange Y Y Y Y Y Y N
Aquatech Systems Y Y N N N N Y
Siemens Y Y N N N N N
Aquadesigns Y Y Y N N N N
Driplex Y Y Y N N N N
Thermax N Y Y N Y N N
Degermont Y Y N N N Y Y
Shubham Inc. Y Y N N N N N
Marcus water Treatment Y Y N N N Y Y
RO Chem N N Y N Y N N
Lotus Environment Technology Pvt. Ltd Y Y N N N N N
Neela Systems N N Y N Y N N
Sai enviro N Y Y N N N N
Technology used by Manufacturers, India, 2012
Y- yes & N- No
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Product Quality: Product quality is important for industrial segment where higher profit margins can be
garnered by superior quality.
Reliability: Reliability is created by the prior experiences of the supplier and market brand name.
Pricing: Prices still vary among suppliers due to differing technology, output specifications, reliability and
brand value.
Vendor Client Relationship: Client relationships are very important when the product differences start
blurring out in small capacity systems of the order of 100 KLD.
Acquisition: Acquisition of smaller companies is essential to gain regional dominance because the
expertise needed to handle smaller clients at regional level would increase the operating and
administrative cost for bigger companies, so using the distribution network of smaller companies by
acquiring them would be an instrumental step towards market consolidation.
Product Innovation: R&D has played an important role in product innovation. In a competitive market
product innovation plays a crucial role in tapping the market potential. It helps in generating higher profit
margins in the long run.

Competitive Factors and Assessment
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End-user Segment Breakdown
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Market Revenue (2012) INR 480 M
INR 2.20 M
Market Size at End of Forecast Period (2017) INR 773 M
10.0%
5

Municipal Packaged Wastewater Treatment Plant Market
- Market Engineering Measurements
TREND

Market Overview
Total Municipal Packaged Wastewater Treatment Plant Market: India, 2012
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0.0
2.0
4.0
6.0
8.0
10.0
12.0
0
100
200
300
400
500
600
700
800
900
2012 2013 2014 2015 2016 2017
Revenue (INR Million) 480 523 573 630 696 773
Growth Rate (%) 9.0 9.5 10.0 10.5 11.0
G
r
o
w
t
h

R
a
t
e

(
%
)

R
e
v
e
n
u
e

(
I
N
R

M
i
l
l
i
o
n
)

Year
Total Municipal Packaged Wastewater Treatment Plant Market: Revenue Forecast
India, 20122017
CAGR = 10.0% (2012-2017)
Revenue Forecast
Key Takeaway: Growth is fuelled by Increasing adoption and government initiative.

43
P71D-15
The market share of municipalities in the packaged segment is 30 percent with a market
size of INR 480 million in 2012.
The major drivers for such systems are small towns that comprise generally of class-II
and class-III cities and villages where wastewater generation is increasing.
The major restraint in the small municipalities is the lack of awareness and lack of
keenness of adoption. They still discharge the wastewater directly into the water bodies
and there are no proper regulatory framework to oversee such environmental
degradation.
Moreover lack of political will and initiative on the part of government has also lead to
slow growth of such systems in municipalities.
But states such as Bihar have taken initiative for providing zero interest loans for waste
water management start-ups. Such steps can go a long way in promoting this huge
market which is almost untapped.

44
P71D-15

INR 2.40 M
Market Size at End of Forecast Period (2017) INR 515 M
10.0%
5

27.1%

Commercial Packaged Wastewater Treatment Plant
Market - Market Engineering Measurements
TREND

Market Overview
Total Commercial Packaged wastewater Treatment Plant Market: India, 2012
45
P71D-15
0.0
2.0
4.0
6.0
8.0
10.0
12.0
0
100
200
300
400
500
600
2012 2013 2014 2015 2016 2017
Revenue (INR Million) 320 349 382 420 464 515
Growth Rate (%) 9.0 9.5 10.0 10.5 11.0
G
r
o
w
t
h

R
a
t
e

(
%
)

R
e
v
e
n
u
e

(
I
N
R

M
i
l
l
i
o
n
)

Year
Total Packaged Wastewater Treatment Market: Commercial Market Revenue
Forecast
India, 20122017
CAGR = 10.0% (2012-2017)
Key Takeaway: Growth is fuelled by green buildings and remote constructions.

Market Revenue Forecast
46
P71D-15
The market share of commercial in the packaged segment is 20 percent with a market
The major drivers for such systems are new hotels and Institutions coming up in class-I
and class-II cities where the rate of technology adoption is pretty high and lot of green
buildings are coming up.
Apart from these many companies like Oviva specialize in setting up packaged systems
in remote areas where there are mining camps, schools, hospitals and residential care
homes.
The commercial market is expected to grow at a CAGR of 10 percent during the five
years from 2012-2017.
The major restraint is in the minds of real estate developers that tend to charge high for
buildings with such facilities whereas such systems on the contrary have very low
operating cost.

Market Revenue Forecast Discussion
47
P71D-15

INR 2.10 M
Market Size at End of Forecast Period (2017) INR 1,637 M
15.4%
5

30.9%

Industrial Packaged Wastewater Treatment Plant Market -
Market Engineering Measurements
TREND

Market Overview
Total Industrial Packaged wastewater Treatment Plant Market: India, 2012
48
P71D-15
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2012 2013 2014 2015 2016 2017
Revenue (INR Million) 800 907 1,039 1,201 1,399 1,637
Growth Rate (%) 13.4 14.5 15.6 16.5 17.0
G
r
o
w
t
h

R
a
t
e

(
%
)

R
e
v
e
n
u
e

(
I
N
R

M
i
l
l
i
o
n
)

Year
Total Packaged Wastewater Treatment Market: Industrial Market Revenue Forecast
India, 20122017
CAGR = 15.4% (2012-2017)
Key Takeaway: Growth is fuelled by Food and Beverage Industries giants.

Industrial Packaged Wastewater Treatment Plant Market
Revenue Forecast
49
P71D-15
The market share of Industries in the packaged segment is 50 percent with a market
The major drivers in the industrial segment are the Food and Beverage Industry which is
expected to witness a CAGR of 25 percent over the next five years from 2012-2017.
Textiles and pharma are also key industries with CAGR of 16 percent and 15 percent
respectively where packaged systems see a huge demand.
The capacity of packaged systems generally installed in pharma industries is of the
order of 200-300 KLD but the quality of water generated is very high. So packaged RO
systems have been used a lot in pharma industry.
Higher capacity systems of 500 KLD are mostly deployed in distillery which presently is
growing at a moderate CAGR of 9 percent.
The overall Industrial market segment is forecasted to grow at a CAGR of 15.40
percent.

Industrial Packaged Wastewater Treatment Plant Market
50
P71D-15
State Suitability and Industry- Breakdown
51
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State Suitability and Industry Breakdown Analysis
Discussion
The top 5 states for implementation of Packaged Systems in Pharma Industry are
Maharashtra, Gujarat, Tamil Nadu, Andhra Pradesh and West Bengal.
The concentration of Pharma Industries are typically high in these states owing to high
population and presence of many multinational Pharma firms.
The required quality of water in Pharma industries is very high which generally suits
packaged RO systems and the general capacity of such systems is of the order of 200-
300 KLD.
The top 5 states for implementation of Packaged Systems in Distillery industries are
Maharashtra, Uttar Pradesh, Andhra Pradesh, Tamil Nadu and Karnataka.
The capacity of systems in distillery industry is very high and can to the order of MLD, so
packaged systems are of the order of 500 KLD.
The top 5 states for implementation of Packaged Systems in Textile industries are
Maharashtra, Gujarat, Tamil Nadu, Rajasthan and Karnataka.
Packaged systems in Textile industry are of smaller capacities and ranges from 100-200
KLD.

52
P71D-15
State Suitability and Industry Breakdown Analysis
Discussion (continued)
The top 5 states for implementation of Packaged Systems in Pharma Industry are
Maharashtra, Delhi, Tamil Nadu, Andhra Pradesh and West Bengal.
The high concentration packaged food industry in Delhi coupled with space constraints
have surged the demand of such systems in these states and union territories.
So finally to arrive at the combined state suitability these five industries where packaged
systems are used have been considered.
The top 5 states where there are highest demand of packaged systems in industrial
applications are Maharashtra, Gujarat, Andhra Pradesh, Tamil Nadu and West Bengal.
The greatest driving force have been the food and Beverage Industry followed by Textile
Industry and Pharma Industry.

53
P71D-15
End-user Segments Overview
54
P71D-15
Construction Industry Overview
Construction
Industry
Real estate
Residential
Commercial
Retail
Hospitality
Special
Economic
Zones
Infrastructure
The Construction Industry is the second largest economic activity of
India after agriculture and has been growing at a CAGR of 11.1
percent over the last eight years.

The Real estate segment contributes to around 76 percent of the
total construction market by GDP.

The booming real estate market has been pegged at 66.80 billion
US$ in 2011 and has been estimated to grow at a CAGR of 20
percent owing to the acute housing shortage coupled with expected
inflow of foreign capital.

The Residential market has a major chunk of around 90 percent in
the real estate market followed by commercial and retail segment
with a share of 4 percent and 2 percent respectively.

The hospitality segment is in very premature stage and is highly
correlated to industrial growth.

The hospitality segment consists of hotels that can be further
categorized into economic and premium hotels.

55
P71D-15
Commercial Segment
Source: ICRA & Frost & Sullivan analysis.
0
50
100
150
200
250
300
2004 2006 2008 2010 2012 2014 2016
L
e
a
s
e

R
e
n
t
a
l
s
(
r
s
/
s
q
f
t
/
m
o
n
t
h
)

Year
Average lease rental :Indian cities(indexed
to 2005)
8
9
12
12
2
19
20
18
Commercial office space absorption: Indian cities,
rating,2012 (%)
Pune
Mumbai
Chennai
Kolkata
Hyderabad
NCR
Bangalore
Others
The commercial office market is fragmented with very few big players.

The demand for office space is increasing more in Kolkata and Tier-II cities owing to high rental
prices in Mumbai and other region.

Presently the supply outstrips demand as in the year 2013 the demand is expected to be around
55 million square feet whereas the supply figures soared to 180 million square feet.

In the coming years the supply demand gap is expected to narrow down to increase the
occupancy rates to around 90 percent by the end of 2014 which would lead to new projects in
commercial office segment.
56
P71D-15
Retail Segment
0
2
4
6
8
10
12
2010 2011 2012 2013 2014
Demand Projections Across top 7
cities(million square feet), India, 2012
0
1
2
3
4
5
6
7
8
9
Demand Analysis of Top 7 cities(million
square ft.), India, 2010-2014
Demand for retail space grew from 4 million square feet in 2010 to 11 million square feet in 2011.
The Indian retail market stands $500 billion presently which is expected to rise to $900 billion by
2020.
Organized retail is expected to increase from $25 billion to $250.00 billion by 2020.
The retail industry is expected to grow at a CAGR of 14 percent in the short term and 19 percent in
the next 5 years.
The Emergence of foreign direct investment in retail sector would open the gateway for mega retail
outlets which would lead to a spurge in the construction of hyper markets and supermarkets.
Presently there are 59 malls in the construction phase and most of them are concentrated in the
NCR, Bangalore and Chennai.
Apart from these many new retail projects are coming up in TIER-II cities but they are being
developed by local developers.

57
P71D-15
Hospitality Segment
Group Existing Hotels Planned Hotels By
Marriot international 18 80-100 2015
Hilton worldwide 8 50-100 2016
Intercontinental Hotels Group 12 150 2020
Accor group 13 90-100 2015
Choice hotels international 27 100 5-7 years
The growth in hotel industry is directly linked to tourist industry and industrial growth. The tourist
industry is growing at a CAGR of 5 percent and the trend is expected to be stable and continue.
Presently there are around 1,70,000 hotel rooms in India across all segments of which 60,000 are
branded and around 60,000 hotel rooms are expected to be added in the next 3-5 years.
Almost all major hotel groups are having huge expansion plan and aim to increase their numbers by
five times in the next five years.
The occupancy rates of premium hotels which dropped below 50 percent during 2008 has picked up
to touch the Asia average of 75 percent.
Private equity players are more interested in Mid- size and budget hotels that work on asset light
models rather than asset heavy models that take huge time to become profitable.
Easier financing, public- private partnership are the key drivers whereas execution delays and
soaring interest rates are the major constraints.

Hotels & their Expansion plans, India, 2012
58
P71D-15
Food Processing & Beverage Industry overview

Source: Ministry of Food Report & Frost & Sullivan analysis.
Food
Processing
and
Beverage
Industry
Meat, Fish,
Fruit &
vegetables
Dairy Products
Grain mill,
starch and
animal feeds
Bakery, sugar,
cocoa, cereals
and similar
products
Beverages
including soft
drinks, alcohol
etc.
Among all the sectors the Dairy
and fruits and vegetables sector
is oligopolistic with Herfindahl
Hirschman index between 0.2-
0.7.
Delhi, Maharashtra, West Bengal
& Tamil Nadu comprise of 53%
of Beverage industry.
Fish & fruits & vegetables export
is declining due to increasing
local consumption. In fact the
growth rate of this sector has
been low to meet the increasing
demand.
Dairy giants like Gujarat
cooperative milk marketing
federation that markets the Amul
brand has extensive plans to
inject Rs. 3000 crores over the
next five years in the dairy
industry.
Classification of Food & Beverage Industry, India, 2012
59
P71D-15
Food Processing & Beverage Industry overview(cont)
India holds a prominent position in the production of agricultural, horticultural and dairy
products but the processing industry is ate very low levels of 2.2 percent compared to
European and U.S counterparts.
India currently ranks at the bottom for the processed food sector and is essentially a net
importer as per trade competitive map.
The Indian food market is estimated to be around $69.4 billion of which value added food
products comprise of only $22.20 billion.
The food processing industry is witnessing an annual growth of 20 percent and the
demand is expected to double by 2020.
The processed food industry is derived from agro products and incurs taxes at multiple
levels. This multiple taxing combined with varying tax rates across states is a barrier in
food processing industry.
Another critical restraint in food processing industry is the lack of refrigerated food
storage facilities which is in dismal condition and also highly priced which is reflected
from the fact that 20 percent of the potato cost is attributed to refrigeration.
Foreign direct investment in food and retail sector would play a big role in eliminating the
restraints and leading to robust growth of this industry segment.
60
P71D-15
Pharma Industry overview

Source: Economic Times & Frost & Sullivan analysis.
The global pharma industry are fragmented between high growing developing
markets and slowly growing developed markets.
India ranks third largest by volumes and tenth largest by value.
The market is expected to grow at 12-14 percent CAGR to become a $20-$24 billion
market by 2015.
The key drivers propelling the market are rising incomes, enhanced medical
infrastructure, rise in prevalence and treatment of chronic disease, greater health
insurance coverage, launches of patented products and new market creation.
The launch of branded generics and significant expansion of market coverage by
multinational coupled with mergers and acquisitions illustrate the new market
creation.
The tier-I and tier-II cities would lead the growth baton as health insurance
penetration to increase to 45 percent of population by 2020.
The health care spend by both central and state governments have shown increasing
trend with a CAGR of 18 percent.
Measures like 100 per cent foreign direct investment(FDI) in the pharmaceutical and
drugs sector and the establishment of pharmaceutical special economic
zones(SEZs) have attracted global pharmaceutical MNCs to India.
61
P71D-15
Distillery Industry overview

Sugar,
molasses
Alcohols,
ethanol,
methanol
,etc.
Distillery
Industry
Presently in India there are 579 sugar
mills and 325 distilleries(alcoholic,
ethanol, etc.) in India.
There are two categories of water
treatment facilities required in
distilleries, one water treatment and
the other wastewater treatment.
Currently about 45.72 million metre
cube of spent wash is generated
annually from distilleries alone in India.
Most of the distilleries are located around Uttar Pradesh, where there are high
concentration of sugar mills because of the ready availability of sugarcane.
The decontrol of sugar industry and abolition of release order mechanism would allow
the sugar mills to set up the selling prices thus making it more profitable for new
entrants.
Moreover if any entity wants to establish new sugar mill or wants to expands their
existing capacity, it will be given rebate on land registration fee and stamp duty.
Such measures make Uttar Pradesh and Maharashtra a prime location for distillery
industry growth thus opening the gate ways for packaged wastewater treatment
systems.

62
P71D-15
Textile Industry overview

Source: Textile Ministry Report & Frost & Sullivan analysis.
73
8
11
6
2
Break up of textile companies, India,
2012
Cotton
Manmade
Blended
Silk
Others
0
10
20
30
40
50
Diversify New market &
Market related
Plans
Capacity
Expansion
Future Plans of textile industry break down,
India, 2012
The Indian Textile and apparel industry is estimated to be around $36 billion in the year 2012
accounting to around 15 percent of Indias exports.
The textile industry is expected to grow at a CAGR of 16 percent per annum for the next five years.
Presently Indias share in Global textile industry trade is 3 percent and the government aims to
increase it to 10 percent by allowing 100 percent Foreign direct investment in the textile sector and
executing technology mission on cotton.
22 percent of the companies have shown revenue growth up to 30 percent in the last couple of
years.
The major hindrances faced by the textile industry are Infrastructure, taxes and duties and lack of
government subsidies.
50 percent of the sample companies are private limited, 10 percent are public limited, 26 percent are
partnerships and 14 percent are proprietary firms.
40 percent of the private limited companies are in the turnover bracket of Rs 40 million 100 million.
About 22 percent of the private limited companies are in the turnover bracket of Rs 100 million 250
million.

63
P71D-15
The Last Word
64
P71D-15
The Last WordThree Big Predictions
2
Mergers and Acquisitions are anticipated to give access to superior
technology for small companies.
3
RO based packaged systems would gain immense popularity in the next
five years.
1
Food and Beverage, Pharmaceuticals and Textile industry will be the most
promising industrial segment for packaged wastewater systems. In hotels
and Institutions green buildings would be a thriving market for packaged
systems.
65
P71D-15
Legal Disclaimer
Frost & Sullivan takes no responsibility for any incorrect information supplied to us by
manufacturers or users. Quantitative market information is based primarily on interviews
and therefore is subject to fluctuation. Frost & Sullivan research services are limited
publications containing valuable market information provided to a select group of
customers. Our customers acknowledge, when ordering or downloading, that Frost &
Sullivan Research Services are for customers internal use and not for general publication
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disclosed to noncustomers without written permission. Furthermore, no part may be
reproduced, stored in a retrieval system, or transmitted in any form or by any means,
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publisher.
For information regarding permission, write to:
Frost & Sullivan
331 E. Evelyn Ave. Suite 100
Mountain View, CA 94041
66
P71D-15
Appendix
67
P71D-15
Market Engineering Methodology
One of Frost & Sullivans core deliverables
is its Market Engineering studies. They
are based on our proprietary Market
Engineering Methodology. This approach,
developed across the 50 years of
experience assessing global markets,
applies engineering rigor to the often
nebulous art of market forecasting and
interpretation.
A detailed description of the methodology
can be found here.
Source: Frost & Sullivan research.
68
P71D-15
List of Companies Included in the Others Category

GE Water
Siemens Water
Doshion Veolia
Nilson Nishotech
Grey Water Solutions
Permionics
Trans Organics
Watertec Enterprises
UEM India
Chemtronics

69
P71D-15
Partial List of Companies Interviewed
Ion Exchange
Aquatech Systems
Siemens
Aquadesigns
Driplex
Thermax
Degermont
Shubham Inc.
Marcus Water Treatment
RO Chem
Neela Systems
70
P71D-15
Acronyms and Abbreviations Used
Abbreviations & Acronyms Full Form
BOD Biochemical oxygen demand
CAGR Compound Annual Growth Rate
CAPEX Capital Expenditure
CL Chlorination
CPCB Central Pollution Control Board
FDI Foreign Direct Investment
FMR Fluidized media reactor
GDP Gross Domestic Product
INR Indian Rupees
MBBR Moving bed biofilm reactor
MBR Membrane bioreactor
MOFPI Ministry of food processing industries
N No
NA Not Applicable
Pharma Pharmaceutical
R&D Research and Development
71
P71D-15
Acronyms and Abbreviations Used(cont)
Abbreviations & Acronyms Full Form
RO Reverse osmosis
SBR Sequencing batch reactor
SS Suspended solids
STP Sewage treatment Plant
UASB Upflow anaerobic sludge blanket
UF Ultrafiltration
USD United States Dollar
UV Ultraviolet
Y Yes
72
P71D-15
Additional Sources of Information on Environmental
Technologies and Frost & Sullivan
Frost & Sullivan's Environmental Technologies Research and Consulting practice is part of
Environmental and Building Technologies Practice
http://www.frost.com/prod/servlet/svcg.pag/EVEV
http://www.frost.com/prod/servlet/svcg.pag/EV00
Join Frost & Sullivans Global Community of Growth, Innovation, and Leadership
http://www.gil-global.com
Previous Analyst Briefings
http://www.frost.com/prod/servlet/analyst-briefings.pag?ref=RHC
Past Webcasts
http://www.frost.com/prod/servlet/cpo/180011605
73
P71D-15
Learn MoreNext Steps
Analyst Briefings
http://www.frost.com/prod/servlet/our-services-page.pag?mode=open&sid=178041065
Growth Workshops
http://www.frost.com/prod/servlet/growth-workshops.pag
Growth Excellence Matrix
http://www.frost.com/prod/servlet/growth-ex-matrix.pag

74
P71D-15
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