Denta Water & Infra Solutions outlined its end-to-end approach to water management, focusing on supply, treatment, and groundwater recharge to drive long-term sustainability. The company highlighted strong execution capabilities, a robust order book, and increasing use of technology to enhance efficiency. With a growing project pipeline, it aims to scale while strengthening its position in India’s water infrastructure space.
Sheryll D’Souza: Hello and welcome to this very special edition of Small Cap Spotlight with me Sheryll D’Souza and today we are going to be joined by a company which is into a very neat segment that is into the water treatment segment. It is Denta Waters. We are joined by C. Mruthyunjaya Swamy who is the executive director and the chairman of the company who is joining us right now on this very special edition of SmallCap Spotlight.
Thank you so much sir for joining us and firstly let’s talk about your company that is Denta Water. It operates in a space that is critical but rarely understood. In simple terms if you help us understand what problems are you really solving for Indian cities as well as for Indian industries.
C. Mruthyunjaya: I am chairman of Dentawater and Infra Solutions Limited. Our company is headquartered in Bangalore. It has gone recently public exactly to be on 29th January 2025.
It raised a fund of fund to the tune of around 220.50 crores. Our company specialises in civil infrastructure and our key focus is on water-based infra solutions. Right now we are doing many projects wherein we are recharging the groundwater with secondary treated sewage water.
We are also supplying fresh water to rural and urban habitations and also we are venturing into treatment of sewage water which is generated out of the water which we supply to the mankind. And also we do provide clean drinking water and the sewage water which gets excited from the mankind will be treated to the acceptable standards. So we are aiming for end-to-end connection that is getting the water either from ground or from river or from dams and we are also allowing the water to flow into the households and the sewage which gets generated is being treated and the treated sewage water is being recharged into the groundwater that I will explain in detail.
With this end-to-end solution whatever water we are drawing out will be put back into the ground and also into the water bodies so that the water sustainability will be there for all ages to come.
Sheryll D’Souza: Right so if you talk about your business your work spans from EPC to design as well as operations so if you could tell us what part of the business actually truly drives value today and also help us understand why is that so.
C. Mruthyunjaya: Water is a very critical component for existence of mankind as it is many states and most of many districts in state of Karnataka are dependent only on groundwater.
They take out the water from the ground through tube wells and bore wells use it for mankind for treatment for drinking for their daily household needs but this water is very limited. We have to ensure that whatever water we extract out of the ground should be repumped back into the system. Earlier sewage water which was being generated was being let out into waste as in waste to join river water.
We modified it we made the sewage water to be treated and treated sewage water which is swift for groundwater recharging is being pumped back into the ground. So in this way the critical component of humankind that’s water will not go waste it will be extracted it will be utilised once it is utilised sewage water will be treated and once treated it will be put back into the ground so that sustainability will be in long term and our company is focused on as I said earlier treatment of water supply of water generation of sewage water treatment of sewage water and after treatment groundwater recharging projects are there in our company’s focus area. So in this way we ensure that ESG principles are fully accepted.
I mean we provide access to clean water we provide good sanitation facilities and once sanitary water is generated we ensure that it doesn’t pollute the environment and our environment remains clean which will be good for the mankind in future.
Sheryll D’Souza: So water projects if you talk about it is very notorious especially when you talk about delays over the matter of fact even cost overruns. What have been the hardest execution lessons that you have actually learned on the ground?
C. Mruthyunjaya: We are already a nine-year-old company we have executed around 55 projects as on today mainly focused on water-based infra solutions of groundwater recharging and water treatment.
We ensure that once the projects are won by us on tender basis we ensure that good designs are prepared. Our design team is very strong. Once the design is completed we ensure that that design will get incorporated into the ground.
While incorporating it into the ground we ensure that at the ground level our engineers work round the clock ensure that whatever hurdles like land acquisition or permission from local authorities are all attended on top reality. Once the permissions and clearances are obtained we ensure that good raw materials are sourced from reputed manufacturers. We have got long-term understanding and tie-ups with pipe manufacturers like Jindal, Tata and Wellspun and also with pump manufacturers like Flowmore and also with HDPE pipe manufacturers like Delta Irrigation and also Mangalam pipes and also we have got long-term relationship with cement companies like JK Cement, JSWO and for steel we source from JSWO.
With the timely delivery of the raw materials our team at ground ensures that all the projects are implemented in time and also we ensure that since the projects are eligible to climb mobilisation advance we ensure we get the mobilisation advance in time put it for project use and ensure that the projects get off the ground very quickly and once the projects are implemented we ensure that whatever mobilisation advance we have avoided will also be cleared in due course of time and also with minimum depth requirements we do ensure that there is there will not be any financial overrun on the projects.
With all these ideas in mind with all these concepts being put into use our company is able to complete almost all the projects in a timely manner and also since our projects are having long-term maintenance contract of around five years we ensure that the work is of good quality and our maintenance costs are kept to the minimum and once we complete and run the scheme and hand over to the concerned local authorities they are also happy they ensure that we get repeated orders like in irrigation, mining irrigation, urban water supply department and rural water supply department. In this way our company is progressing well and we aim to grow much bigger in scale and also in revenue.
Sheryll D’Souza: Right, so that actually brings me to my next question how do you decide which projects to pursue and which ones actually that you should consciously walk away from?
C. Mruthyunjaya: Our company portfolio accommodates all three kinds of projects basically there will be short-term projects which involve execution to the tune of six to nine months and medium-term projects one year to one and a half years and long-term projects of one two to three years. Our portfolio ensures mix of all three so that the small projects can be completed with minimum cost and we achieve good revenue within six to nine months and as far as all these projects are concerned before we bid for the tender we actually visit the spot we do our own recognition survey we identify the cost which is involved we identify the revenue which is going to be generated so that our projects remain profitable and they should be easy to execute and they should be easy to maintain also in long term. In this way almost all our projects are being completed on time with good maintenance also being done so that the projects are appreciated well by the local authorities.
Sheryll D’Souza: So, if you could tell us what differentiates Denta Water when it comes to competing against much larger EPC players or actually talking about aggressive low cost regional contractors.
C. Mruthyunjaya: Our company is handling both water supply projects and also sanitary treatment projects. Water supply projects actually I can tell you one example where we implement we are implementing or providing water supply scheme to 108 habitations in Koppal Taluk.
The work involved construction of jack well on backwaters of Tungabhadra dam. As you know Tungabhadra is a major reservoir bordering Karnataka and Ramana Pradesh which stores around 108 TMC of water every year. We got an opportunity to start the work in the month of January.
We identified the site we cleared all the obstacles we started considering we had to construct one very deep well so that we can draw the water. So, we started in the month of February of 2025 and we were able to complete the entire project before May 2025 before the dam got rain water. So, in this kind of challenging task we identified when to start the work and in the intervening period which we get probably 3 to 4 months and backwaters of a big dam like Tungabhadra dam with our efficient project management personnel we were able to complete the jack well.
But in the adjoining reaches where major infrastructure players are constructing the dams they have taken much longer period. I should not disclose the names since it is ours is a publicly listed company. I can send you details if you want along with photos.
So, in this way we will be able to complete some critical components. Apart from this whenever we had to lay the pipeline to draw the water or to draw the sewage line we do regularly interact with local authorities and with their active cooperation we do ensure that no land acquisition hurdles are created and we will be able to complete the projects in time. So, in this way since our project team is very good and also since we are mid-cap company we will be able to concentrate on critical components with good timely decision by our management and ensure that all the works are completed on time.
In this way we are doing better work when compared to some other major players who do take much longer time. I don’t say it will be much delay we do complete the project in our own project timeline so that the authorities do appreciate the value of the company do appreciate the work which is being done by the company.
Sheryll D’Souza: So, now let’s talk about numbers and that brings me to the most pertinent question if you could talk about your current order book.
How strong is your current order book and what kind of revenue visibility does it actually give you over the next year?
C. Mruthyunjaya: Our order book is very strong as on today our outstanding order book as on 31st December is 8414.82 million. Apart from our strong order book we do get incremental work orders every month and every quarter and right now we are having around 18 water management projects valued at 6582.29 million, 4 road projects valued at 83.15 million, 2 railway projects valued at 193.55 million and 2 irrigation projects valued at 1556.68 million. As you can see 80 to 83 percent of our focus area is only on water-based infra solutions and incidentally when we do projects we do get some road works or some railway works near our project site which we try to capture so that our manpower can be utilised better since they will be involved in water-based infrastructure projects.
They can also handle some small roads or railway project. In this way our order book is diversified and also we get timely revenue out of these projects and also our focus will be for next to next 3 to 5 years to capture much more orders basically in water management and sewage treatment plant. Incidentally we got around 4 projects in the month of November and December valued at 1063.38 million which we have already reported to the authorities and details are available even in our website.
So in this way our company is having healthy order book and also we do get incremental work orders in coming months and ensure that our revenue projections are fulfilled in much bigger way. Staying with some numbers then working capital actually that can make or break infrastructure companies.
Sheryll D’Souza: How do you manage the cash flows in such a business where you know payments are often delayed?
C. Mruthyunjaya: In this year fortunately we got access to the public funds to the tune of 220.50 crores in which 150 crore was earmarked for working capital deployment and we have utilised the entire amount within 8 months and we have ensured that all our projects are completed in time-bound manner.
Apart from this we have got sufficient cash balance also so that our projects are not held up and as I told earlier we have got long-term understanding with reputed manufacturers like Jindal and Tata who do supply materials with a favourable payment terms and conditions. We do take materials and ensure that the payment is made within 30 to 45 days as per agreed terms and conditions without incurring any extra cost on account of interest or other expenses. Apart from this we have got access to Tata Capital who have forwarded an advance of around 5 crore and also we have got long-term understanding with our bankers like SBA and Kotak Bank who have given both fund-based and non-fund-based credit facility.
With all these we ensure that none of our projects are delayed for want of funds and all our projects are running as per schedule and as it is our projects are mostly concentrated in Jaljeevan Mission, Amrut and KUADFC that is Karnataka Urban Infrastructure Development Finance Corporation which is implementing Swachh Bharat Programme. All these three funds are either fully supported by Government of India or partly supported by Government of India and with timely flow of funds from Government of India we have not seen any delay in receiving the payments and our projects are running on good financial strength. Right.
Sheryll D’Souza: So, technology and regulations these are changing fast and it is not changing fast for other sectors, it is also changing fast for water treatment. So, where is Denta Water investing in order to stay relevant over the next decade?
C. Mruthyunjaya: In water treatment in one of our projects earlier they had a water treatment plant of 17.5 million litres of water to be processed. We searched out with good technology partners and we ensured that with available infrastructure only by doing tube settler technology we were able to increase the efficiency of the treatment plant to 31 MLD.
So, in this way the technology plays a very important role in water treatment. Even in sewage treatment also we are implementing new technology like SCBR technology and canvas based technology in which 98 percent of the water impurities will be purified and the purified water can be let out into water bodies directly and we are searching out for all new technologies and we are partnering with new technology providers and also and ensure that our products are ahead of the time. In this way we will be helping the mankind to get clean water and also ensure that sewage water thus generated thus gets treated which can be pumped back into the water bodies and it can reach at the groundwater.
Sheryll D’Souza: Right Mr. Swamy now looking beyond the numbers what kind of execution culture are you trying to build within the organisation?
C. Mruthyunjaya: Timely identification of the problems which we face in the execution of the projects. Right now as I told you some new projects have come in and our team are touring almost all the project sites identifying what all should be done and also we are identifying in design how we can economise on the cost. So, in this way our team project management team is able to ensure that the projects are started with good design easy to implementable drawings and also ensure that timely execution of the projects will be completed.
In our engineering projects there will be many challenges we may get waterlogged areas, we may get rocks, we may get loose soil for which we have got some specialised treatments like in one of the sites we encountered a construction of a compound wall wherein a black cutter soil was observed. We got hold of a very good design where we implemented bulb technology wherein the foundation will be expanded at certain specified depths so that there will be economy in foundation and also stability structure will be accorded top priority. So, in this way our team will be able to solve any complex problem which may arise in the execution of the project which will ensure that the projects are completed in timely manner in cost effective.
Sheryll D’Souza: Right and moving on then and lastly how can I not ask you this question five years from now how do you define success for Denta Water beyond just scale or even revenue growth for the matter of fact.
C. Mruthyunjaya: We aim to grow big we want to capture good projects with good profit margin and ensure that our order book remains strong and also we want to ensure that technology is put in place and from five year down the line our company should be noted in the Indian infrastructure market wherein any solution for water or for any other matter for any other construction projects I should be the one-stop solution our Denta should provide solution to each and every client department or organisation who may like to avail our services. We plan to grow much bigger and also try to achieve very good revenue in coming years.
Sheryll D’Souza: Right on that note thank you so much Mr. Swamy for being part of this very special edition of small cast spotlight for shedding light on your company Denta waters to help us understand how do you actually go through the regulations and what the scenario is on ground for your company and for your sector. Thank you once again thank you for joining us on the show.