The union budget announced a capital outlay for infrastructure at INR10 lakh crore (3.3% of GDP). Significant urban infrastructure expenditures planned in the infrastructure and development budget 2023 have a multiplier effect across sectors and set a strong footing for resilient economic growth.
Further, a dedicated amount of INR 10,000 crore per annum has been allocated through urban infra-development funds for tier II and tier III cities, which will result in quality urban infrastructure and a higher standard of living for citizens. This will also translate into higher demand for housing and commercial real estate. The urban infrastructure comprises drinking water, sanitation, sewage systems, electricity and gas distribution, urban transport, primary health services, and environmental regulation.
Stocks to watch out for
Va Tech Wabag Ltd: 98-year-old VA Tech Wabag was founded in its current headquartered site in Vienna, Austria, and has its Indian headquarters in Chennai. Being the market leader, the company is spread across four continents providing wastewater solutions. Wabag is known for its wastewater services including sludge treatment, seawater desalination, and industrial water treatment.
Thermax Ltd: Thermax India is a wastewater treatment company in India. It is based in Pune, Maharashtra, and provides a quick fix to both industries and Municipal Corporations for wastewater ailments. Solutions for heating, cooling, water, and waste management, as well as specific chemicals, are among the company’s offerings. Massive furnaces for steaming and power generation, complete power plants, industrial and municipal wastewater treatment facilities, waste heat recovery systems, and air pollution control projects are among the services provided by the organization.
Ion Exchange (India) Ltd: Ion Exchangeis a popular water treatment company earlier based in the UK, now having headquarters in Mumbai Maharashtra. It provides wastewater solutions in areas like domestic wastewater, industrial wastewater, institutional wastewater, and commercial wastewater. The company has made significant strides toward R&D and is affiliated with leading global water treatment companies. It encompasses numerous facilities including wastewater treatment, water recycling, and product regeneration.
BEML Ltd: BEML Limited (formerly Bharat Earth Movers Limited) is a public sector undertaking for the manufacture of Rail Coaches & Spare Parts and Mining Equipment.
Larsen & Toubro Ltd: Larsen & Toubro Limited operates in technology, engineering, construction, manufacturing, and financial services with global operations. The Company addresses critical needs in key sectors like Hydrocarbon, Infrastructure, Power, Process Industries, and Defence for their customers in over 50 countries around the world.
Siemens Ltd: SIEMENS offers integrated solutions for industrial applications for manufacturing industries, drives for process industries, intelligent infrastructure and buildings, efficient and clean power generation from fossil fuels and oil & gas applications, transmission and distribution of electrical energy for passenger and freight transportation, including rail vehicles, rail automation, and rail electrification systems.
ABB India Ltd: The company undertakes engineering and construction projects and manufactures heavy engineering and industrial equipment. It has four customer-focused, globally leading businesses in Electrification, Industrial Automation, Motion, Robotics & Discrete Automation, supported by the ABB Ability digital platform.
Tube Investments of India Ltd: Tube Investments of India Limited is an Indian engineering and manufacturing company specializing in bicycles, metal-formed products, and chains. It is based in Chennai and is a part of the Murugappa Group.
CG Power and Industrial Solutions Ltd: CG manufactures a wide range of power and distribution transformers, extra high voltage (EHV) and medium voltage (MV) circuit breakers, switchgear, EHV instrument transformers, lightning arrestors, isolators, and vacuum interrupters.
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– Debraj Guha Thakurta & Nischay Avichal