Shares of Ion Exchange (India) hit a new intraday high of Rs 2,949 on Tuesday, up 1.5% on the BSE. Shares surged 6% in the past two days after the company announced it had secured a contract worth Rs 343.36 crore from Indian Oil Corporation (IOCL) to build a zero liquid discharge plant at the Panipat refinery. The S&P BSE Sensex was down 0.41% at 62,578 at 10:27 am.

“IOCL awarded the company a five-year contract for the design, engineering, manufacture, supply, installation, testing, pre-commissioning, commissioning, performance assurance commissioning, operation and maintenance of the Panipat Refinery Zero Liquid Discharge Plant for the value of the contract, including goods and services Rs 343.36 crore and tax,” Ion Exchange said in an exchange filing on Friday. The company said the project would start production within 16 months of winning the bid.

Ion Exchange (India) offers a wide range of water cycle solutions from pre-treatment to process water treatment, wastewater treatment, recycling, zero liquid discharge, sewage treatment, packaged drinking water, desalination, etc.

The company also produces resins, speciality chemicals for water and wastewater treatment, and non-aqueous applications. The company’s water and environmental management solutions extend from the industrial sector to homes, hotels, spas, educational institutions, hospitals, laboratories, real estate sectors, defence agencies and rural communities, providing safe drinking water and a clean environment.

Shares of Ion Exchange have risen 41% over the past month, compared with a 2.7% gain in the S&P BSE Sensex.

Energy transition and adaptation to the environment will be one of the pillars of India’s development and growth agenda. The Government of India has prioritised allocating substantial domestic financial resources to develop indigenous energy transition and resilience by providing PLI for domestic integrated solar manufacturing facilities, green hydrogen production, fuel blending, and encouraging biomass pellets in thermal power plants. These moves to reduce carbon intensity in line with COP26 commitments bode well for large-scale investments and projects.

Businesses are increasingly aware of the importance and benefits of incorporating water sustainability into their strategies and sourcing appropriate resources for wastewater treatment, recycling and zero liquid discharge. Across the globe, customers increasingly prefer integrated water resource and environmental management solutions. In its FY22 annual report, Ion Exchange said that the industry’s export of engineered products, custom EPC projects, resins, water treatment chemicals, membranes and services is a significant revenue generator.

Furthermore, achieving carbon neutrality, net zero goals and national commitments to COP26 emission targets will accelerate the demand for innovative, efficient, green technologies based on carbon neutral water-energy nexus.

These will likely drive the demand for innovative water treatment technologies, mature EPC, and O&M capabilities. As a result, the Indian water and environment industry is expected to grow at a healthy CAGR of 8.5% between 2022 and 2026, the company said.