The Jhunjhunwala Effect: How Two Companies Are Shaping India’s Infrastructure and Water Future

The late Rakesh Jhunjhunwala, often dubbed India’s Warren Buffett, left behind an investment legacy that continues to shape corporate India. Two of his portfolio companies—NCC Limited and VA Tech Wabag Limited—are currently riding a wave of success, fueled by substantial order wins and strategic expansions. Their recent performance offers a glimpse into India’s infrastructure and water technology sectors, revealing how visionary investments can translate into real-world impact.

NCC Limited: Building the Future, One Contract at a Time

NCC Limited, a civil construction giant established in 1978, has emerged as a standout performer in India’s infrastructure landscape. The company’s expertise spans turnkey Engineering, Procurement, and Construction (EPC) contracts and Build-Operate-Transfer (BOT) projects, covering everything from roads and buildings to irrigation and environmental projects.

The company’s order book has swelled to an impressive Rs 57,536 crore, a testament to its ability to secure large-scale contracts. A particularly notable achievement was the Rs 20,187.50 crore in new orders secured in March 2025, including a significant contract from the Andhra Pradesh Capital Region Development Authority for infrastructure development in Amaravati. This momentum continued with Rs 1,236 crore in orders from state government agencies in August 2024 and Rs 2,269 crore from the Mumbai Metropolitan Region Development Authority (MMRDA) for the Mumbai Metro Line 6 project.

NCC’s financial performance has mirrored its contract wins, with a 111% jump in Profit After Tax (PAT) and a 110% dividend announced, contributing to a stock price surge of over 9% in some instances. The company’s ability to secure government contracts underscores its position as a key player in India’s infrastructure development, a sector that is expected to grow exponentially in the coming years.

VA Tech Wabag: Turning Water Scarcity into Opportunity

VA Tech Wabag Limited, a leader in water technology, has also experienced considerable success, driven by a growing global demand for water treatment and desalination solutions. The company’s order book currently stands at Rs 14,263.4 crore, bolstered by recent contracts from prominent Indian entities like GAIL (India) Limited and Indian Oil Corporation Limited (IOCL).

However, Wabag’s ambitions extend far beyond domestic borders. The company has successfully penetrated the Middle Eastern market, winning a Rs 2,332 crore contract for a 300 Million Litres per Day (MLD) Sea Water Reverse Osmosis (SWRO) mega desalination plant in Yanbu, Saudi Arabia, and a USD 33.5 million contract to build an industrial wastewater treatment plant for Saudi Aramco. Further expanding its international footprint, Wabag secured a Euro 78 million DBO contract in Zambia for wastewater treatment plants, funded by the European Investment Bank (EIB) and Germany’s KFW.

To support its ambitious growth plans, Wabag has entered into a non-binding term sheet for a “Municipal Platform” with an investor consortium, aiming to attract USD 100 million in equity investment over 3-5 years to develop capital projects in the municipal water sector. The company also recently secured a Rs 1,000 crore order from Indosol Solar for a desalination project, demonstrating continued momentum in the desalination segment.

The Jhunjhunwala Legacy: A Blueprint for Success

The success of both NCC and VA Tech Wabag is not merely attributable to favorable market conditions. Strategic diversification and a focus on sustainable infrastructure solutions appear to be key drivers. NCC’s broad portfolio, encompassing various construction segments, allows it to capitalize on diverse opportunities within the infrastructure sector. VA Tech Wabag’s specialization in water technology positions it to benefit from the increasing global focus on water scarcity and the need for advanced water treatment technologies.

The backing of the Jhunjhunwala family, known for their long-term investment horizon and astute market understanding, has undoubtedly provided these companies with stability and credibility. Rekha Jhunjhunwala’s continued confidence in these companies, reflected in her portfolio holdings, further reinforces investor sentiment.

A Glimpse into the Future

The recent performance of these companies highlights a broader trend of growth within the Indian infrastructure and water technology sectors. Government initiatives promoting infrastructure development, coupled with increasing private sector participation, are creating a favorable environment for companies like NCC. Similarly, growing awareness of water conservation and the need for sustainable water management solutions are driving demand for VA Tech Wabag’s expertise.

The substantial order books and strategic partnerships secured by these companies suggest that their growth trajectory is likely to continue in the coming years, potentially offering significant returns for investors and contributing to the overall economic development of India and beyond. The consistent contract wins and financial performance demonstrate the strength of the underlying businesses and the effectiveness of their strategic approaches, solidifying their positions as key players in their respective industries.

As India continues to urbanize and industrialize, the demand for infrastructure and water solutions will only grow. Companies like NCC and VA Tech Wabag, backed by visionary investors like the Jhunjhunwalas, are well-positioned to meet these challenges head-on, turning them into opportunities for growth and innovation. The future, it seems, is being built—and purified—one contract at a time.