Sources inform ''Globes'' that Shari Arison's water venture plans to focus on the prevention of water leaking niche market. Water leakage from pipelines is a major problem in the industry. 30% of drinking water worldwide is lost through leakage from pipelines. The loss in Israel is 9%.
It seems that every water industry company is seeking a niche of its own for investment, in order to differentiate itself from its peers, and to create leadership and added value over other companies. Whitewater, organized by chairman Ori Yogev, is focusing on water security and quality, for example.
The sources added that Arison's water venture is building an international group, and is on a buying spree of companies for this purpose. A source said, "They're buying companies at a rate of one a month."
The biggest acquisition to date is Dorot Water Technologies Ltd. It turns out that Arison was not interested in the company's core business of water valves, but in a new division which is developing anti-leakage solutions. Arison apparently plans to utilize Dorot's global distribution as a core infrastructure for the water venture. The venture is also acquiring companies with leakage monitors and locating technologies and methods for reducing leakage.
Published by Globes [online], Israel business news - www.globes-online.com - on May 18, 2008
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