2018 Integrated Report
business review
Evolving customer needs, increasing demand, and a competitive market environment require an innovative mindset and entrepreneurial approach. Since its inception, Manila Water Total Solutions (MWTS) has served as an incubator of new business opportunities throughout the water cycle, marked by smarter design and technological innovation. As business lines mature and evolve, these are eventually spun-off to support and add value to existing businesses in the Enterprise.
Focused on developing innovative water supply, used water, and environmental services, MWTS is driven by its core strategy to provide broad expertise on after-the-meter services, in line with its being a driver of Manila Water’s vertical business growth. The company develops both end-consumer and system solutions in the water and used water value chain, which are then delivered at scale and with a commitment to protecting the environment. Specifically, these include provision of network and technical services under its Corporate Accounts Management (CAM) business, and the sale of packaged purified water through the Healthy Family brand.
CORPORATE ACCOUNTS MANAGEMENT: DEVELOPING INNOVATIVE MODELS
Today, modern and dynamic communities—whether in townships or high rises—look for ways to better manage resources like water and energy without sacrificing efficiency and quality.
In line with this, CAM offers solutions for the water and used water network needs of its clients, mainly property developers. These services include master planning and design, water and sewer pipelaying, integrated used water solutions, and construction management.
The primary service of CAM is pipelaying for horizontal developments and townships, providing sustainable solutions to its customers through the design and construction of water, used water, and gray water networks. In 2018, pipelaying ended with revenues of ₱211 million, down by 57 percent from ₱492 million* in 2017 due to delayed project execution. The business will continue to work on streamlining its methods as it anticipates sustained growth aided by a resurgent property development business climate in the coming years.
Another service of CAM is Integrated Used Water Solutions (IUS), which addresses the unserved market of used water management services. Its primary clients are major land developers, commercial and industrial customers, as well as utilities companies since being launched and commercialized in 2015.
IUS provides holistic customerspecific solutions that have been developed through value-engineering and integration of different technologies. This further supports customers from the commercial and industrial sectors that continue to struggle with finding sustainable but cost-effective means to comply with environmental regulations. This is important especially in the absence of available sewer networks from public water utilities across the country.
At the end of 2018, IUS posted revenues of ₱117 million from ₱16 million the previous year, as it continues to explore more opportunities in the field of design and build technical services and environmental technologies integration for its key clients.
As a whole, the CAM business had total contracted projects amounting to ₱1.58 billion, comprising of pipelaying works at 74 percent translating to ₱1.16 billion and IUS at 26 percent equivalent to ₱408 million.
In fulfillment of its commitment in environmental sustainability and harnessing renewable energy, MWTS is also venturing in waste-to-value programs through the Product and Innovations Department (PID), in partnership with local government units and communities. Looking ahead, PID looks to partner with other industrial and agricultural waste management companies to strengthen the goal of applying technological innovations towards realizing vertical growth.
*Pipelaying’s 2017 revenues restated from ₱365 million to ₱492 million
HEALTHY FAMILY PACKAGED PURIFIED WATER: CREATING RESPONSIVE PRODUCTS
For years, Manila Water has remained steadfast in its advocacy to clean, safe, and potable water up to the meter. However, there is still a growing demand from customers who do not trust their household reticulation system, after-the-meter or internal plumbing systems, or deteriorated pipes for potable water. There are also those with personal preferences for bottled purified water due to their aversion to the mandatory residual chlorine in tap water.
Leveraging on the expertise and operational efficiency of Manila Water, MWTS established its Healthy Family (HF) business, which aims to address the drinking water needs of this segment. HF is engaged in the sale of purified water that comes in five-gallon containers, guaranteeing a shelf life of six months.
Further establishing its presence in the purified water market, MWTS now has three variants. The 500-ml bottle (500-ml HF Mini) was launched in 2017, which are retailed in packs or cases of 24 bottles. Two new variants were commissioned and commercialized in 2018: the 350-ml bottle (350-ml HF Mini), which was launched in July 2018, and the one-liter bottle, which was launched in December 2018.
All HF variants leverage the same distribution network that provides livelihood and employment opportunities to 371 partner distributors. HF currently has two plants with a total production capacity of 14,400 containers per day. Its customer base currently covers Metro Manila, and its growing key accounts include government institutions, hotels, schools, hospitals, BPO offices, fitness centers, and sari-sari stores.