With a initial investment of only US$250, in 2008 Pablo and Juan Manuel Martelli developed Hydrolytea water purification system that This year it plans to bill between US$15 and US$25 million.
Since then, the cousins, born in Carhué, province of Buenos Aires, combined technical knowledge and commercial vision to solve a structural water problem in Argentina and scale it to a regional level.
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In just 18 years, the venture evolved into a group with an industrial presence, almost 50 employees and a valuation exceeding US$100 million.
Cousins and entrepreneurs
Pablo Martelli is 42 years old and his cousin Juan Manuel is 35. They grew up in Carhué, a town of about 10,000 inhabitants in the district of Adolfo Alsina, in the province of Buenos Aires. That initial closeness, which later became a partnership, ended up being one of the pillars of a business that grew steadily for almost two decades.
Projections for this year place turnover between US$15 million in the most pessimistic scenario and US$25 million in the most optimistic (Photo: Courtesy of Hidrolit).
The starting point was not a structured business plan, but a succession of attempts. Before Hidrolit, they tried websites and online stores at a time when e-commerce was not yet widely adopted. “We were very advanced for the time,” said Pablo, who also trained as a lawyer and taught classes, although he never fully identified with that profession.
The idea that changed the course came from a personal experience. Pablo purchased two expensive water purifiers that promised to remove arsenic, but they did not do the job. “I made my dad and uncle look bad for making them buy something that didn’t work,” he said. His father, a doctor, saw cases of diseases linked to the consumption of contaminated water, which gave true dimension to the problem.
The search for a solution to the presence of arsenic in water
In Argentina, the presence of arsenic in water responds to a geological phenomenon. In many regions, levels far exceed what is allowed by the Food Code. “We are on average eight to ten times higher, and we have seen cases up to 250 times higher,” Pablo explained.
With that diagnosis, they decided to develop their own solution. “We said, ‘Let’s make a filter that will remove the arsenic,’” he recalled. Against initial skepticism—even within their own family—they found a technology used in heavy industry by a German company and adapted it for domestic use.
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The first prototype was assembled in an apartment in Buenos Aires with local supplies and an investment of close to US$250. Laboratory tests confirmed that It eliminated 99.99% of arsenic, in addition to other heavy metals such as lead and mercury.
That development became the basis of Hidrolit, the mass consumption line of a broader structure that today operates under the umbrella of General Water Company Argentina.
Grow by reinvesting and without external financing
During the first years, growth was gradual. There were no investment rounds or external financing: everything was built from constant reinvestment. “We recovered the money and reinvested it all,” Pablo explained.
That dynamic was possible because they did not depend on the business to live. Pablo had other income and Juan Manuel, younger, did not yet have strong financial needs. That decision, unusual in early stages, allowed them to accelerate development without compromising the box.
The takeoff came several years later. “It took us eight or nine years to become a thriving company; “Strong consolidation occurred from 2018”he pointed out.
Today, the company combines three business units: an industrial one oriented towards mining and oil, a semi-industrial one for food and production processes, and the domestic line. Hydrolytewhich concentrates the greatest volume.
Productive scale and jump in billing
The last year marked a turning point. “We made an important leap that broke any prediction,” said Juan Manuel. The company is expanding its logistics capacity and plans to manufacture about 250,000 filters annually.
In parallel, the construction of a 3,600 m² plant in Cañuelas, with an investment of US$3.5 million. There they will concentrate production, with the objective of reaching a level of local integration of 80% to 90%.
Projections for this year place turnover between US$15 million in the most pessimistic scenario and US$25 million in the most optimistic.
The recent valuation, which exceeds US$100 million, opened a new stage: the search for strategic partners to expand the model in Latin America. “We are not only looking for capital, but also technical equipment that helps us implement ideas quickly,” explained Juan Manuel.
A business with environmental impact and habit change
They launched a second brand, Chill, with reusable stainless steel thermoses and bottles, to complement the use of purifiers and close the loop: access to safe water and reducing the consumption of single-use plastics. (Photo: Courtesy of Hidrolit).
The company’s growth is not only explained by technology, but also by a change in consumer habits. The Martellis aim to replace the use of bottled water, both due to costs and environmental impact.
“Buying bottled water is inefficient and polluting,” said Pablo. Along these lines, they launched a second brand, chill, with reusable stainless steel thermoses and bottlesto complement the use of purifiers. The strategy seeks to close the circuit: access to safe water at home and reducing the consumption of single-use plastics.
Hidrolit is the only company in the water treatment industry in Argentina certified as System B, a recognition that distinguishes companies that meet high standards of social, environmental impact and transparency.
Starting a business as a family, an exception to the rule
Unlike what usually happens in many family businesses, the Martellis emphasize the stability of their bond. “We have never had an argument,” Pablo said.
Both agree that the key is in complementarity and sharing long-term objectives. “We are not the ‘new rich’ who think about mansions or luxury cars; we prefer to reinvest,” he added.
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For Juan Manuel, the logic is similar to that of a life society. “It’s like choosing a partner. Today we meet with our eyes closed“, said.
This dynamic, added to an opportunity detected in a structural problem, explains how a prototype assembled in an apartment ended up becoming a company with regional projection and a nine-figure valuation.
