Jain Irrigation - Spreading Reach

Jain Irrigation To Set Up New Plants

Jain Irrigation would invest around Rs 40-50 crore to set up a pipes and drip irrigation manufacturing facility in Tamil Nadu and another in North India in the next six months.

The facility in TN would entail an investment of around Rs 20 crore and will come up shortly while the one to be set up in North India would take shape in about six months’ time, Jain Irrigation’s Managing Director Anil Jain told PTI here. “This will help us to not only increase our capacity but also extend our footprint nationally,” Jain said.

The Maharashtra-based Jain Irrigation had recently set up one such facility in Hyderabad at an investment of Rs 30 crore. The Rs 1,300-crore Jain group, which is also engaged in food and fruits processing, plans to set up a processing plant in North India within the next 6-9 months.

“We plan to set up a plant in the agri-belt of North India. We will be identifying the location soon,” Jain said.

The company already has two processing plants in Jalgaon in Maharashtra and in Chittoor in Andhra Pradesh. The processing unit is estimated to entail an investment of around Rs 30-40 crore and is likely to be set up in either Punjab, Haryana or Uttaranchal.

Jain Irrigation’s future strategy will be to continue its focus on its core businesses of drip irrigation and food and fruits processing.

Source : Business Standard

Jain Irrigation - Gets Mango Pulp Order

Jain Irrigation Secures Rs 84 Crore Mango Pulp Order

Jain Irrigation Systems Ltd has announced that the Company has bagged the largest order for Rs 84 crores from Hindustan Coca Cola Company for supply of mango pulp. Compared to the order of Rs 33 crores last year, this is a quantum jump. Coke bottles Mango drink in India under the most popular brand name of Maaza.

The Mango pulp business is expected to exceed a turnover of Rs 160 crores this year based on additional export orders in hand. Entire order will be processed in the current mango season. The Fruit & Vegetable Processing Division is expected to register more than 50% growth in the current financial year.

The Company has five plants for fruits & vegetables in the vegetable processing in India and one in USA. The Company is expecting to process in excess of 75000 MTs of mangoes in the current season registering 60% growth in amount of quantity processed. The Company is a major supplier to many MNCs and to global leading beverage & food brands. The Company has emerged as the largest processor of fruits & vegetables from India.

The Company will continue to invest to expand product range and to strengthen backward linkage with farmers so as to become major supplier of frozen, aseptic and dehydrated fruit & vegetable products.

India is the largest producer of mangoes in the world with a share of more than 55% of the world production. India is also the producer of the most delicious mangoes such as Alphonso, Kesar, Dasheri, Totapuri, Chusa, etc. There is Large potential for fresh mangoes as welt as processed mango juice as consumers are preferring healthy drinks over other types of drinks. Fruit juice and fruit drink market in India is growing above 30% every year.

The Company is a diversified company with more than 5,000 employees worldwide and market capitalization in excess of INR 3.00 bn and a product portfolio encompassing Irrigation Products, Piping Products, Plastic Sheets, Dehydrated Foods, Fruit Puree, Pulp & Juices in India and other world markets. The Company has been named as one of the eight Indian Companies expected to emerge as challengers to the World Leading Companies by Standard & Poor's recently in May 2007.

Source : Bombay Stock Exchange

Jain Irrigation - Buys 50% Stake In Na'anDan, Israel

Jain Irrigation Buys 50% Stake In Na'anDan, Israel

Jain Irrigation Systems has signed definitive agreements through a wholly owned subsidiary in Netherlands to acquire 50.001% of the share capital of Na'anDan Irrigation Systems, Israel for $ 21.5 mn in all cash deal.

According to an official release issued by the company to the BSE today, it along with Kibbutz Naan on an equal basis would jointly control and manage Na'anDan. Of the $21.5 mn, $ 10.5 mn will be retained in Naandan for future growth.It is further committed to bring additional funding support in form of loan and/or guarantees to the tune of $ 7.5 mn for bona fide growth requirements. The closing is expected to take place early next month.

On the completion of the proposed transaction, Na'anDan's name will be changed to "Na'anDan Jain Irrigation". Jain Irrigation will be the platform for development of worldwide drip/sprinkler market for both partners. Both partners have agreed to provide long term guarantees for maintaining the manufacturing facilities and employment in Israel.

NaanDan's global network includes manufacturing companies in the USA, Spain, Mexico, Brazil, Chile and Australia and marketing subsidiaries in France and Italy. Naandan has exclusive distributors in over 50 countries and employs 550 people worldwide. Naandan has achieved a $75 mn revenue for 2006 and is a profit making company.

B H Jain, chairman, Jain Irrigation said: "This is a historic deal wherein the fastest growing irrigation company in the world, has joined hands with Na'anDan, which is one of the earliest pioneers of the irrigation technology having global presence. We will be able to leverage their technology to improve productivity of Indian agriculture and use their access to global markets to increase exports from both the countries".

Source : Business Standard

Jain Irrigation - Acquires Aquarius

Jain Irrigation Announces Acquisition Of Aquarius Brands Inc. California, USA

Jain Irrigation Systems Ltd on February 15, 2007 has announced that it has agreed to acquire 100% control in Aquarius Brands Inc. California, USA from Habasit Holding USA Inc for USD 21.5 million in all cash deal. Aquarius is a debt free Company. With this acquisition, the Company will become second largest drip irrigation Company in the world.

The Company is a diversified Company with more than 3,800 employees and market capitalization in excess of INR 25 Billion and a product portfolio encompassing Irrigation Products, Piping Products, Plastic Sheets, Dehydrated Foods, Fruit Puree and Juice concentrates. The Company has pioneered drip irrigation for small farmers in India and has the major market share in one of the fastest growing irrigation markets in the world. The Company had acquired Chapin Watermatics, a leading manufacturer of drip tape located in Watertown, New York in May 2006.

Aquarius is a leading designer and manufacturer of micro-irrigation systems for agriculture, landscape and nursery applications, Aquarius' divisions include Agricultural Products (API®), PEPCO®, and Acu-Drip®. The Company has been providing fittings, filters, air vents, tubing, emitters and accessories to the irrigation industry for over 35 years. Branded products Include Spin Clean® filters, Tape Loc®, Spin Loc® and Power Loc® fittings, Softube® and Fiatube®, Micro-Flapper®, Quadra-Bubbler® and Octa-Bubbler®, among many others. The Company has manufacturing facilities in Ontario and Fresno, California and Winter Haven, Florida. It has network of more than 1000 dealers for product distribution.

Managing Director of the Company, Anil Jain said after closing the deal in USA, "With this acquisition we have firm foothold in one of the largest markets for the irrigation business and access to latest technology for Irrigation components". He further added that "Jain Irrigation will now focus on synergies of its operations in India and USA to offer the most diverse but integrated products and services in the irrigation business to customers all over the world".

This Acquisition will be made through Jain Irrigation Inc, USA, a wholly owned subsidiary of the Company. Closing of the transaction will take place immediately.

Source : Bombay Stock Exchange

Jain Irrigation - Net Jumps 105% For Dec`06 Qtr

Jain Irrigation - On A Growth Path

Jain Irrigation Systems disclosed a 105% jump in net profit at Rs 313.00 million for the quarter ended Dec. 2006, up from Rs 152.50 million in the year-ago quarter. Sales for the quarter rose 37.80% to Rs 3,023.10 million compared with the corresponding quarter, a year ago. Operating margins improved to 15.95% during the quarter, a rise of 392.75 basis points compared with the corresponding quarter.

Net margins, on the other hand, rose from 6.92% to 10.30% during the quarter. The company`s earnings per share on a trailing twelve month basis is Rs 16.83.

Jain Irrigation - Onions Dehydration

Jain Irrigation Purchases Majority Interest In Cascade Specialties Inc, USA

Jain Irrigation Systems Ltd has announced that the Company, through its subsidiary in USA, has entered into an agreement to purchase the majority interest of Cascade Specialties, Inc.

Cascade Specialties, Inc. is an onion dehydrator based in Boardman, Oregon, USA, specializing in natural low bacteria onion products and organic dehydrated onion.

"We are very pleased to be involved with Cascade Specialties," said Anil Jain, Managing Director of the Company, "Cascade’s commitment to produce high quality products coupled with its excellent reputation for customer service is exactly the approach we take to the marketplace with all of our other businesses," he stated.

With this acquisition, the Company becomes the third largest dehydrated onion producer in the world with total combined capacity in excess of 25000 MTS. The Company, earlier this year had also made two onion related acquisitions in India. This new capacity along with Cascade capacity at full utilization is expected to generate revenue in excess of US$ 50 M by FY 2009 as against US$ 10 M in FY 2006. This is in line with the Company strategy to be among the top 5 Companies globally in the lines of businesses it operates.

No major changes are planted regarding personnel and the management leadership of the business. The transaction is expected to close before the end of December 2006.

The Company is a diversified entity and has been operating in the growth oriented businesses of Micro Irrigation Systems, plastic pipes, plastic sheets and food processing over the last 25 years. With the addition of this new acquisition, the financial year 2006-07 is going to be a year of significant growth for the food division of the Company.