In a move to expand its footprint all over the world, country's largest agri-irrigation solution firm Jain Irrigation Systems limited (JISl), spread over 2,100-acre land in Jain Hills with more than 10,500 associates and 30 locations across the globe, is planning to expand its existing business verticals and looking for more overseas acquisitions in the near future.
"In order to deliver agriculture technology and end-to-end project solutions in irrigation for farmers in India and abroad, we need to expand our agri-business aggressively. Recently, we have already agreed to acquire 80 per cent stake in two entities in the US and we are also looking for more acquisitions globally," said Anil Jain, Managing Director and Chief Executive (MD & CEO) who looks after finance, strategic planning and merger and acquisitions.
When asked about the revenue break-up of both domestic and international businesses, he said, "Till today, the company has 55 per cent earnings from India and 45 per cent from international businesses."
As far as domestic projects are concerned, sources, however, said that the company has been awarded over Rs 1,000 crore irrigation contracts from the Government but it has been stuck due to some reason or the other. "We are in regular touch with the Government ministries and we hope we will expedite it to execute those projects as soon as possible," said Anil.
Recently, JISl also announced that it would acquire 80 per cent stake in two micro-irrigation companies - Agri-Valley Irrigation Inc and Irrigation Design and Construction Inc - through its multi-generation wholly-owned subsidiary in the US.
Besides, the company is looking for its exponential growth by setting up new agriculture and food processing park, solar water motor, spice & orange business, new big irrigation projects etc. "We plan to set up new agriculture and food processing park in 600 acres of land with an investment of around Rs 400 crore shortly. Apart from this, we are also planning to make our firm more profitable by introducing new businesses like solar water motor as well as big irrigation projects and at the same time, our aim is to make farmers cost-saving and self reliable," said Anil.
As far as company's pipe business is concerned, the company is also launching 2500-mm pipe which can be used for creating canals. "We are also reviving our pipe business shortly and we will launch 2500-mm pipes. It will help farmers in a big way because we offer unique technology to them," said Joint MD Ajit Jain.
"Our main stakeholders are farmers whose success inspires us to grow more in riding a step ahead in our business ladder. JISl always aims at reaching out them and helps make them richer," said Ajit.
After witnessing huge success in food business such as banana, mango, onion, wheat, redgram (tur), potato, maize etc through micro drip irrigation system, the company also plans to start spice production by August this year, while orange in 2-years time, a move aimed at strengthening its portfolios under food division. Besides, guava, sugarcane, ginger and pineapple, coconut etc are also in the pipeline.
"We are also launching our spices business in around July-August 2017 in Jalgaon with initial investment Rs 50 crore and by three to four years this investment will reach upto Rs 500 crore," said Anil.
Initially, Anil added, the company will start with ginger, turmeric, pepper, cumin, chilli etc and then it will expand the base and export to other countries. When asked about raw materials, he said, "We will purchase the raw materials from Indian farmers only except pepper which will be imported from other countries."
However, sources close to the company said, the new food division will be much bigger that the existing one and it will be looked after by youngest Jain brother, Atul Jain, Joint MD, who is currently looking after its marketing management.
Jain Irrigation has been considered as 'lifeline' for over 6 million small farmers in the country. Its approach to water security and food security with silent productivity revolution as well as innovative technologies has helped many farmers to get significant increase in their crop yields.
The organisation has developed a high-tech banana tissue culture in which farmers get benefitted a lot. According to farmers, for last 10 years they have tripled their income through this banana cultivation. "This tissue culture technology has created sustainable livelihood for the farmers in many rural farmers across the county. Our income has grown three-folds for last 10 years due to JISl. Its irrigation technology is giving us barter yields and good returns to us, making profits of approximately Rs 1.5 lakh per acre," said a farmer.
JISl, which is engaged in providing 'one-stop agriculture shop' such as piping, infrastructure through manufacturing of micro irrigation systems, PVC & HDPE pipes, plastic sheets, agro-processed products, renewable energy, tissue culture plants, financial services etc, has a motto - 'small ideas, big revolutions'. "Our main stakeholders are farmers whose success inspires us to grow more in ridding a step ahead in our business ladder. JISl always aims at reaching out them and helps make them richer," said Ajit.
The company's founder and the then Chairman Bhavarlal Hiralal Jain who passed early last year, is still a driving force for his four sons - Ashok Jain, Anil Jain, Ajit Jain and Atul Jain. Ashok who succeeded his father as Chairman is following his father's footstep and taking the company fast forward with his three younger brothers.