Jain Irrigation Systems
Jain Irrigation Systems Ltd
|
| Type |
Public |
| Traded as |
BSE: 500219
NSE: JISLJALEQS |
| Industry |
Agriculture
Irrigation
Pipe
Solar energy |
| Founded |
Jalgaon, Maharashtra, India (1989) |
| Headquarters |
Jalgaon, India |
| Key people |
Bhavarlal H. Jain, Founder Chairman
Ashok B. Jain, Vice Chairman
Anil B. Jain, Managing Director
Ajit B. Jain, Joint Managing Director,
Atul B. Jain, Director,
R. Swaminathan Director,
Ramesh C.A. Jain [IAS Retd.] Director,
Vasant V. Warty Director,
Radhika C. Pereira Director,
D.R.Mehta Director,
Ghanshyam Dass Director,
Arun Kumar Jain Director |
| Revenue |
3,650 crore (US$693.5 million) (2010) [1] |
| Employees |
more than 7,500 (2010) |
| Website |
www.jains.com |
Jain Irrigation Systems (BSE: 500219 and NSE: JISLJALEQS) (often known as Jain Irrigation, JISL, or simply Jains) is a multinational organization with global presence in 120 countries based in Jalgaon, Maharashtra, India. JISL employs over 7,500 workers, having 24 manufacturing plants, manufactures a number of products, including drip and sprinkler irrigation systems and components, integrated irrigation automation systems, PVC and PE piping systems, plastic sheets, greenhouses, bio-fertilizers, solar water-heating systems, biogas plant on turnkey basis, wind hybrid energy and photovoltaic system. JISL also processes dehydrated, concentrated and frozen fruits and vegetables. It's Equity Shares & FCCB listed in Exchanges Bombay Stock Exchange as JAINIRRIG, National Stock Exchange of India as JISLJALEQS also in Luxembourg.
Mergers and acquisitions
Jain Irrigation Systems Ltd. emerged as one big company after merging with various Jain Group Companies, such as Jain Plastic & Chemicals Ltd., Jain Kemira Fertilizers Ltd., Jain Rahan Biotech Ltd, Jain Brothers Industries, and Jain Pipe.[2]
JISL then acquired Tera Agro Technologies and the mango-processing division of Parle-Bisleri Pvt. Ltd., both located in India. After this and similar other acquisitions, JISL became the largest processor of fruits & vegetables within India and the biggest mango pulp processor in the organized sector of the world.
- 2006 : JISL acquired Chapin Watermatic,[3] US pioneer in irrigation systems.
- 2006 : JISL acquired NuCedar Mills, a US company in the custom homebuilding market.[4]
- December 2006 - JISL acquired a majority stake in the US-based Cascade Specialties, Inc., which specializes in natural low-bacteria onion products and organic dehydrated onion. With this acquisition, Jain Irrigation became the third-largest dehydrated onion producer in the world, with a combined capacity in excess of 25,000 MTS.[5]
- February 2007 - By acquiring the US-based Aquarius Brands for $21.5 million in an all-cash deal, Jain Irrigation will become the second-largest drip irrigation company in the world.[6]
- June 2007 - Jain Irrigation Acquired 50.001% stake in NAANDAN.[7] Following the transaction, which includes a US$30 million investment, NaanDan and Jain intend to become within the next few years the largest irrigation company worldwide.
- November 2010 - By acquiring controlling stake in Sleaford Quality Foods Limited ("SQFL" or "Sleaford Quality Foods"), a UK based Industrial Food Ingredients Supplier[8] Jain Irrigation got direct access to a large market with value added products with this acquisition.
History and growth
Early history
- 1887-1963: Jain Irrigation's roots in the fields of agriculture, water, and food started in 1887 when its founder's forefathers left the deserts of Rajasthan, their home state, in search of water and food and reached Wakod, at the foothills of the Ajanta Caves. They started farming as a means of livelihood.[9]
In 1963, selling kerosene from a pushcart, the young law graduate Bhavarlal Jain, founded the family business in trading. The family formed a partnership with a meager 7,000, the accumulated savings of three generations, as capital. Soon, agencies for two wheelers, auto vehicles, and automobile accessories were established.
- 1963-1978: Inspired by a quote, "Agriculture: a profession with future" young Bhavarlal Jain added a dealership of tractors, sprinkler systems, PVC pipes, and other farm equipment. In order to broad-base the business, agencies for farm inputs such as fertilizers, seeds, and pesticides were also added. Sales grew from 1 million in 1963 to 110 million in 1978, a phenomenal increase. These formative years helped Jain build a unique and lasting enterprise. This was achieved through consistent high standards of performance and personal behavior on the one hand and a strong sense of commitment for meeting targeted volumes and for timely payment of debts, on the other. Dealing with national and international principals was a contributing factor towards building these attitudes. In time, Jain came to be recognized as a reputable, trustworthy and prestigious house. This background augured well for an entry into industrial ventures.
- 1978: Jain took over a 14-year-old sick banana powder plant in April 1978 at a high auction price of 3 million while only 0.2 million as inevitable surplus. The plant was quickly modified for the production of papain from papaya latex. In December 1978, the founder traveled to New York in search of customers for Jain papain. The competition for purchase of raw materials at home and for sale of papain abroad was stiff and stifling. However, Jain developed purified papain through ceaseless in-house R&D and emerged as the number-one supplier of the highest purity refined papain. Thus papain put Jain on the international map.
- 1980: Manufacturing of PVC Pipe commenced with a small annual capacity of 300 MTs which was increased to over 35,600 MTs per annum by 1997. This made Jain the largest single producer of PVC pipe in India. A close-knit dealer distribution network in the rural areas, coupled with continuous automation and up gradation of product facilities and in-house R&D for maximum capacity utilization has kept Jain at the forefront. This further helped Jain to expand the range to casing & screen piping systems, thereby continuing to contribute to the growing export volumes.
Growth (1989 - )
- 1989: Beginning in 1989, Jain Irrigation struggled to pioneer water management through micro-irrigation in India. Jain Irrigation has successfully introduced some high-tech concepts to Indian agriculture, such as the integrated system approach, one-stop-shops for farmers, and infrastructure status to micro-irrigation & farm as industry.
- 1994: Jain diversified into food processing and set up world-class facilities vegetable dehydration and the production of fruit purees, concentrates, and pulp. Currently this facility is adopting ISO 9001 & HACCP certified and international FDA statute requirements. This facility will help combine the modern technologies of the west with the vast, mostly untapped agriculture resources of India, using local human resources.
- 2002 - : After being caught between severe liquidity crunch, making lot of loss and mounting pressure from the banks and financial institutions to immediately clear overdue liabilities, Jain Irrigation Systems Ltd. (JISL) has decided to raise funds by way of offering majority equity holding in the company in favour of Aqua International Partners LP.[10] JISL is out from a bad financial patch of 4 years and start growing rapidly. Its net profit has more than doubled from Rs 32.4 crore in fiscal 2004-05 to Rs 67.17 crore in fiscal 2005-06. Exports have contributed Rs 289 crore to Jain's overall revenue.[11]
- 2005 - : Jain produced individually quick-frozen (IQF) food products like frozen mango slices in agreement with the Taiyo Kagaku Company Ltd, Japan.
- 2006 - : Jain continued acquiring companies to expand its business penetration. After acquisitions it is became second-largest irrigation company and third-largest dehydrated onion producer in the world. It is also largest processor of fruits & vegetables within India.
Corporate rankings
- JISL was listed 185th in the FE-500 ranking of 2005 by India Business Insight via Thomson Dialog NewsEdge.[12]
- Standard & Poor's identifies Jain Irrigation Systems Ltd. among list of 300 world-beaters.[13]
The Crawford Reid Memorial Award instituted by the US-based Irrigation Association was given to B.H. Jain, founder and chairman, for “Significant Contribution to the Irrigation Industry outside the United States.”
References
External links