Jain Irrigation Systems

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Jain Irrigation Systems Ltd
Type Public company
Traded as BSE500219
NSEJISLJALEQS
Industry Agriculture
Irrigation
Pipe
Food Processing
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,
Vasant V. Warty Director,
Radhika C. Pereira Director,
D.R.Mehta Director,
Ghanshyam Dass Director,
Arun Kumar Jain Director
Revenue Increase INR58.343 billion (US$920 million) (FY 2013-14) [1]
Operating income Increase INR6.117 billion (US$96 million) (FY 2013-14)[1]
Net income Decrease INR0.397 billion (US$6.2 million) (FY 2013-14)[1]
Employees more than 10,000 (2014)
Website www.jains.com

Jain Irrigation Systems (BSE500219 and NSEJISLJALEQS) (often known as Jain Irrigation, JISL, or simply Jains) is a multinational organisation based in Jalgaon, India. JISL employs over 10,000 employees, has 28 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[edit]

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 organised 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 specialises 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.
  • May 2012 – Jain acquired the remaining 50% of NaanDanJain Ltd. from Kibbutz Na'an in Israel for an estimated $35 million.[9]

History and growth[edit]

Early history[edit]

  • 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.[10]

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 INR 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 INR 1 million in 1963 to INR 110 million in 1978.
  • 1978: Jain took over a 14-year-old sick banana powder plant in April 1978 at a high auction price of INR 3 million while only INR 0.2 million as inevitable surplus. The plant was 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[citation needed].
  • 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 – )[edit]

Drip irrigation and spare drip irrigation tubes in banana farm at Chinawal village in Jalgaon district, India
The sign at a main entrance to the Jain Irrigation corporate campus. Today called Jain Plastic Park, it covers more than 3,397,680 square feet (approx. 315,822 m²)
  • 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.[11] JISL is out from a bad financial patch of 4 years and start growing rapidly. Its net profit has more than doubled from Rs 324 million in fiscal 2004–05 to Rs 671.7 million in fiscal 2005–06. Exports have contributed Rs 2.89 billion to Jain's overall revenue.[12]
  • 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[edit]

  • JISL was listed 185th in the FE-500 ranking of 2005 by India Business Insight via Thomson Dialog NewsEdge.[13]
  • Standard & Poor's identifies Jain Irrigation Systems Ltd. among list of 300 world-beaters.[14]
  • In 2011, the World Economic Forum stated JISL as one of the 15 Sustainability Champions, an assessment based on growth outlook, strength of fundamentals and adaptability to cater to explosive global growth. "The new sustainability champions". Retrieved 26 September 2011. 

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[edit]

  1. ^ a b c "Consolidated Result". bseindia.com. Retrieved September 11, 2014. 
  2. ^ "Jain Group companies amalgamated with the JISL". Retrieved 2 May 2006. [dead link]
  3. ^ "Jain irrigation acquired USA Base Chapin Watermatic". Retrieved 2 May 2006. 
  4. ^ "US acquisition bolsters Jain Irrigation". Retrieved 7 February 2006. 
  5. ^ "Jain Irrigation acquired Cascade Specialties, Inc, USA". Retrieved 20 November 2006. 
  6. ^ "By acquiring Aquarius will second-largest drip irrigation company in the world.". Archived from the original on 15 May 2007. Retrieved 17 February 2007. 
  7. ^ "Indian conglomerate Jain Irrigation acquired 50% of NaanDan". Archived from the original on 29 June 2007. Retrieved 25 June 2007. 
  8. ^ "Jain Irrigation Acquires 80% In UK-based Sleaford". Retrieved 29 June 2011. 
  9. ^ Azulai, Yuval (14 May 2012). "Kibbutz Naan sells NaanDanJain Irrigation". Globes. Retrieved 22 May 2012. 
  10. ^ "History of Jain irrigation". Retrieved 15 January 2007. 
  11. ^ "US fund to acquire 49.4% in Jain Irrigation Systems". Retrieved 16 January 2007. 
  12. ^ "Jain Irrigation net profit doubles". Retrieved 16 January 2007. 
  13. ^ "Jain Irrigation Systems Ltd (JISL) ranks 185th in the FE-500 ranking of 2005". Retrieved 15 January 2007. 
  14. ^ "Jain Irrigation Systems Ltd. among S&P's list of world-beaters". Retrieved 12 May 2007. [dead link]

External links[edit]