Netafim

From Wikipedia, the free encyclopedia
Jump to navigation Jump to search
Netafim
TypePrivate
IndustryDrip and Micro-irrigation Technologies
Founded1965; 56 years ago (1965)
HeadquartersHatzerim, Tel Aviv, Israel
Key people
Gaby Miodownik
( President & CEO)
RevenueIncrease US$ 1.063 billion (2019)
Number of employees
over 5,000
Websitewww.netafim.com/en/

Netafim is an Israeli manufacturer of irrigation equipment. The company produces drippers, dripperlines, sprinklers and micro-emitters. Netafim also manufactures and distributes crop management technologies, including monitoring and control systems, dosing systems, and crop management software, as well as a variety of services, including managed irrigation, agronomical advisory and operation and maintenance. As of 2012, Netafim was the global leader on the fast expanding market of drip- and micro-irrigation.[1] In it was the overall largest provider of drip irrigation systems, with a global market share of 30%.[2]

History[edit]

Button dripper

In 2020 Netafim held an over-30% share of the global drip irrigation market.[3] The company recorded revenues of over $1.063 billion in 2019.[4]

Netafim is headed by President & CEO Gaby Miodownik, and jointly owned by Orbia (80%) and Kibbutz Hatzerim (20%),[5] following extensive bidding by half a dozen interested parties, including U.S. industrial technologies company Fortive Corp (FTV.N), Singapore's Temasek Holdings [TEM.UL], U.S. tools maker Stanley Black & Decker (SWK.N), Chinese investment fund Primavera and Chinese pipe maker Ningxia Qinglong (002457.SZ).[6]

Timeline[edit]

  • 1960–1965 – Water engineer and inventor Simcha Blass carries out tests on the world's first dripper device.[3]
  • 1965 – Kibbutz Hatzerim signs agreement with Blass to establish Netafim
  • 1966 – Introduces world's first commercial dripper
  • 1978 – Introduces world's first pressure compensated (PC) dripper
  • 1981 – Opens first subsidiary outside of Israel
  • 1998 – Merges into single corporation
  • 2007 – Introduces world's first low-flow dripper
  • 2011 – Permira funds acquires controlling interest for €800m[7]
  • 2013 – Named 2013 Stockholm Industry Water Award (SIWI) Laureate[8]

On August 7, 2017, Mexichem SA announced it would acquire Netafim from Permira Holdings Ltd. for $1.5 billion.[9][10][11][12]

Ownership[edit]

Netafim offices at Hatzerim

In 1973, Netafim brought in its first partner, Kibbutz Magal, based in the Sharon region, and then added a second partner, Kibbutz Yiftach, based in the Upper Galilee region, in 1978. Netafim Hatzerim, Magal and Yiftach merged to create Netafim (ACS) Ltd in 1998. In 2006, Markstone Capital Partners Group and Tene Investment Funds acquired a share of Netafim. In 2011, the European private equity fund Permira acquired a majority (61%) stake in Netafim, with Kibbutz Hatzerim holding 33% and Kibbutz Magal holding 6%. In 2017 these owners sold 80% of Netafim to Mexichem, with Kibbutz Hatzerim retaining 20%.[13]

Products[edit]

Netafim produces drip irrigation systems and other water technologies intended to increase yields and improve crop production while preserving quality and quantity of water and soil fertility. The company products are designed to provide solutions[buzzword] in the areas of efficient irrigation, control and agronomy for a range of field crops, orchards and vineyards grown under varied topographic and climatic conditions throughout the world. At present Netafim is developing ecological solutions[buzzword] for producing fuel from alternative sources. Concurrently, Netafim is launching a low pressure irrigation system that offers a solution[buzzword] for areas where water pressure and/or electrical infrastructure do not permit using high pressure systems. This development will facilitate introduction of the drip irrigation systems into additional agricultural areas.

Global presence[edit]

In 1981, the company opened NII, its first international subsidiary, in the US. Today Netafim maintains 33 subsidiaries[14] and 17 manufacturing plants worldwide, and employs over 5,000 workers. In January 2014 it was announced on Bloomberg that Netafim had won a $62 million water project contract to build an automated water pipeline network in the southern state of Karnataka, India.[15] Since then Netafim has won additional 7 community irrigation projects in India covering in total 106,000 hectares and 97,000 farmers.[16] In March 2016 it was announced in Globes that Netafim had won a 200 million project in Ethiopia to provide an end-to-end irrigation solution for a plantation by the Ethiopian government sugar company.[17] In March 2019 Netafim won a $60 million project in Rwanda to develop an agribusiness hub.[18]

Drip irrigation & sustainability[edit]

Netafim is involved in several global sustainability initiatives. The company is a member of the UN CEO Water Mandate and UN Global Compact (UNGC), and was named 2013 Stockholm Industry Water Award Laureate for its contribution to sustainable water management. According to company sources, the use of drip irrigation for rice and tomatoes cuts down on greenhouse gases and nitrous oxide associated with algae blooms.[19]

See also[edit]

References[edit]

  1. ^ Drip Irrigation Expanding Worldwide, National Geographic, 25 June 2012, accessed 1 August 2019
  2. ^ Tova Cohen, Israeli irrigation firm Netafim sees 50 pct earnings rise by 2020, Reuters.com, 21 March 2018, accessed 1 August 2019
  3. ^ a b "Netafim, $500 million in Debt Financing Round". AG Funder News. 19 March 2015. Retrieved 10 March 2017.
  4. ^ "Orbia Announces Fourth Quarter and Full Year Financial Results for 2019". businesswire. 26 February 2020.
  5. ^ Reed, John (August 8, 2017). "Mexichem to buy Israeli irrigation specialist Netafim". Financial Times.
  6. ^ "Israel irrigation firm Netafim draws interest from 6 bidders: report". Reuters. June 14, 2017.
  7. ^ Permira buys 61 pct of Israel's Netafim, reuters
  8. ^ Stockholm Industry Water Award. "SIWI". Netafim, a pioneer and leading provider of drip and micro-irrigation technology worldwide, has been named the 2013 Stockholm Industry Water Award laureate.
  9. ^ Lombardo, Cara; Harrup, Anthony (August 7, 2017). "Mexichem to Buy Netafim from Permira Funds". The Wall Street Journal. New York City, New York, United States. Retrieved August 10, 2017.
  10. ^ Reed, John (August 7, 2017). "Mexichem to buy Israeli irrigation specialist Netafim". Financial Times. United Kingdom. Retrieved August 10, 2017.
  11. ^ "Home". The Jewish Voice.
  12. ^ Reuters Staff (August 7, 2017). "Mexichem to take over Israeli irrigation firm Netafim in $1.5 billion deal" – via www.reuters.com.
  13. ^ "Permira Funds to Sell Netafim to Mexichem for US$1.895 billion | Permira".
  14. ^ "Netafim buys Central American irrigation co RyM". September 25, 2016 – via Globes.
  15. ^ Archana Chaudhary (23 January 2014). "Netafim to Build Largest India's Drip-Irrigation Project". Bloomberg. Retrieved 10 March 2017.
  16. ^ SHOSHANNA SOLOMON (10 August 2020). "Netafim gets $85m irrigation deal to help Indian farmers grow onions, beans". timesofisrael.
  17. ^ "Hapoalim leads $200m finance for Netafim project in Ethiopia". Globes. 6 March 2016.
  18. ^ Emmanuel Ntirenganya (4 March 2019). "Rwanda, Israeli firm in Rwf60bn deal to develop agribusiness hub in Gabiro". The new Times.
  19. ^ "The secret of Israel's water miracle and how it can help a thirsty world". Haaretz.com.