Jain Irrigation Systems Ltd. is banking on Indian government funding to keep the company growing and insulate it against the global economic meltdown.
Jain, which is based in Jalgaon, India, claims to be the No. 2 global player in drip and sprinkler irrigation systems, with annual sales of US$456 million. The company has grown as usage of polyethylene pipe irrigation methods have helped to revolutionize India's agricultural sector.
Jain has developed a computerized method for watering crops and plants that includes capturing rain water in plastic-lined ponds and a piping system that controls the flow of water mixed with fertilizers.
Farms can qualify for subsidies of up to 70 percent on their investments, according to P. Soman, a company vice president interviewed at PlastIndia. He pointed out that about 3.2 million acres out of 77 million acres of farmland in India have had drip/sprinkler systems installed.
As such, we are working with the farmers in helping install drip and irrigation systems, Soman said.
Likewise, Jain Irrigation is expanding globally, especially in drought-prone Africa and Australia, but also in South America, the United States and Europe.
In 2006, Jain Irrigation acquired Chapin Watermatics Inc. of Watertown, N.Y., and in 2007 bought Aquarius Brands Inc. of Fresno, Calif.
The company spent US$35 million on the acquisitions, and plans US$15 million in additional capital expenditures, according to Atul Jain, chief marketing officer.