Jain Irrigation Systems

Irrigation Systems Ltd
Public
Traded as BSE: 500219
NSE: JISLJALEQS
Industry Agriculture, irrigation, pipe, food processing, solar energy
Founded Jalgaon, Maharashtra, India (1986)
Headquarters Jalgaon, India
Number of locations
 33 manufacturing plants worldwide
Area served
 Worldwide
Key people
 Bhavarlal Jain (Founder, Chairman)
Ashok B. Jain (Chairman)
Revenue Increase ₹62.07 billion (US$860 million) (FY 2014-15) [1]
Increase ₹6.117 billion (US$85 million) (FY 2013-14)[2]
Decrease ₹0.397 billion (US$5.5 million) (FY 2013-14)[2]
Number of employees
 more than 11, 500 (2018)
Website www.jains.com

Jain Irrigation Systems, often known as Jain Irrigation, JISL, or simply Jains, is a multinational organisation based in Jalgaon, India. JISL employs over 11, 500 employees, and has 33 manufacturing plants. It develops, manufactures, supports and sells diversified products, including drip and sprinkler irrigation systems and its components, integrated irrigation automation systems, PVC and PE piping systems, plastic sheets, greenhouses, bio-fertilizers, solar power, solar water-heating systems, solar water pumps, turnkey biogas plants, and photovoltaic systems. JISL also processes dehydrated vegetables, concentrated and frozen fruits or pulp.

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, Anubhuti School, and Jain Pipe.[3] Jain continued acquiring companies to expand its business penetration. After some big acquisitions it became currently second-largest irrigation company and third-largest dehydrated onion producer in the world.

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,[4] Pioneer of Drip Irrigation Systems concept in United States.
  • 2006: JISL acquired NuCedar Mills, a US company in the custom homebuilding market.[5]
  • 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.[6]
  • February 2007 – By acquiring the US-based Aquarius Brands for $21. 5 million in an all-cash deal, Jain Irrigation became the second-largest drip irrigation company in the world.[7]
  • June 2007 – Jain Irrigation Acquired 50. 001% stake in NAANDAN.[8] Following the transaction, which includes a US$30 million investment, NaanDan and Jain intend to become the largest irrigation company worldwide within the next few years .
  • November 2010 – By acquiring controlling stake in Sleaford Quality Foods Limited ("SQFL" or "Sleaford Quality Foods"), a UK-based Industrial Food Ingredients Supplier[9] 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.[10]

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.[11]

In 1963, selling kerosene from a pushcart, a young law graduate Bhavarlal Jain, founded a business. The family formed a partnership with ₹ 7, 000, an accumulated savings of three generations, as capital. Soon, agencies for two-wheelers, auto vehicles, and automobile accessories were established.

  • 1963–1978: 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.
  • 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 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.[12]
  • 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. Further Jain expanded the range to casing & screen piping systems.

Growth (1989 – )

  • 1989: Beginning in 1989, Jain Irrigation worked to develop water management through micro-irrigation in India. Jain Irrigation has introduced some high-tech concepts to Indian agriculture, such as the integrated system approach, one-stop-shop for farmers requirements, and infrastructure status to micro-irrigation & farm as industry.[13]
  • 1994: Jain diversified into food processing and set up facilities vegetable dehydration and the production of fruit purees, concentrates, and pulp. This facility 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.[14] JISL were out from a bad financial patch of 4 years and start growing rapidly. Its net profit were 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.[15]
  • 2005 – : Jain started producing individually quick-frozen (IQF) food products like frozen mango slices in agreement with the Taiyo Kagaku Company Ltd, Japan.
  • 2006 – : After continued acquisitions, Jain became the second-largest irrigation company and third-largest dehydrated onion producer in the world. It also became the largest processor of fruits & vegetables within India.
  • 2012 - : Gandhi Research Foundation (GRF), inaugurated by President of India, Pratibha Patil on 25 March 2012. Sponsored by Jain Irrigation and Bhavarlal Kantabai Foundation. The Foundation is the initiator and promoter of ‘Gandhi Teerth’, an international centre for Gandhian study, research and dialogue. Its core objective is to preserve and promote for posterity the Gandhian ideology and legacy. 'Gandhi Teerth' comprises Gandhi museum, Gandhi International Research Institute, Gandhi archives, publications, and various programmes for rural development based on Gandhian lines. The foundation has a collection of 7350 books, 4090 periodicals, 4019 photographs, 75 films, 148 audio recordings of Mahatma Gandhi's speeches, and philately items from 114 countries.[16]
  • 2016 – : Jain Irrigation's food division has been hived off into a Subsidiary Company Jain Farm Fresh Foods Ltd (JFFFL), which were in the food processing business since 1994 making fruit pulps of mango, banana, gauva, strawberry and dehydrated vegetables. Jain Farm Fresh Foods Ltd (JFFFL) launched its first branded retail product 'AamRus' under the umbrella brand name of 'Jain FarmFresh'. 'AamRus', processed from Alphonso and Kesar varieties, is sweetened frozen mango pulp with no added flavour and colour. [17]

Corporate rankings

References

  1. ↑ "Consolidated Result-15". jains.com. Retrieved 24 October 2015.
  2. 1 2 "Consolidated Result". bseindia.com. Retrieved 11 September 2014.
  3. ↑ "Jain Group companies amalgamated with the JISL". Retrieved 2 May 2006.
  4. ↑ "Jain irrigation acquired USA Base Chapin Watermatic". Retrieved 2 May 2006.
  5. ↑ "US acquisition bolsters Jain Irrigation". Archived from the original on 28 February 2006. Retrieved 7 February 2006.
  6. ↑ "Jain Irrigation acquired Cascade Specialties, Inc, USA". Retrieved 20 November 2006.
  7. ↑ "By acquiring Aquarius will second-largest drip irrigation company in the world". Archived from the original on 15 May 2007. Retrieved 17 February 2007.
  8. ↑ "Indian conglomerate Jain Irrigation acquired 50% of NaanDan". Archived from the original on 29 June 2007. Retrieved 25 June 2007.
  9. ↑ "Jain Irrigation Acquires 80% In UK-based Sleaford". Archived from the original on 30 September 2011. Retrieved 29 June 2011.
  10. ↑ Azulai, Yuval (14 May 2012). "Kibbutz Naan sells NaanDanJain Irrigation". Globes. Retrieved 22 May 2012.
  11. ↑ "History of Jain irrigation". Retrieved 15 January 2007.
  12. ↑ "Recognition of Jain irrigation". Retrieved 23 February 2015.
  13. ↑ "Jains Contribution to Indian agriculture" (PDF). Retrieved 23 February 2015.
  14. ↑ "US fund to acquire 49. 4% in Jain Irrigation Systems". Retrieved 16 January 2007.
  15. ↑ "Jain Irrigation net profit doubles". Retrieved 16 January 2007.
  16. ↑ "Museum of Gandhi Research Foundation". Retrieved 8 February 2016.
  17. ↑ "Jain Irrigation Systems's food division launches 1st branded retail product". Retrieved 8 February 2016.
  18. ↑ "Jain Irrigation Systems Ltd. among S&P's list of world-beaters". Archived from the original on 4 July 2007. Retrieved 12 May 2007.
  19. ↑ "The new sustainability champions" (PDF). Retrieved 26 September 2011.
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