about netafim india

8/11/2019 About Netafim India

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NETAFIM INDIA


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AGENDA


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AGRICULTURELarge irrigated area, variety of crops and high population dependency for livelihood makes indian agriculture very promising

Source: 4th Advance Estimates, Indian Economic Survey, 2012-13

Worlds secondlargest producer of fresh vegetables,sugarcane, groundnut

Ranks secondin farm outputworldwide

Worlds largestproducer of fresh fruits, pulsesand spices

Percentage Growth of major commoditiesin (2011-12) over 2010-11

Food Grain 5.01%

Oil Seeds -7.69%

Sugarcane 4.46%

Cotton 6.66%


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Large irrigated area, variety of crops and high population dependency for livelihood makes indian agriculture very promising

14% increase in budgetary allocation (in INR) for agriculture and allied activities in year 2014-15(Presently valued at US$ 3.54 Billion)

1.71

2.012.31

3.263.72

4.38

Budgetary Allocation (Billion US $)

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Source: Indian Economic Survey, 2012-13, India Budget: 2014-15

Trends in sector-wise contribution to GDP (%)

2008-09 2009-10 2010-11 2011-12

56.1

28.1

15.8

57.1

28.3

14.6

57.3

28.2

14.5

58.4

27.5

14.1

ManufacturingAgriculture Services

AGRICULTURE

2012-13

59.0

27.0

14.0

2013-14 (R) 193.1 ( In INR K Million)

2014-15 219.5 (In INR K Million)


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CHALLENGES AT PRESENTLow farm productivity, inefficient usage of agri-inputs and labour problem infarming are key challenges

Traditional methodof crop cultivationwith lowmechanization

Low input useefficiency andwastage

Water scarcity anddecreasing

cultivable land

Labour problems,Power shortage andexcessive usage

Declining watertable - 72% of area under criticalzone

Degradation of soiland water quality &land fragmentation

Lack ofinfrastructure

throughout thevalue chain

Availability ofquality credit

Low farm productivity& poor profitability

Agri-inputs constraints

Environmental /Sustainability Issues

Infrastructure support


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EVALUATING POSSIBILITIESThe challenging environment call for evaluating sustainable solutions

Increasing Cultivable Land ?

Ratio of Indias agriculturalland to farming communityhas shrunk to 0.3 ha/person

14% of Indias Agricultural

Land is seriously degradeddue to improper management

Increasing Quantum of Waterfor Irrigation ?

84% of total water in Indiais utilized in irrigation

Increasing Efficiency ofQuantum of Agri-Inputs?

Input Use Efficiency - A viable option amidstconstraints

Total Water reserve in India

Ground Water

39%Surface water

61%

31

2 Ground Water 64%

Surface water

36%

84% utilizedin Irrigation


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THE WAY OUTDrip irrigation has promising benefits and ability to address many of the irritants,farmers face today

Increasing farmproductivity

Judicious use ofscarce resource

Advanceagri-practices

Addressingagri-inputsconstraints

Smart irrigationRain water harvesting

Community Irrign.

Reducingburden on

ground water

Agri-extension,Govt. supportPPP model of tech. dissemination

Technologydissemination

& infrastructuresupport

Farm mechanizationOptimum utilizationof resources


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NEEDFUL TO BE DONECreating awareness about Drip Technology is the key to address the challenges,farmers face today

Creating awareness about improvedagricultural practices(INR 7.26 billion allocated in FY13-14 for trainingand extension by Central Govt.)

Bring commodity crops under micro-irrigation(80% of the area under commodity crops is still left out)

More and more area under micro-irrigation(Current penetration is just 10%)

Disseminate modern technology(Through extension services, PPP model, etc.)

Encourage community irrigation


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MI INDUSTRY FACT SHEETMI industry has to traverse a long distance despite huge potential, proven benefitsand govt. intention to support

History of MI in India dates back to mid 80s in Maharashtra

A task force constituted in the year 2003 to suggest synergisticblend of technology and policy on Micro-Irrigation in the country

A detailed report on this came in January 2004 suggesting -

Reduction on taxes levied on micro -irrigation system Easy availability of credit through financial institutions Building of a strong institutional support for overseeing the

development

Financial Assistance to Micro Irrigation in the form of Subsidystarted in the country in 2005


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MI INDUSTRY FACT SHEETMI industry has to traverse a long distance despite huge potential, proven benefitsand Govt. intention to support

NCPAH had been entrusted the responsibility to monitor theprogramme of MIS/NMMI in different states

It remained as MIS till June 2010 when Government of Indiadecided to elevate the status of MIS as NMMI

Under NMMI, new guidelines came into existence removingmajor irritants

As per Task Force report, ultimate potential for Micro-irrigation inthe country is 69 million ha and should be covered by 2030

Effective 1st April 2014, NMMI has been subsumed under NMSANMSA is National Mission on Sustainable Agriculture


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POTENTIALWith little over 10% of micro-irrigation penetration in the country, remaining largeirrigated area offers huge potential

Largest Irrigated Areain the world at

44% (63.2 M ha)

Table Source: Agriculture Statistics 2010

Land Use Classification

Area Million ha % of Total

Geographical Area 328.7 100%

Gross Cropped Area

% of Agri Land

Net Irrigated Area 63.2 44%Gross Irrigated Area 86.5 45%

Net Sown Area 139.9 43%193.2 59%


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POTENTIAL

Source: Task Force on Micro Irrigation Report, 2005Source: Est. area coverage by March 2013 - NCPAH

Drip Irrigation Potential (M ha): Crop wise

7.0

4.33.8

1.4

3.9 3.63.0

Cotton S/Cane Oil Seed Spices Fruits Veg. Plantn.

Micro Irrigation Ultimate micro irrigationpotential - 69 Million ha

10 % of the potential i.e.6.9 million ha is coveredunder micro-irrigation andleft out potential comes to62.1 Million ha

Potential & Coverage so far

Drip Irrigation Ultimate Drip potential -

27 Million ha9.5 % of the potential i.e.2.57 million ha is coveredunder Drip-irrigation andleft out potential comes to24.43 Million ha

With little over 10% of micro-irrigation penetration in the country, remaining largeirrigated area offers huge potential


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DRIVERSRapidly growing population, increasing food requirements and water scarcity arethe key drivers

Population Growth

Increase in Population & Food Requirement

(Billion)

0.440.55

0.680.85

1.03

1.60

1961 1971 1981 1991 2001 2050

Food Requirement (Million Tonnes)

82 108.4129.6

176.4209.8

1960 1980 2000 2050

Source: State of Indian Agriculture 2012

450

255

Population by 2050 expected at

1.6 BillionFood requirement by 2050 estimated to be

450 Million TonnesSource: Census of India, 2010


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DRIVERS

Continuously increasing demand & static supply of water

Source: IWMI Report, 2013, Task Force Report on Micro Irrigation, 2005

Agriculture Labour Shortage Deficient Power

Other Agri-inputs Constraints Shrinking Cultivable Land

Irrigation

Drinking Water

Industry

Energy

Others

Total

Sector

688

56

12

5

52

813

2010

Water Demand in BCM

2025

910

73

23

15

72

1,093

1,072

102

63

130

80

1,447

2050Water requirement by 2050 will be

1,447 Billion Cubic Meter

Utilizable water by 2050 will be

1,123 Billion Cubic Meter

Rapidly growing population, increasing food requirements and water scarcity arethe key drivers


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SUBSIDY ALLOCATION OVER THE YEARSIncreasing fund allocation by both Central and State Govt. is a welcome sign -needs more and more of the same

276373

484 567

808

10701226

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14

14941660

Subsidy Fund Allocation Government of IndiaIn INR Crore

Last five years it has slowed down considerablyHowever, inflow from other schemes has been encouragingState Government support is the key

Estimated pendency of subsidy INR 1000 Croresas on 31 st March, 14

CAGR 19.70%

CAGR 27.12%


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SUBSIDY FRAMEWORKComplex procedural formalities, fund insufficiency and delay in disbursal needsproper attention

Farmer

MI Industry

Dealer

Ministry of AgricultureCentral Government

State ImplementingAgencies

Horticulture Department

District MI Office

Allocates 40-50%subsidy basedon the NMMIGuidelines

State Govt. adds

its portion of subsidy

Cumulative subsidydisbursed to respectivedepartments

Subsidy allocated

to districtMI Office

Subsidy disbursed tobeneficiaries by thedistrict MI Officers

Agriculture Department


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KEY PLAYERSNetafim and Jain hold the key having 70% market share in the industry

H I G H L I G H T S

Major Players - Jain Irrigation, Netafim, Finolex,EPC Mahindra, Premier, Parixit

Prevalence of local players in concentrated pockets

About 100 have local presence, typically having thefollowing characteristics-

Regional/area specific presence & Low cost offerings

Quality adherence and legal compliance not strict

Strong PR and Liaison at local Govt.

Total MI Players

Only Drip

Only Sprinkler

193

Both Drip andSprinkler

12

89

92


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NETAFIM INDIA


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Emergence of a promisingorganisation

JointVenture

THE JOURNEY SO FAR

1997 1998

Entry inIndia

Business started

with association ofJalbindu AgritechPvt. Ltd., Mumbai

Excel Drip &

Agriservices Pvt. Ltd.renamed asNetafim IrrigationIndia Pvt. Ltd.

Netafim lineage, Best-in-Class Products, Service Competence & UntiringCustomer Commitment have been our strengths

1989

JV formed between

Netafim, Jalbindu &Excel Industries Ltd.,Mumbai, as ExcelDrip & AgriservicesPvt. Ltd.


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ExpandingProductionCapacities &TSMG Study

Formationof GGRC

THE JOURNEY SO FAR

2005 20082003

ProductionFull Fledged

Netafim India playeda key role in opinionbuilding and policyformulation of GGRC

2nd ManufacturingPlant commissioned atChennai, Tamil NaduTSMG study onstrategic restructuringof the organization


1st ManufacturingPlant inaugurated atVadodara, Gujarat


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Marchingahead,full steam

Emerging asNumero Uno

THE JOURNEY SO FAR

2011 20122009

SBUFormation

Netafim India

became No. 1subsidiaryof Netafim Ltd.globally

SBU structure came

into existence

3rd manufacturing

plants inaugurationat Vadodara



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GROWING TO SERVEWe are one of the fastest growing organizations in the sector

Farmers(No.)

Area Covered(Ha)

Exponential growth in touching the livesof Indian Farmers

A testimonial to our commitment ofspreading drip benefits

By 2013

5,870

340,000 421,000

By 2003 11,289


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GROWING TO SERVE

2009 2010 2011 2012 2013

CAGR

20.2%MUS$

CAGR26.2%INR Cr.

We are one of the fastest growing organizations in the sector


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OUR OFFERINGS

Irrigation Green House Automation Products

We offer irrigation solutions for both open field and protected cultivation alongwith automation products

Comprehensive range

of products for bothopen and protectedfield crops

Committed to qualityassurance andexemplary services

Turnkey offerings for

protected cultivation indiverse agro-climaticzones

Holistic solutions forassured and qualityproduce

Modern Automation

equipments for arange of requirements

Precise nutrigationand hassle freeoperational control


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SERVICE SUPPORT

Agronomy

Experts of their fields,our Agronomistsprovide the bestguidance for Waterand FertilizerManagement andCrop Cultivation

Practices via variousinterfaces like:

We believe in investing time and resources for keeping our technical & servicecompetence to an exemplary level, all the time!

FertigationIrrigation

Good Agricultural PracticesPlant Protection


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Farmer Meeting

Experts Visit

Farmers Tour

Crop Seminar

More than 3000Farmers meetings and4000 field visitstouching more than500,000 farmers in ayear

Agronomy contd.

SERVICE SUPPORTWe believe in investing time and resources for keeping our technical & servicecompetence to an exemplary level, all the time!


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After SalesTechnicalServices

Technical Expertisefor proper operationand maintenanceguidance of ourirrigation products

Technical Field Support

Maintenance Training

Installation Support

Service Campaign



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Training

Extensive trainingsboth classroom andon the field relatedwith products, cropand technology



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SERVICE SUPPORT

Design

Highly precise,customized and tailormade designs aimed atoptimum performanceand cost efficiency

We believe in investing time and resources for keeping our technical & servicecompetence to an exemplary level, all the time!


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Subtitle, date, Presenters nameshould be in lowercase

- AN INTRODUCTION

YOUTHANK

about netafim india

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