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CHAPTER - VI

A Case study of Jain Irrigation Industry

6.1 Introduction

6.2 History of Jain Industry.

6.3 Drip irrigation

6.4 P.V.C. Plastic Pipe and Fittings

6.5 Protected cultivation.

6.6 Food Processing

6.7 Plastic Sheets

6.8 Jain Renewable energy

6.9 Financial Status

6.10 Investment Argument.

6.11 Industry Overview

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CHAPTER - VI

A Case study of Jain Irrigation Industry

6.1 Introduction:

In last chapter we have discuss about General Distribution of

Industries, Type of industries and their Spatial Distribution, Location

pattern of industries, Agro based Industries in Jalgaon District Chemical

industries in Jalgaon District, Plastic indistinct in Jalgaon district , Building

Material and furniture, industries, Engineering and Electrical Industries,

Textile, Industries, Paper and Paper printing industries, other services, states

& Industrial area in Jalgaon.

Industrial turn over Tahsilwise studied case study of Jain industries in

Jalgaon district.

6.2 History of Jain Industry:

The beginning of the roads to success our journey began in 1887

when our forefather left the deserts of Rajasthan, their home state, in search

of water and food and reached Worked at the two tahsils of the famous

Ajanta caves. They started farming as a means of livelihood. In 1963 selling

kerosene in pushers . The young law graduate Bhavarlal Jain founded the

family business in trading. The family partnership with a meager Rs. 7000

accumulated savings of three generations as capital soon agencies for two

wheelers auto vehicles and automobile accessories were established in quick

succession.

Inspired by a quote "Agriculture" a profession with future young Jain

added dealership of tractors sprinklers systems PVC pipes and other farm

equipment. In order to broad base the agro- business agencies for farm

inputs such as fertilizers seeds pesticides were also added. Sales grew from

Rs. 1 million in 1963 to Rs. 110 millions in 1978 a phenomenal

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Increase of 110 times these formative years helped us build a unique

and lasting enterprise. This was achieved through consistent high standard of

performance and personal behavior on the one hand and a strong sense of

commitment for meeting targeted volumes and for payment of debts in time

on the other Dealings with national and international principals was a

contributing factor towards building these attitudes. In time we came to be

recognized as a reputable trustworthy and prestigious house. This

background augured well for an entry into industrial ventures.

Refined Papain:

The company took over a 14 year old sick Banana powder plant in

April 1978 at a high auction price of Rs. 3 million while we only had Rs. 0,2

Million as inevitable surplus. The plant was quick 17 modified for the

production of papain from papaya latex. In December 1978 the founder

traveled to Newyork 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 company developed purified papain through cease

else’s in house R & D and emerged as the number one supplier of the

highest purity refined papain. Thus papain put us on the international map.

After refined papain powder the company was started the production

of P.V.C. pipes for the irrigation use. In 1980 Manufacturing of PVC pipes

commenced with a small annual capacity of 300 mts. which was increased to

over 35600 mts per annum by 1997 making us the largest single producer of

pvc pipes in the country 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 us

at the for front. This further helped us to expand.

The range to casing and screen piping system there by continuing to

contribute to the growing export volumes.

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In 1989 company was started micro irrigation systems in Jalgaon. At

that time company has toiled and struggled to pioneer water management

through micro irrigation in India. We have successfully introduced some hi-

tech concepts to Indian agriculture such as integrated system approach one

stop shop for farmer. Infrastructure status to micro irrigation and farm as

industry then company have come a long way.

In 1994 company was set up world class food processing facilities for

dehydration of onion vegetable and production of fruit purees concentrates

and pull. These plants are ISO goo and HACCP certified and meet

international FDA statute requirements combining the modern technologies

of the west with the vast mostly untapped agriculture resources of India

using the local human resources and including the culture of excellence in

quality and total customer service. We have set ourselves as gool to become

a major and reliable global supplier of food ingredients of finest quality.

Today the company with over 7000 committed employees strength

worldwide they have established their leadership in diverse products like

micro and sprinklers irrigation. Agricultural inputs- Agro processed

products plastic pipes and sheets.

Jain irrigation systems ltd. is now a billion dollar company with 23

manufacturing plants spread over 5 continents and employs more than 7000

associates. Jains products are marketed in over 110 countries with support of

6700 dealers 93 offices and 40 warehouses.

The company has a young green Energy:

Division which manufactures appliances and applications using solar

thermal and solar photovoltaic technologies. The division has developed

solar pump for use on the farm reducing the farmers dependents on the

unreliable grid supply. Apart from solar pumps the company produces hot

water and lighting systems for a small households to large establishments.

The division also runs a bio gas based power generation plant vying the

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waste from the farm and the food division plants and supplies up to 1.6 mw

of power on a continuous basis. Jain's also produce plastic sheets of up to

30 mm thickness as a substitute for wood panels for use in making of

furniture doors. window, partition blocks. roofing, signage etc. A life time of

commitment to conserve water enhance productivity of the farmlands to

ensure food securing for all and prosperity to the farmer by constant

innovation and introduction of modern yet affordable and viable

technologies is core to Jain's way of life. The untiring efforts in pursuits of

excellence innovations and initiative have earned the company and chairman

of company numerous awards and accolades totaling to more than 160 from

national and international organization and governments Mr. Bhavarlal

Jain's significant contribution in the field of agricultural science and water

conservation technologies has been recognized by the academic world.

Who have honored him with four honorary Doctorates and by Government

of India who have honored him with its highest civilian award "Padamshri."

6.2 Drip irrigation system:

Drip irrigation is today's need because Water - nature's gift to

mankind is not unlimited and free forever. World water resources are fast

diminishing. The one and only answer to this problem is Jain Drip Irrigation

Systems."Jain Drip" the name which you can trust, the only

manufacturer of all drip irrigation components.

After detailed study of inter- relationship among soil, water, crop,

land terrain and related agro climatic conditions, Jain's design a suitable and

economically viable system to deliver a measured quantity of water at the

root zone of each plant at regular intervals. This is to ensure that the plants

do not suffer from stress or strain of less and over watering. The system

installed at the farmer's field is commissioned and training imparted to the

farmer, followed by regular after sales services.

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The result - A totally customized, efficient and long life system which

ensures saving in water, early maturity and a bountiful harvest, season after

season, year after year. Apart from all this, savings in labour and fertilizer

costs.

By installing Jain Drip you will be a member of a happy family of

Jain Drip System owners.

Why Jain Drip Irrigation Only?

Based on careful study of all the relevant factors like and topography,

soil, water, crop and agro-climatic conditions, we select the most suitable

and scientific micro irrigation system. Jains offer you a complete system

for you crop so that you reap all the benefits.

We at Jain Irrigation do not merely sell the micro irrigation system, we

provide Agronomic and extension support, after sales services and all

technical supports for ……

Getting better crop returns And for this, we have more than 300

technocrats, engineers, agronomists, horticulturist and regional offices, as

well as trained dealers, distributors all over India and abroad.

Jains are a one stop shop for total Agricultural input needs. We have the

capability and adequate support infrastructure to take up total turnkey

Agricultural Development Projects of any size within the country or

abroad, irrespective of land, topography, soil, water and other Agro

climatic conditions.

Jain Micro irrigation System is made from high quality virgin raw

materials , using advanced machinery. It is durable, reliable and meets

international quality standards.

Apple, grapes, banana, sugarcane, tea, coffee, cotton, mango, take wood,

vegetables, flowers, whatever may be your crop, we have a suitable

micro irrigation system for each of them. All the system components are

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manufactured by us in our plant at Jalgaon, under strict quality control

norms at every stage of production.

Jains have been exporting various components of Micro Irrigation

System to countries in Europe, America, Africa, South East, Middle East

and Far East Asia.

Jain Micro irrigation System means a technology developed for farmers

by a company who knows and understands the farmer and his needs for

four decades.

Benefits of Jain Drip Irrigation Systems:

Has recorded increase in yield up to 230%

Saves water up to 70% compare to flood irrigation. More and can be

irrigated with the water thus saved.

Crop grows consistently, healthier and matures fast.

Early maturity results in higher and faster returns on investment.

Fertilizer use efficiency increases by 30%

Cost of fertilizers, inter- culturing and labour use gets reduced.

Fertilizer and chemical treatment can be given through Micro

Irrigation System.

Undulating terrains, Saline, Water logged, Sandy & Hilly lands can

also be brought under productive cultivation.

Model Design:

Drip irrigation system delivers water to the crop using a network of

mainlines, sub- mains and lateral lines with emission points spaced along

their lengths, Each dripper/ emitter, orifice supplies a measured, precisely

controlled uniform application of water. nutrients, and other required

growth substances directly into the root zone of the plant.

Water and nutrients enter the soil from the emitters, moving into the

root zone of the plants through the combined forces of gravity capillary. In

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this way, the plant's withdrawal of moisture and nutrients are replenished

almost immediately ensuring that the plant never suffers from water stress,

thus enhancing quality, its ability to achieve optimum growth and high yield.

Picture No.6.1

Model of Jain Irrigation System

Drip Irrigation systems Polyethylene hose and PE tubes are used as a

sub main lateral pipe in Micro irrigation system. These hose and tubes are

UV stabilized and are able to withstand environmental effects.

Range of Drip irrigation system:

Jain Emitting pipe:

Emitting pipe play a key role in irrigation system. Jain Emitting pipe

are manufactured from virgin special grade polyethylene. Resistant to ultra

violet (vv) radiation and other environmental effects.

Polyethylene hose and PE tubes are used as a sub main hateral pipe in

micro irrigation system. these hose and tubes are vv stabilized and are able

to withstand environmental effects.

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Online Drippers:

Emitters /Emitting devices are used for online irrigation system.

Each of our emitter is designed to suit difficult soil conditions, water needs

of various crops, difficult water quality and numerous requirements of

agriculture.

Micro Sprinklers & Jets:

Min Sprinklers are used for irrigation of seasonal crops like

vegetables, onions, potato, nurseries etc. Made of engineering plastic and

available in different connection options.

Fogger and Misters:

Foggers and misters are used to maintain humidity or temperature

control in greenhouse, shade house.

Bubblers:

Bubblers are used for high volume irrigation. It is available in

adjustable flow type and pressure compensating type bubbler. Bubbler

manufactured from stable engineering plastic.

Control & Safety Valves:

We provide complete solution for control and safety valves. Our high

performance valves are with manual and or automatic control. Our plastic

valves are cost effective. easy to install & maintain, value driven and

customized for specific requirement.

Fitration Equipments:

Water does not found in its purest from in nature. It always

contaminated with physical, chemical & biological impurities. Proper

filtration is of much importance to prevent low pressure diffuser like

emitters from clogging.

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Fertigation & Chemigation Equipments:

Fertigation system & Chemigation equipment is a need for today's

irrigation system. Optimum and efficeint use of fertilizers is one of the

major advantages of drip irrigation systems. We are well aware that success

of micro irrigation system lies in precise application of fertillzers.

Poly fittings & Accessories:

Poly fitting manufactured from reinforced PPCP, Excellent chemical

and weather resistance. Jain Poly Fittings and Accessories help you to obtain

a most reliable irrigation system. Leak proof, snap proof fittings.

Jain Gravity Drip Kits:

Jain irrigations journez of "working with farmers" continues with a

focus on small farmers. Among the small farmers too, majority are without

an independent water- source.

Design & Technical information:

An irrigation system is a sophisticated and complex one, in which

each component plays a very improtant part.The reliability and effieiceny of

an irrigation systems is a function of, superiro product, proper & skilled

services and professional design.

6.4 P.V.C. Pipes and fittings:

Jain PVC Plastic and Pipe fitting are available in vast range and in

various materials, Whatever be your application. They have the Piping

system- that can be installed on surface, buried, slip lined, trench less,

floating and submerged. Jain PVC Plastic pipes can be used in Fluids

transport, include, for Lifting, Transporting, Conveying, Distributing

Disposing or Tapping of Water, waste- water (drainage & sewage),

compressed gases air , odorous and corrosive gasses, chemicals and

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hazardous wastes /effluents. Solids conveyed include coal ash, slurries, sand

and cables.

Whatever They manufacture They have aligned with conservation,

Water & Energy conservation and nature protection with our products like

PVC Plastic Piping systems , Solar Water Heating Systems, Micro Irrigation

Systems, Food Processing and Plastic Sheets.

Jain Piping systems are manufactured in our most modern

manufacturing and testing facility. Jain Irrigation today, is one of the largest

polymer processors in India. PVC, PE, PP along with Engineering Polymers

like PC, PBT, Nylon, ABS etc. totaling to over 300,000 MT are being

extruded and injection molded.

In Piping Systems They have systems from Water to Gas distribution,

chemical to Cable conveyance; Groundwater tapping to waste disposal;

Micro Irrigation to lift irrigation, Hand pumps to house service connections.

This unique range of products complemented by excellent quality and

services.

Jains unflinching efforts in the pursuit of excellence, appropriately

blended with 3her ongoing Research and Development efforts have earned

the Company the highest R & D awards of the country and numerous other

recognitions & awards for their performance in Exports and Marketing.

They are also accredited with ISO-9001 by RWTUV Germany. They have

an R & D laboratory with a vast range of routine test facilities in addition

to may sophisticated equipment belonging to the category of state of the at

technology. This laboratory has been approved by DSIR i.e. Department

of scientific and Industrial Research, Ministry of science and technology

and is also a two time recipient of the National award from the same

department for its R&D efforts in Industry.

They wonder if anyone else in the world has stretched plastics so

much, so far and so well under one roof.

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Pipes and pipe fitting range includes:

Jain PVC Plastic Pipes & Fittings Used for conveyance of water in

drip sprinkler irrigation systems, lift irrigation systems, surface irrigation

systems, subsoil drainage system, Jain uPVC will casing & scree pipes.

Pipes :

Manufactured from special PVC compound having extra toughness.

Anti corrosive. PVC being an inert material most of the chemicals found in

soil and water do not affect the casing and screen.

Jain uPVC Column & Riser pipes :

Most suitable for use as submersible column pipe.

Picture No.6.2

Riser pipes

B- sure uPVC plumbing system:

Residential & commercial complex/ Township / High rise buildings /

hospitals & Industrial plumbing .

B- Sure uPVC SWR piping system: B- sure uPVC drainage & sewerage

pipe.

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Jain PVC Cable Duct Pipes :

Smooth inside and outside walls for quick laying and easy drawing

of cables.

Picture No.6.3

Fittings & Accessories

Turnkez projects & services:

water supply projects

6.5 Protected Cultivation :

Protected cultivation is future because Land and Water - Natures gift

to mankind is not unlimited and free forever. Every day population is

increasing and due to modernization the infrastructure work in increasing

and day to day agricultural land is becoming less and less and at the same

time the land vale is increasing. Also world water resources are fast

diminishing. The one and only answer to this problem is Jain Protected

Cultivation. “Jain greenhouses" the name which you can trust and the only

manufacturer of structures and Micro Irrigation System components.

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After detailed study of inter relationship among soil, water, crop,

land terrain and related agro climatic conditions, Jains design a suitable and

economically viable system to the grower which protects the crop at certain

limits and deliver a measured quantity of water at the root zone of each plant

at regular intervals. This is to ensure that the plants do not suffer from stress

or strain of less and over watering, different climatic conditions. The system

installed at the farmer's field is commissioned and training imparted to the

farmer, followed by regular after sales services.

The result- A totally customized, efficient and long life system which

ensures better yields through protected cultivation and saving in water as

well, early maturity and a bountiful harvest, season after season, year after

year. Apart from all this, savings in lobour and fertilizer costs.

By installing Jain Greenhouses, you will be a member of a happy

family of Jain Greenhouse system owners.

Why Jain Greenhouses only ?

Based on careful study of all the relevant factors like land topography,

soil, water, temperature, Humidity, wind/ agro- climatic conditions and

crop, They select the most suitable and scientific Greenhouse/ Poly

house/ Poly tunnel/ Net houses along with irrigation and Cooling /

Heating / fogging system. Jains offer you a complete system for your

crop so that you reap all the benefits.

Jain irrigation do not merely sell the Greenhouse/ Poly house / Poly

tunnel/Net house; They provide Agronomic and Extension support, after

sales services and all technical supports for getting better crop returns.

And for this they have more than 500 technocrats, engineers,

agronomists, horticulturists and regional offices, as well as trained

dealers, distributors all over India and abroad.

Jains are a one stop for total Agricultural input needs. They have the

capability and adequate support infrastructure to take up total turn-key

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Agricultural development projects of any size within the country or

aborad, irrespective of land, topography, soil, water and other Agro

Climatic conditions.

Jain structures are made from good quality of steel and Micro irrigation

system are made from high quality virgin raw materials, using advanced

machinery. It is durable, reliable and meets international quality

standards.

Capsicum, Tomatoes, Cucumber, Roses, Gerbera, Carnation. whatever

may be your crop, They have a suitable, greenhouse/ Poly house/ Poly

tunnel / Net house for each of them. Most of the system components are

manufactured by in there plant at Jalgaon, under strict quality control

norms at every stage of production.

Jains have been exporting various components of greenhouse / Poly

house / Poly tunnel/ Net house to inside country and in Asia, Africa and

Far East Asia.

Jain Greenhouse / Poly House / Poly Tunnel/ Net house means a

technology developed for farmers by a company who knows and

understands the farmer and his needs for four decades.

Benefits of Jain Greenhouses :

Has recorded increase in yield up to 5 to 8 times.

Saves water up to 50% compare to open filed flood irrigation. Higher

yield from smaller area.

Crop grows consistently, healthier, uniform quality fruits and matures

fast.

Early maturity results in higher and faster returns on investment.

Fertilizer use efficiency increases by 30%

Cost of fertilizers, inter culturing and labour use gets reduced.

Fertilizer and Chemical treatment can be given through Micro Irrigation

System itself.

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Undulating terrains, Saline, Water logged, Sandy & Hilly lands can also

be brought under productive cultivation.

Picture No.6.4

Model Design

Greenhouse/ Poly house/ Poly tunnel/ Net house which protects the

crop from High intensity of light, High rainfall, winds, insects through

structure, polyethylene film/ polycarbonate sheet, shading nets/ Thermal

Nets, Insects Net, Cooling Pad, Exhaust Fan, Foggers and drip systems,

Fertigation Equipment etc. which controls light, temperature, humidity and

irrigation with Fertigation and other required growth substances directly into

the root zone of the plant.

Water and nutrients enter the soil from the emitters, moving in to the

root zone of the plants through the combined forces of gravity and

capillary. In this way, the plant's withdrawal of moisture and nutrients are

replenished almost immediately, ensuring that the plant never suffers from

water stress, thus enhancing quality, its ability to achieve optimum growth

and high yield.

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Range of protected cultivation :

I. Green House:

Green House are climate controlled. Jain Green Houses have a

variety of applications, the majority being, off- season growing of

vegetables, floriculture, planting material acclimatization, fruit crop

growing for export market and plant breeding and varietals improvement.

Picture No.6.5

Green House

II. Poly House:

Poly houses are basically naturally ventilated climate controlled.

Jain poly houses have a variety of application, the majority being, growing

of vegetables, floriculture, planting material acclimatization, fruit crop

growing for export market.

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Picture No.6.6

Poly House

III. Poly Tunnels :

Poly Tunnels are basically naturally ventilated climate controlled .

Jain ply tunnels have a variety of applications, the majority being, growing

of vegetables, floriculture, planting material acclimatization, fruit crop

growing for export market.

Picture No.6.7

Poly Tunnels

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IV.Net House:

Net houses are basically naturally ventilated climate controlled. Jain

net houses have a variety of applications, the majority being, growing of

vegetables, floriculture, fruit crop growing for export market.

Picture No.6.8

Net House

6.6 Food Processing :

Farm Fresh, The Origin :

They at Jains, Jalgaon manufacture Dehydrated Onion and vegetable

products and Aseptic fruit purees, concentrates, clarified juices, IQF, and

Frozen products of finest quality. They market these under our brand name

Farmer Fresh.

For Centuries, India has been the premier supplier of spices & tea to

the world. It is also the second largest producer of fruits and vegetables in

the world. Fertile soils, a dry climate. clean water and abundant sunlight

help the hard working farmers to produce a bountiful harvest. Though vat,

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these resources have so far remained mostly untapped. Jains have the most

controlled modern, world class fruit processing facility setup at Jalgaon.

Selected varieties of Banana, Guava, Mango, Pomegranate, Aonlas,

Papaya and Tomato Puree are grown in the farms and processed in the plant.

Integrated Approach Evolved by Jains:

They have dedicated ourselves to the development of agriculture and

agro processing and have evolved an integrated approach. First They help

the Indian farmers to produce more and better quality produce by providing

genetically superior planting materials, efficient water and fertilizer

management system and agronomical guidance. They are the largest supplier

of these products and services to the Indian growers. They then buy the

fruits and vegetables from the growers and process them at our most

modern processing facilities. They produce the finest quality dehydrated

onion & vegetables products aseptic fruit purees, pulps & concentrates and

export these to our customers throughout the world.

Quality Excellence:

Jains are devoted to manufacture Farm Fresh dyhydrated onion and

vegetable products, aseptic fruit purees, pulps and concentrates of the finest

quality. Our commitment to quality, and R & D product innovation is deep

rooted.

GMP, QA, SPC, Strict sanitation, hygience, HACCP food safety and

ISO 9001:2000, Quality Management systems are applied throughout the

manufacturing. They have evolved & implemented very elaborate quality

management system starting from raw material to delivering finished

products to our quality conscious customers throughout the world. Dry

climate, fertile soils and sanitary plant design enables production of

FARMFRESH products of finest quality and consistency.

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The Food Divisions are accredited by Food Cert, Netherlands; for

ISO 22000:2005 FSMS, the latest international Food Safety Standard, In

addition, the ' Onion and Vegetable Dehydration' Division is accredited by

Food Cert, Netherlands; to BRC (British Retail Consortium) Global standard

- Food. They have established modern laboratories including microbiology,

pesticide. Including microbiology, pesticide residues & heavy metal

analysis and sensory evaluation) for analysis and testing, backed by the team

of highly qualified & experienced scientists & They have also established R

& D centers, both at the laboratory and in the field.

Service Excellence :

They have established sales and service network to service our

customers throughout the world. Farm fresh products are readily available

from their regional sales centers and warehouses, strategically located in

different parts of the world. Their dedicated sales teams are available to

discuss individual customer requirements and will make every possible

effort to provide you the finest, quality farm fresh food products &

services. They are committed to their total customer's satisfaction.

Combining the food processing modern technologies of the west with the

east, largely untapped agriculture resources of India, using the local human

resources and including in them the culture of excellence in quality and

total customer service, They have set for ourselves a goal to become a major

and reliable global supplier of food ingredients of finest quality.

Jain processed food product range:

Standerd dehydated white onion sliced:

Canned soups, salads, hamburgers, pizzas & other fast food

preparations, can be easily used in salads & other preparations.

Satandard Dehydrated White Onion- Large Chopped:

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Dry soup mixes, sauces, Specialty / ethnic food preparations, canned,

dry or frozen vegetable mixes, dry casserole mixes, stuffing mixes , food

service & fast foods.

Standard Dehydrated white Onion - Standard Chopped:

Dry soup mixes, sauces, specialty/ ethnic food preparations, canned

soups, dry or frozen vegetable mixes, dry casserole mixes, stuffing mixes,

food service & fast foods.

Standard Dehydrated white onion - Small chopped:

Canned stewed tomatoes, green beans, peas & other vegetable &

meat preparations/ mixes, uniformly sized pieces suited for dispensing

machine.

Standard Dehydrated white Onion - Minced:

Soups, sauces, canned / dry/ frozen food, salad dressings, meat

products, other food products wherever onion flavor & taste desired. Ideal

for repacking for retail stores.

Standard / Dehydrated white onion - Granulated:

Vegetable & meat preparations, gravies, sauces, seasonings, cheeses,

crackers etc. Ideal for retail packs suitable for metering devices.

Standard Dehydrated White Onion - Kibbled:

Used in varied food preparations Wherever onion flavor & taste is

requires & appearance & texture of onion is desired.

Standard Dehydrated white onion- special Large chopped:

vegetable & meat preparations, gravies, sauces, seasonings, cheeses,

crackers etc. Ideal for retail packs suitable for metering devices.

Standard Dehydrated white Onion- 6mm Diced:

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Food processing Highly uniform particle -size makes this an ideal

replacement for IQF of frozen diced onions used in varied food

preparations.

Speciality Dehydrated Onion Red onions :

The products are manufactured from selected red onions. All white

onion products are available as red onions.

Speciallity Dehydrated Onion Toasted Onions:

Canned, stewed tomatoes, green beans peas & other vegetable &

meat preparations/ mixes, noodles, ethnic preparations.

Speciality Dehydrated Onion Fried Onions:

Dehydrated onions are fried in vegetable oils. All onion products are

available as fried onions.

Standard Dehydrated Onion Powder:

Standard Dehydrated White Onion - Standard Powder:

Suitable for varied food preparations, wherever onion flavor & taste

is desired.

Fruit purees, pulp & concentrate :

Mango puree, Pulp & concentrate :

These are made from selected varieties of mango. Fully matured

mangoes are harvested, quickly transported to our fruit processing plant.

Banana Puree, Pulp & concentrate:

These are made from selected clones of the Cavendish variety. Fully

matured banana fruits are harvested and quickly transported to our fruit

processing plant, declustered, inspected and washed. Selected high quality

fruits go to controlled Ripening chambers.

Papaya Puree, Pulp & concentrate:

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These are made from selected varieties of Papaya. Fully matured

Papaya fruits are harvested, quickly transported to our fruit processing

plant, inspected and washed. Selected, High quality fruits go to the

controlled ripening chambers.

Guava Puree, Pulp & concentrate:

These are made from selected varieties of Guava. Fully matured and

ripened Guava are harvested, quickly transported to our fruit processing

plant, inspected and washed. Selected high quality fruits go to the

processing section.

Anolas Pulp & Concentrate:

Farm Fresh aseptic Aonla puree is manufactured from sound,

mature, selected Aonla - free from damage, soil & cuts. Selected Aonlas

fruits are sorted, washed inspected, cooked deseeded & pulped.

Tomato Puree & Concentrate:

Farm Fresh aseptic Tomato paste and puree are manufactured from

sound, mature, selected Tomato, free from damage, soil & cuts. Selected

Tomato fruits are sorted, washed, inspected, crushed & carefully pulped.

6.7 Plastic Sheet:

Ex-CEL Plastic Sheets, a registered brand in the world market since

1990 is manufactured by Jain Irrigation Systems Limited in their state of the

art facility equipped with " Cincinnati Milacron" and "Omipa" Machinery &

equipment at Jalgaon, India. Jains are today, the only manufacturer of PVC

& Polycarbonate Sheets under one roof in South East Asia. They are one of

the Largest Plastic processors in India, Processing over 100,000 MT of

different polymers per annum. The manufacturing facility is

ISO9001:2000&ISO14001-2004 certified by TUV Germany.Our products

are specially formulated at our They’ll equipped in - house R & D facility.

This R& D facility is also used for perfecting new product development and

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new applications coming up from interaction with our customers and end

users. Superior quality with prompt customer service, has assured JAINS

a committed customer support in the global markets since the last 26 years.

Picture No.6.9

Plastic Sheets

6.8 Jain Renewable Energy:

Jain renewable energy division is working with Solar thermal, Solar

photovoltaic, Wind, solar + wind hybrid systems and bio- energy related

manufacturing and application development. The current range includes

domestic, commercial and industrial Solar pothered pumping systems,

CFL/LED based home lighting , CFL/LED based street lighting, blinkers,

advertising boards, power packs (inverters), traffic signals, wind+ solar

hybrid systems, biogas plants and turnkey projects based on all the above

technologies. Jain solar powered pump is a new addition to this family. All

these products are in harmony with the group’s mission." Leave This world

Better Than You Found it".

234

Jain Solar Pothered Pumping systems are empanelled with MNRF.

The Jain PV solar panels & accessories required in Solar Pumping Systems

are exclusively manufactured and supplied by us under our warranty. At

present, pump sets have been manufactured by overseas top solar pump - set

industry leaders. They are tested and supplied & warranted by us and will

also be serviced in India by our country- wide distribution network.

6.10 Historical Financials (5 Years):

Table No.6.1

Financial History of Jain Irrigation System (5 year)

2009 2010 2011 2012 2013

Standalone

Financial performance (April- March) Revenue from Operations (Net of Excise duty)

21,789 27229 33309 37811 35109

Profit before interest, Depreciation, Taxation and Forex

Gain/ gain /loss (PBDIT)

4071 5884 7413 8542 6917

Finance cost 1563 1891 2284 3473 3897

Depreciation, amortization and Amount written off 520 781 956 1054 1600

Net gain loss on foreign currency transactions and translations

777 711 102 1289 934

profit before Extra ordinary and Exceptional items

and taxation

1842 3923 4275 2726 487

Profit Before tax 1842 3923 4275 2726 487

Taxation including MAT & deferred tax adjustments 636 1219 1322 42 186

Profit before tax 1206 2703 2953 2684 301

Prior period expenses 4 9 - 1 -

Net profit for the year (NP) 1202 2712 2953 2683 301

Adjusted net profit for the year 1979 2001 2850 3972 1235

Preference dividend including dividend tax 36 16 - - -

Equity dividend including dividend tax 220 402 450 471 266

Financial position as At March 31, Liability Shareholders’ Equity

9386 13406 16843 19120 23367

Redeemable preference share capital 449 23 - - -

Deferred Tax (Assets) Liabilities Net 707 1024 1224 1710 1810

Long term liabilities & provisions - - 94 37 71

Long term loans including current maturities 7503 9374 91559 12441 14416

Short term loans 6052 8462 12966 15800 14212

235

Other current liabilities excluding current maturities of

long term loans

7664 9328 13391 13991 13585

Total libailities 31762 41618 53677 63098 67460

tangible assets including CWIP 10441 13098 15644 19491 20184

Intangible assets 68 144 142 142 140

Long terms loans, advances & other noncurrent assets - - 2010 2796 3662

investment excluding liquid investments 3906 3955 4033 4307 7003

current assets excluding cash & cash equivalents 16467 20033 28018 33550 34754

Cash & Cash equivalent including liquid investments 879 4388 3830 2812 1717

Total Assets 31762 41618 53677 63098 67460

2009

2010

2011

2012

2013

Standalone

Ratio Analysis Current Ratio (Times)

1.26 1.37 1.14 1.13 1.20

Total Debt (3) Equity (Times) 1.49 1.33 1.31 1.48 1.23

Return on Average capital employed (4)

percentage

22.98% 23.02 2304 2064 14.05

Basic EPS 3.22 7.17 7.75 6.62 0.70

Diluted EPS 3.21 7.15 7.74 6.62 0.70

Basic Adjusted EPS 5.37 5.28 7.48 9.80 2.89

Equity Dividend 0.50 0.90 1.00 1.00 0.50

Book value 25.94 35.27 43.67 47.19 51.36

Number of ordinary & DVR Equity shareholders

37513 38968 63594 161945 167517

Market capitalization in million 24760 72864 69006 38916 27456

Non - promoters shareholding 67.53 69.16 69.60 69.65 72.54

2009 2010 2011 2012 2013

Consolidated

Financial performance (April- March) Revenue from Operations (Net of Excise duty)

28584 34200 41528 49206 50217

Profit before interest, Depreciation, Taxation and Forex

Gain/ gain /loss (PBDIT)

5139 6095 7894 9623 8236

Finance cost 1809 2155 2678 4074 4688

Depreciation, amortization and Amount written off 737 1127 1400 1599 2177

Net gain loss on foreign currency transactions and

translations

598 868 279 1664 1245

profit before Extra ordinary and Exceptional items

and taxation

1994 3681 4094 2286 125

Profit Before tax 1994 3681 4094 2286 125

Taxation including MAT & deferred tax adjustments 659 1203 1213 4 80

Profit before tax 1335 2478 2881 2282 45

236

Prior period expenses 4 9 - 4 -

Net profit for the year (NP) 1294 2476 2807 2235 31

Adjusted net profit for the year 1892 1607 2529 3899 1276

Preference dividend including dividend tax 36 16 0 - -

Equity dividend including dividend tax 220 402 450 471 266

Financial position as At March 31, Liability

Shareholders’ Equity

8522 12144 1558 17537 21680

Redeemable preference share capital 449 23 - - -

Minority Interest 705 571 524 498 -

Deferred Tax (Assets) Liabilities Net 340 610 662 1037 912

Long term liabilities & provisions - - 171 82 124

Long term loans including current maturities 9717 12702 12785 16036 18211

Short term loans 8452 11746 17057 21950 20041

Other current liabilities excluding current maturities of

long term loans

9636 10010 16222 16990 16311

Total libailities 37821 47806 62980 74130 77279

Goodwill on Consolidation 1669 1666 1716 1806 1759

tangible assets including CWIP 12691 16071 19254 23548 24522

Intangible assets 212 186 403 361 554

Long terms loans, advances & other noncurrent assets - - 1310 2327 3959

investment excluding liquid investments 201 211 211 236 38

current assets excluding cash & cash equivalents 21874 24619 35942 42086 44088

Cash & Cash equivalent including liquid investments 1174 5053 4144 3767 2359

Total Assets 37821 47806 62980 74130 77279

Ratio Analysis Current Ratio (Times)

1.27 1.36 1.12 1.08 1.15

Total Debt (3) Equity (Times) 2.18 2.02 1.92 2.17 1.76

Return on Average capital employed (4) percentage 2159 20.40 2095 20.05 1471

Basic EPS 3.48 6.54 7.37 5.51 0.07

Diluted EPS 3.46 6.53 7.36 5.50 0.07

Basic Adjusted EPS 5.13 4.23 6.63 9.62 2.98

Equity Dividend 0.50 0.90 1.00 1.00 0.50

Book value 23.55 31.95 40.33 43.28 47.66

Number of ordinary & DVR Equity shareholders 37513 38968 63594 161945 167517

Market capitalization in million 24760 72864 69006 38916 27456

Non - promoters shareholding 67.53 69.16 69.60 69.65 72.54

1) figures for financial year 2011, 2012 and 2013 and 2013 have been

arrived based on revised schedule VI as per MCA notification.

2) Net profit plus Net gain loss on foreign currency transactions and

translations

3) including redeemable preference shares capital

237

4) Average capital employed total assets less deferred tax assets less cash

& cash equivalent

5) Based on market price on national stock exchange NSE on 31st March of

the year.

6.10 INVESTMENT ARGUMENT:

India is set for a second Green Revolution', driven by the

government's thrust on improving agricultural productivity with heavy

investments in micro- irrigation systems. The government is likely to adopt

the recommendations of the Task force on Micro irrigation, which envisage

an investment of Rs. 615 bn in micro- irrigation systems (MIS) over the next

eight years. This amount is 300 times the industry's current annual sales.

JISL, the undisputed leader in MIS, would be one of the biggest

beneficiaries of this boom, The stock is trading at a PER of 5 and

EV/EBITDA of 2.8 on FY2006E -a very attractive valuation for a company

delivering an RoC of 27%. They initiate coverage with an outperformer, and

recommend buying with a two -year price target of Rs.250.

The second Green Revolution :

India is set for a second Green Revolution. The government is likely

to adopt the recommendations of the Task Force on Micro irrigation

(hereinafter, Task force) headed by Chandrababu Naidu, former chief

minister of Andhra Pradesh. If implemented, these recommendations would

bring about far reaching changes in Indian agriculture. One of the key

recommendations is to increase the area under irrigation by 3 mn hectares

over the Tenth Plan period (2004-05 to 2006-07) and a further 14 mn over

the Eleventh Plan (2007-08 to 2011-12). After 57 years of independence.

India has just 1.2 mn hectares under micro irrigation. This would entail an

investment of Rs. 615 bn (US & 137bn). They over the Tenth and Eleventh

Plan periods 2004-05 to 2011- 12. They expect new policy measures to

bring about significant improvements in productivity while conserving land

238

and water resources. Agree GDP has declined at an annualized rate of 2.1%

over the period 1971-2003 and its contribution to the country's GDP is at

23% the lowest ever. Implementation of the Task force's recommendations

may will drive a rise in this proportion.

Potential of MIS:

The commitment to implement the Task Force's report is visible in

the recent tenders floated by the government of Andhra Pradesh (AP.)

Project worth Rs. 12bn relating to micro irrigation are already under

implementation in AP, and the opportunity is pegged at ten times as much.

The Maharashtra government has already floated an Expression of Intent

(EoI) for a Rs.20bn MIP project. They expect the pace of these projects to

accelerate as benefits to all participants become evident.

Economic and commercial benefits for all:

Widespread adoption of MIS would benefit all constituents - farmers,

suppliers, bankers, and the nation at large. It would result in substantial

savings on infrastructural costs of irrigation projects, water requirement.

subsidized electricity supplied to the agriculture sector, and subsidies on

fertilisers, among other things. For farmers, MIS would increase yields and

cut payback time. Suppliers would gain from assured payments, and

bankers from increased relations with farmers.

With an RoI of 95%:

Covering 17mn hectares under irrigation by the end of the Eleventh

Plan would entail an investment of Rs. 672bn and the project would yield

benefits of Rs.1306bn, which represents and RoI of 95%. Adoption of MIS

is the only way that agricultural production and productivity can be

increased in a sustained manner. The technology will enable optimal

239

synergies of the three components of the Green Revolution improved seeds,

Water And Fertilizers.

Agri reforms to drive a surge in market capitalisation of MIS

companies:

There is a clear correlation between the implementation of major

reforms, and the market capitalizations of companies affected by such

reforms. Take the infrastructure sector, for instance. For almost a year after

the government announced key reforms for the sector (including the Golden

quadrilateral project) investors remained sceptical, raising questions on the

commercial viability and payback periods of such a huge programme. But

then, as investors understood the need for such projects, almost all

infrastructure companies saw a sharp rise in their market capitalization-

nearly 7-8 x over the past three years.

Strategic Importance to all constituents :

Government: Huge positive rub - off- an opportunity to boost rural

economy not through raising subsidies, but spurring a rise in farm incomes.

NABARD: Loans for micro irrigation projects will be treated ad priority

sector lending. Has an asset book of over Rs. 500bn and the agenda is to be

the farmer banker:

Banks: In the words of one banker They met." Not a single farmer having

drip irrigation has defaulted to us".

Suppliers: Assured loans from banks. No risks of supplies to farmers.

Huge economies of scale will aid profitability in due course.

Farmers: They met quite a few of them. Sample quote: "I will no add more

acreage under cultivation unless I have drip irrigation." Payback is within 18

months.

240

Agri reforms, They believe, present an even bigger opportunity, JISL

(market cap: US80mn), which is the biggest player in the segment, would be

the biggest beneficiary of this opportunity.

JISL is the biggest potential beneficiary of agri- reforms:

Jain Irrigation is Indias largest play on agriculture, with

manufacturing operations in micro irrigationsystems (MIS), pipes, plastic

sheets, and food processing. JISL has had a turbulent past since it raised

money through a GDR issue in 1994. After the issue, JISL overdiversified,

and its financial performance dived.

They believe that the worst is over and JISL is now a focussed play

on agriculture, particularly strong in MIS and plastics. The induction of

Aqua International Partners, a private equity investor, with a 43% stake has

given the company financial and operational stability. Business conditions

have also improved significantly with state governments of Andhara

Pradesh, Gujarat, Maharashtra and Rajasthan increasing their thrust on

irrigation . All of JISL's businesses are now registering strong double digit

growth rates. They believe that JISL, with its market share of 45% in MIS,

is the best bet on agri reforms.

Table No.6.2

Jain Irrigation System Ltd. business mix

Segments (FY04) Revenue growth (%) % of sales

MIS/SIS 911 84 22

Pvc/pe pipes 1482 16 35

PVC/PC sheets 955 15 23

Onion dehydration / Fruit

processing

739 36 18

Total Rs. mn 4179 30 100

241

JISL: Set for all - round growth :

MIS represents the biggest opportunity for JISL, but They also see

merits in its other businesses. Pipes (both PVC and PE) yield good cash

flows, although margins are low. Part of the business is a proxy for the

growth in MIS. There is also an opportunity to use PE pipes for gas

transportation, in addition to replacement demand. Pipes currently account

for 35% of JISL's revenues and 16% of its EBITDA.

They are optimistic on the growth prospects of JISL's PVC and PC

sheets business. The company has sold its PC sheets business to GE. The

unit has been leased back to JISL, which is free to sell its products in Europe

and the US. They expect rapid growth in JISLs PVC sheet business on the

back of exports. In the US low cost and ease of use are leading foam sheets

to increasingly replace lumber. PVC sheets accounted for 16% of JISL's

revenues in FY2004. In FY2005. They expect this share to rise to 23% while

its EBITDA contribution rises to 30%.

They expect significant improvement in the performance of the onion

dehydration plant. Dehydrated onions are used as inputs for pizzas and

ketchups, among other things. The plant is a 100% EoU, and the company

aims to triple its production capacity over the next three years. JISL is

currently operating with two additional plants taken on lease to cater to the

increased demand for dehydrated onion products. The company also has a

fruit - processing plant, and supplies to Coca Cola. This segment accounts

for 18% of JISL's revenues.

242

Attractive valuations:

JISL reported revenues of US $100 mn in FY2004, They expect the

company's revenues to grow by 62% in FY2005, and record a CAGR of

30% over the next four years. THEY expect an EBITDA of Rs.1.37 bn in

FY2005, and a margin expansiion of 350bps over the next four years. They

expect JISL to cut its leverage from the current 1.55 to zero in three years.

The stock is trading at a PER of 4.7 and EV/EBITDA of 2.7 on FY2006 E-

cheap for a company delivering an RoC of 27%. They initiate coverage on

JISL with an Outperformer rating. and recommend buying with an 18 month

price target of Rs.150.

KEY RISKS :

Delays in government orders:

The key risk in the business is the timing of government orders. They

have conservatively assumed only 10% of the opportunity identified by the

Task Force over the next four years. All the same, there could be delays in

the implementation of projects by state governments, which would have

implications for our sales forecasts and lead to significant variation in

quarterly earnings. All things considered, the government's thrust on

agriculture reforms means that there is no serious risk to our forecasts.

Management's Patchy track record:

Another risk is the management's track record. JISL has had a

turbulent past since it raised money through an EDR issue in 1994. After

the issue, JISL over diversified, and its financial performance dived, leading

to defaults on loan obligations. The company got into a cash crunch, and had

a leverage of 6.4x. The company did not record profits over the period

FY1997-FY2003. It has just managed to turn around in FY2004, with

marginal profits.

243

They believe that the worst is over and JISL is now a focused play on

agriculture, particularly strong in MIS and plastics. The induction on Aqua

international Partners, a private equity investor with a 43% stake has given

the company financial and operational stability. Business conditions have

also improved significantly, with state governments of Andhra Pradesh,

Gujarat, Maharashtra and Rajasthan increasing their thrust on irrigation . All

of JISL's businesses are now registering strong double digit growth rates.

They believe that JISL, with its market share of 50% in MISC, in the best

bet on agree reforms.

JISL, with its market share of 45% in MIS, and strong franchise with

farmers, is our play on the structural upswing in agree reforms. They expect

MIS to contribute 35-40% of the company's revenues and EBITDA over the

next three years.

6.11 INDUSTRY OVERVIEW:

The agriculture sector has suffered from counterproductive policies

for decades now. Heavy subsidies have constrained the government's ability

to invest in irrigation systems and other productivity- improvement

measures. This is beginning to change now, with the government thrust on

promoting productivity in agriculture. Some states, among them Andhra

Pradesh and Maharashtra, have already drawn up plans to invest Rs.12nb-

23bn in micro- irrigation systems MIS over the next three years.

Counter - productive agriculture policies:

The agriculture sector has been virtually ignored for a long time now

and suffered from what they believe are counterproductive policies, among

them:

1) Provision of minimum support prices for rice and wheat.

2) Heavy subsidies on inputs like fertilizers, water and power and

244

3) Limited and declining public investment in the sector.

These policies have produced adverse results, in their view.

The government’s guarantee of minimum support prices (MSP) for

wheat and rice requires it to procure these grains directly from farmers at

pre-determined rates. Political compulsions have led to such a rise in

MSP that since the mid 90s, domestic prices have been higher than

international prices. This has hit the country's export competitiveness

and at the same time taken away farmer's incentive for crop

diversification. What's more, the level of procurement is almost

completely independent of demand. resulting in excessive stockpiling

saddling the government with high warehousing costs.

Heavy subsidies on inputs like fertilizers, water and power eat up funds

that could otherwise be invested in irrigation systems and rural roads.

The results is that only around 40% of India's gross cropped area I

irrigated. This proportion will have to be increased if the growing

population's need for food is to be met.

Limited irrigation, coupled with a subsidy- induced overuse of fertilisers

has adversely affected the agriculture sector's productivity. Differences

in agricultural yields in India and China validate this view.

Tardy agri growth :

Agriculture, which was the Indian economy's mainstay for decades, has of

late been superseded by the fast growing services and industry sectors.

Agriculture's share in the country's GDP has declined from 45% in the 1970s

to the current 23%. The services and manufacturing sectors have been

nurtured with concerted policy measures to promote their growth. But the

agriculture sector has been neglected, except for indiscriminate subsidy

doles to farmers.

India, which accounts for over 16% of the world's populations, has

only2.4% of its land mass and less than4% water resources. This

245

underscores the crucial significance of water in sustaining and growing

agricultural production.

Water scarcity :

The agree sector's demand for water is set to grow rapidly, on

account of the growing need for food, horticultural products, and raw

material for various industries. But the share of water allotted to the agree

sector in likely to fall because of increasing demand from other sectors.

Water demand pattern in India (cubic km)

Table No.6.3

Water demand pattern in India (cubic km)

Area 1985 2000 2025E

For Agriculture 470 630 770

For non- agriculture use 70 120 280

Source: Task force report, SSKI Research

They expect the share of water for agriculture to fall from the current

84% to 69% by 2025. The sector's demand for water. on the other hand, is

projected to increase from 470BCM in 1985 to 770BCM by 2025 . Over the

same period demand for nonagricultural use of water will multiply fourfold

from 70BCM to 280BCM.

This rapid growth in demand in the face of emerging supply

constraints is likely to lead to a shortage of water for irrigation. State wise

data on potential for irrigation also indicates that the availability of water has

been shrinking. Inappropriate polices that induce indiscriminate and

wasteful use of water, lack of appropriate technologies, and inadequate

institutional support systems have led to serious agro- ecological problems

in irrigated areas. The sustainability of Indian agriculture would be severely

246

tested. unless the present practices of water usage and management are

changed.

The international water management institute forecasts that by 2005

33% of India's population will live under absolute water scarcity condition.

This underscores the urged need for conservation of water and improvement

in water use efficiency (WUE).

India's agricultural WUE, at 35% is one of the loTheyst in the world.

compared with china's 55%. This demands radical changes in conservation

and agriculture policies to help save water fertilizer and energy MIS is the

key means to achieve these objectives, and this has been amply

demonstrated over the past 15 years. HoTheyver, the adoption of MIS has

not been as fast as it might have been on account of various issues detailed

in the chart below.

Issues hampering the development of micro irrigation :

what has hampered development of MIS

Lack of credit

poor institutional

support mechanism

Lack of skilled human

resources

technophobia of some

participants

High initial capex

deterrent for poor farmers

lack of information on use of soil

water fertilizers

247

WHAT HAS CHANGED : THE SECOND GREEN REVOLUTION

Some countries have already adopted micro irrigation techniques to use

their water more efficiently, and to improve productivity. Micro irrigation

systems enable direct and concentrated application of water to root zones of

crops, through specially designed emitters, and piping networks.

At present, only 1.2 mn hectares of farmland in India is covered

under micro- irrigation, out of a potential 39 mn hectares. The government

of India. Manful of the need to improve the efficiency of water management,

constituted the non- partisan task forces on Micro-irrigation under

Chandrababu Naidu ( ex- cm of AP). The task Forces mandate was asked to

suggest ways and means to enhance productivity, promote diversification

and drive sustainable growth in agriculture through the efficient vse of

water. The panel has recently submitted its findings and recommendations,

the salient ones being.

Promote micro- irrigation as a total plant support system, from planting

and post harvest management to marketing.

Duble production, mainly by enhancing yields and increasing cropping

intensity, water will be the most critical input to improve productivity.

Micro- irrigation saves water, fertilizer, and power and aids value

addition in agriculture.

Micro irrigation has vast potential coverage can be increased from the

current 1.3 mn hectares to 69 mn hectares by 2030.

Target 3 mn hectares over the Tentsh plan period 2004-05 to 2006-07

and another 14 mn hectares over the eleventh plan period 23007-08 to

2011-12.

Investment Rs. 105 bn during the Tenth plan and another Rs. 510 bn

during the eleventh plan.

Funding for the project to be front ended by availing the RIDe or similar

funds of NABARD, and share from state and central government.

Effectively no fiscal or operational risks to the project.

248

Advantages of Modern Irrigation Technologies :

More crop Drop: no. Lift without Drip Micro - irrigation enables

farmers to produce more crop with less water. The Task force has also

argued for equation investments in irrigation projects to infrastructure

support. It has recommended making micro irrigation compulsory in the

command areas of new irrigation projects, because drilling for water is most

productive when micro irrigation techniques are used. Projected investments

during the Tenth plan and the Eleventh Plan stand at rs. 615bn, to be shared

by the GOI, state governments and farmers. The governments share of this

requirement will be raised through Budget provisions. World Bank loans,

import cuss, and RIDF (under NABARD). the balance 50% share is to be

borne by the beneficiaries (farmers) for which they could seek institutional

financing.

In a related move, the GOI has proposed the creation of an Agri

infrastructure and Credit Fund (AICF) of Rs. 500 bn in the NABARD, in

place of RIDF fund. This fund will be used in the development of waste

land, irrigation, storage of agro products. cold chains etc. The task force has

recommended that micro irrigation be given priority consideration while

allocation funds out of the proposed AICF.

Drip irrigation : The root solution :

Drip irrigation involves high frequency application of water in and

around the root zones of plants. The system consists of a network of pipes

along with suitable emitting devices. DIS is based on the fundamental

concept of irrigating only the root zone irrigation. In of the crop rather than

the entire land surface as in surface irrigation methods.

Drip irrigation systems are known to be achieve high WUE, and also

improves crop yield. DIS allows frequent application of small quantities of

water, which ultimately provides a nearly constant soil water condition in

the major portion of the root zone. As the chart below shows, direct

application of water to the root zone in controlled quantities results in

uniform growth, higher crop yields, and improved quality of produce-

249

besides ensuring substantial savings in water required for irrigation. In drip

irrigation, the cyclical nature of the conventional irrigation methods can be

avoided and soil moisture levels can be maintained at optimum field

capacity levels continuously, whereby the conditions for plant growth are

ideal all along the duration of the crop.

Conventional and modern irrigation methods:

Performance

indicator

Conventional

Irrigation

Modern Irrigation

Water consumption Wastes a lot of water

Losses occur due to

percolation, run off

and evaporation

Potential saving of 50%

in water vis a vis

conventional systems,

Negligible losses due to

run-off and deep

percolation

water use efficiency

WUE

only 30-50% because

losses are very high

80-95%

Labour intensity Fairly high Much lower than

conventional systems,

as labour is required

only for operation and

periodic maintenance

weed infestation Very high Almost nil

Water control Inadequate Very precise and easy

Efficiency Of

Fertilizer Use

Very low, because of

leaching and run off

very high, because

there's little loss of

nutrients due to

leaching and run - off

Soil Erosion High Low

crop yield Low up to 40% higher than

conventional systems

The horticulture sector is emerging as a promising area for

diversification in agriculture on account of high income generation per unit

of area. water and other farm inputs. At present, horticulture is contributing

29.6% to the Agricultural share to GDP from 8.5% of land area. Given the

increased need for nutritional balance for the growing populace, horticulture

production is estimated to increase to 360 mn tones from the present level

of 152mn tonnes. Micro irrigation led agriculture will maximize the

250

synergistic interactions of improved seeds, water and fertilizer the three key

components of the Green Revolution.

Table No.6.4

Potential growth in horticulture crops

1991-92 1996-97 2000-01 2007-

08p

2010-

11p

2020-

21p

crop (mn)

(tonnes)

Prod Prod Prod Proj Dd Proj Dd Proj Dd

Fruit 28.63 40.46 45.37 75 81 98

Vegetables 58.56 75.1 93.92 160 185 220

Spices 1.9 2.8 3.02 5 5.5 6.5

Coconut 6.93 8.98 8.67 18 20 24

Cashew 0.3 0.43 0.45 1.5 1.7 2

Others 0.24 0.3 1.07 6 7.1 9.5

Total 96.56 128.0 152.5 265.5 300.3 360

Source: Ministry of Agriculture, SSKI Research

Key benefits of increasing usage of micro irrigation

While water saving is a necessary condition for the sustainable use

of irrigation water, it may not be a sufficient condition for sustainable

agricultural development. There is a need to increase the productivity of

Key benefitsof MIS

Higherincome

generation for farmers

conversion of vast rain fed areas

into irrigated lands

Easy irrigation

of difficult terrain

Improved Quality Uniform growth

Reduced Labour Cost, Higher Yields 30%improved

Quality UniformGrowth

Horticulture - Led

Diversiflication Of

Agriculture

savings :50% in water and

fertilizer, 25% in energy

consumption

251

crops while saving water. DMI accomplishes precisely this WUE is

significantly higher under DMI than under the flood method of irrigation

(FMI) as shown in the table below.

Table No.6.5

Water consumption much less under DMI than under FMI

Crop Water

consumption

(mm/ha)

Yield tonnes /

ha

Water

saving

over

FMI (%)

Yield

increase

over FMI

(%) FMI DMI FMI DMI

Vegetables

Ash gourd 840 740 10.8 12 12 11

Bottle gourd 840 740 38 55.8 12 47

Brinjal 900 420 28 32 53 14

Beetroot 857 177 4.5 4.9 79 9

Sweet Potato 631 252 4.2 5.9 60 40

Potato 200 200 23.5 34.4 0 46

Lady's finger 535 86 10 11.3 84 13

Onion 602 451 9.3 12.2 25 31

Radish 464 108 1 1.2 77 20

Tomato 498 107 6.1 8.9 79 46

Chilies 1097 417 4.2 6.1 62 45

Ridge Gourd 420 172 17.1 20 59 17

Cabbage 660 267 19.6 20 60 2

Cauliflower 389 255 8.3 11.6 34 40

Fruit Crops

Papaya 2285 734 13 23 68 77

Banana 1760 970 57.5 87.5 45 52

Grapes 532 278 26.4 32.5 48 23

Lemon 42 8 1.9 2.5 81 32

Watermelon 800 800 29.5 88.2 0 199

Sweet lemon 1660 640 100 150 61 50

Pomegranate 1440 785 55 109 45 98

Other crops

Sugarcane 2150 940 128 170 56 33

Cotton 856 302 2.6 3.2 65 23

Coconut 0 0 0 0 60 12

Groundnut 500 300 1.7 2.84 40 67

source: Task force, SSKI Research