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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
211
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.
212
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
213
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.
214
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
215
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
216
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.
217
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.
218
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
219
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.
220
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.
221
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.
222
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
223
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.
224
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.
225
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.
226
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
227
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,
228
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.
229
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:
230
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:
231
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:
232
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
233
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