Jalgaon-based Jain Irrigation Systems expects its micro irrigation systems (MIS) to grow by 40-50% and food processing vertical by 30-40% this fiscal despite deficient rains, MD Anil Jain said.
“The farmers we supply to basically depend on irrigated farming meaning they have already stored water for this year,” he said at a conference call with analysts after the announcement of Q1 results.
Jain said that 85-90% of the company’s business comes from the western and the southern regions of the country which have received better rainfall than other parts.
According to the Indian Meteorological Department data, total rainfall since the beginning of June has been 19% below average and south-west monsoon rains were 18% below normal in the week ended July 29.
MIS segment of the company, which include drip and sprinkler irrigation, grew 54% in 2008-09 and 36% in Q1 this fiscal. Domestic food processing, on the other hand, grew at 80% during the last quarter, but exports dropped 35%.
On availability of mangoes and onions for food processing, Jain said the firm has already sourced all the fruits and vegetables required for the fiscal. Asked if the firm would enter the retail space for products like tomato puree, Jain said, “We will soon start a pilot project and look at entering the market next year.” The firm is into solar water heating systems, plastic products and poly vinyl chloride (PVC) sheets.
Jain Irrigation’s order-book currently stands at around Rs 1,000 crore, of which MIS constitute 55% and food processing 35%. Jain said the order-book could increase 30-40% by March next.
Jain Irrigation’s topline grew 21% to Rs 576 crore and bottomline 88% to 55.6 crore in the first quarter compared with the corresponding period last fiscal.
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