Jain Irrigation Systems has acquired 69.7% in Switzerland-based Thomas Machines for an undisclosed amount.
Picks up 69.7% in Thomas Machines for undisclosed sum
MUMBAI: Jain Irrigation Systems has acquired 69.7% in Switzerland-based Thomas Machines for an undisclosed amount.
The company, which is into micro irrigation systems, food processing and plastic pipes and sheets, will retain full management and operational control in Thomas Machines. It will buy out the remaining 30.25% in the next three years.
Anil Jain, managing director of Jain Irrigation, told DNA Money: “The buyout is a strategic investment for us and it will further help us consolidate the leadership position in the industry. The rest 30% stake would be bought over the next three years.”
He said Thomas Machines’ research and development division is strong and its software-related R&D will be brought to India.
Thomas Machines is a manufacturer of specialist machines and equipment, including drip irrigation lines, quality control and test equipment, automation equipment laser machine centers and laser products; it has been a supplier to Jain Irrigation for over three years.
Meanwhile, Jain Irrigation is focusing on water management segment in a big way. It is expanding its facilities and enhancing activities in this segment.
“There is no doubt that water management space will see a tremendous growth in next few years and Jain Irrigation will be one of the main player in that space too. We have drawn up a conceptual strategy and plans for water management, which will be discussed further and implemented in the coming quarters,” Jain said.
Jain Irrigation and Israel’s national water company, Mekorot, signed an MoU to work together in projects related to water infrastructure in the country last month.
It has plans to set up a facility in north India by the end of current fiscal with an investment of Rs 30 crore. The location is yet to be decided but the likely location could be either in Punjab, Haryana or Uttarakhand.
The company has plans to increase its turnover to around Rs 2,500 crore in the current fiscal from the current Rs 1,500 crore.
Jain Irrigation has earmarked a $100 million capital expenditure in two years to fuel organic growth and expand capacities in its drip irrigation, pipes and food and fruits processing businesses.
The funds will be raised partly through internal accruals and debt if necessary but it has no plans to tap the market.
It has recently raised $15 million debt from a consortium led by International Finance Corp and Lehman Brothers and hopes to take another $60 million from the same consortium. The balance will come from founders’ equity and internal accruals.
r_mithun@dnaindia.net
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