"The potential of India's irrigation market is 500 billion dunam (125 billion acres) of land for irrigation," said Jain Irrigation Systems Ltd. joint managing director Ajit Jain. "Of this land, 30-35 million dunam (7.5-8.75 million acres) has been covered with advanced drip irrigation systems in the past 20 years; i.e. only 6-7% of the potential. This means that India's irrigation has huge long-term growth potential, amounting to billions of dollars."
Jain made the comment at the Agritech Israel 2009 Exhibition in Tel Aviv last week. The exhibition is expected to lead to contracts, or at least initial discussions of deals, similar to Jain's collaboration with Naan Dan, owned by Kibbutz Naan and Kibbutz Dan, which resulted in the creation of NaanDan Jain Irrigation Ltd.
The merger boosted sales in India alone fivefold to more than $10 million, and global sales by 15%.
"Globes": Why did you merge with NaanDan?
Jain: "As part of our strategy to become a global leader, Jain sought a certain products portfolio and cultural affinity. We found both these things at NaanDan. NaanDan's synergetic irrigation technology products portfolio, including drip irrigation, was one of the key strengths we were looking for when we considered collaboration. In addition, Jain and Kibbutz Naan have a similar philosophy: all the employees at our company are treated as extended family, and are called 'partners', which is similar to the socialist relationship of the kibbutz to its members."
What are Indian companies looking for in Israel?
"The Indian market looks to Israel because of the technology with business potential, and technologies can that help the Indian nation and its economy. In our case, we're naturally talking about irrigation and water technologies, where Israel is a leader."
When looking at India's rapid development and its huge size, it is obvious to everyone that there are immense business opportunities for Israeli entrepreneurs in many fields, not just water and agriculture. However, India is also not a Western country, which raises questions about the obstacles facing Israeli water companies seeking to do business in India.
"There are no bureaucratic or regulatory obstacles facing Israeli entrepreneurs who come to do business in India," says Jain's Israeli representative Amnon Offen, who is also its consultant on Indian agriculture. "In order to obtain Indian government subsidies for irrigation, Israeli companies must manufacture in India, that's all. Obviously, you also have to understand India's culture and the special features of its agriculture."
One of NaanDan Jain's main competitors in the drip irrigation market is Netafim Ltd.
Published by Globes [online], Israel business news - www.globes-online.com - on May 14, 2009
© Copyright of Globes Publisher Itonut (1983) Ltd. 2009