Jain Irrigation Systems Returns Profit in India

Jain Revenue Risesin India as Irrigation Sales Increase

Jain Irrigation Systems Ltd. (JI), Asia's top irrigation-equipment maker, returned to profit in the first quarter, helped by growth in its micro-irrigation business and improved sales in water-challenged India.

Jain, whose drip and sprinkler systems allow farmers to irrigate more land more efficiently with less water, said today in a statement that sales in the quarter ended June rose 2.5 percent to 9.9 billion rupees ($161.8 million) from a year ago. Net income was 161.2 million rupees compared with a 465.1 million-rupee loss in the year-earlier period. That trailed five analysts' median estimates for a 560 million-rupee profit.

The company, based in Jalgaon, is India's largest irrigation equipment maker. Revenue was aided by a 31 percent increase in its domestic micro irrigation business including a 975 million-rupee project order from Himachal state as well as "strong traction" in overseas revenue, it said.

AboutJain Irrigation Systems:

Jain Irrigation Systems was founded in the 1960s, when Bhavaralal Jain used 7,000 rupeesfrom family savings to begin trading auto vehicles and accessories. In 1963 the company made1 million rupees in sales, and by 1978 sales grew to 110 million rupees.As sales grew, Jain was exploring other products. Company executives noted a need for
irrigation, which would help farmers boost crop yield. To supply this market, the companyexpanded its business beyond vehicles to include agriculture products, and in 1980 Jain beganmanufacturing irrigation pipes.

The company upgraded its production facilities and invested in research and development tocontinuously improve existing products and introduce new ones. It also improved its distributionnetwork in rural areas, making it easier to sell pipe and associated products, such as casings.

Source: Bloomberg

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