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News @ Jains - Jain Irrigation acquires a Strategic stake in Terra Agro

Jain Irrigation Systems Limited (JISL) of Jalgaon has today announced that it has acquired a significant strategic stake in Terra Agro Technologies Ltd. (“TERRA”) of Coimbatore. This investment will culminate in the merger of Terra with JISL in the next 6-9 months subject to compliances and requisite approvals.

Terra is an unlisted and closely held Company promoted by Mr. Vijay Mohan & family, who are also Promoters of Pricol Group. Terra is engaged in the business of growing and processing of vegetables and also have a manufacturing plant situated at Udmalpet Taluk in Coimbatore. Plant has an installed capacity of 1600 tonnes per annum for vegetable dehydration. The Company has approximately 1250 acres of land under its control. It also has completely computer-controlled Green Houses spanning an area of over two acres for production of vegetables and other controlled agricultural produce. Terra possesses installed drip irrigation systems for about 700 acres. It has also built reservoirs with well-laid piping network for irrigating the entire area. All its assets are free and unencumbered.

Vijay Mohan, Chairman & MD, Pricol Ltd. said, “This successful divestment will help PRICOL focus on its core businesses of light engineering and auto component manufacturing.”

Anil Jain, Managing Director, JISL said, “This acquisition has multiple benefits for the Company. It will add new product line viz vegetable & nutraceutical processing and dehydration to our food processing division. It will also allow us to increase our banana tissue culture market penetration in Tamil Nadu and Kerala as well as some of the adjoining districts of Karnataka and Andhra Pradesh. Tamil Nadu has second largest banana production in the country. The region has two monsoon seasons and promises lot of complimentary and synergic conditions for growing many agricultural products which are export worthy. It will also strengthen and broad-base Company’s research and development activities. Most importantly, it will give us wider and deeper foothold in the markets in Southern India to promote our core business of Drip Irrigation and PVC & PE Pipes. The proposition provides immense asset value and excellent strategic add-on for Jain Irrigation.”

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