News @ Jains - Jain Irrigation Announces Acquisition of Chapin Watermatics Inc., USA

Jain Irrigation Systems Ltd. has announced the acquisition of Chapin Watermatics, Inc, New York, USA through its second generation wholly owned subsidiary, Jain (Americas) Inc, Ohio, USA. Jain Irrigation has acquired 100% shareholding control of Chapin Watermatics at approx. $ 6 million in cash and debt with deferred payment terms for part consideration. Company will use FCCB funds for the acquisition.

Chapin Watermatics Inc, USA is a pioneer and leading manufacturer of drip tape and is known as complete source for field crop, nursery and green house drip irrigation systems. Chapin was created by its inventor Mr. Richard D. Chapin who has been credited with several patents in this field. Chapin has also successfully pioneered and initiated design and development of gravity based drip kits intended to help the below poverty line families in the developing countries to feed them. Chapin is currently selling its products in North and South America, Europe, other Middle Eastern and African Countries. Company has averaged over $9 million turnover for past several years. It has a production capacity to take sales up to $15 million.

Jain Irrigation is the only company in the world that produces under one roof complete drip irrigation system including PVC & PE pipes, PVC & PE fittings, Polytubes, Emitting pipes and fittings, emitters, spray heads and jets, filtration and fertigation equipment, and green houses. It also undertakes projects on turnkey basis for transformation of wasteland through watershed planning and development. Its multi- product and diversified skill profile enables it bid for global agricultural projects getting underway in developing countries.

Marketing subsidiaries of Jain Irrigation in USA, Europe and Africa and their warehousing facilities will provide additional marketing and logistic support to Chapin Watermatics.

The acquisition will significantly enhance Jain Irrigation’s ability to participate in turnkey projects in developing world markets while providing a strategic brand fit in matured markets of USA and Europe. Another important outcome will be Jain Irrigation’s ability to be the only company in the world making complete product range suitable for all types of crops in various geographies for small as well as large farm holdings across the world. Irrigation markets worldwide are witnessing huge growth due to ever growing problem of water scarcity.

Mr. Anil Jain, Managing Director of Jain Irrigation, said after signing the deal in USA, "The focused marketing efforts that Jain brings to the deal will complement the excellent products of Chapin and the acquisition will catapult Jain Irrigation and Chapin Watermatics to the forefront in growing global markets for Irrigation equipments".

Jain Irrigation Systems Ltd. is a diversified company with more than 3000 employees and sales in excess of $ 200 million with product portfolio encompassing Irrigation Products, Piping Systems, Plastic Sheets, Dehydrated foods, Fruit Purees, Pulp and Juices and Solar Energy based Thermal and Photovoltaic Systems in India and other world markets.