News @ Jains - Jain Irrigation Plans Investment In A Start-Up U.S. Company

Jain Irrigation has decided to acquire 51% controlling interest for US$ 3Mn. in a US Company working in the custom home building market. Exact structure of investment will be determined by end February. The investment would be made in phases over the calendar year 2006.

NuCedar Mills Inc. Will address emerging building industry demand for products made from PVC Sheets. The venture intends to get a definitive patent ruling issued for its newly developed architectural millwork process.

A new or remodeled home market in the US requires $ 3 Bn. worth of trim board products. Part of this market is already being supplied by PVC Sheet division of Jain Irrigation. The new product means additional business for each home being built or re-modeled in the US. Last year, US issued permits for 2Mn. New homes. This alone provides for a $ 12 Bn target market for new application. For FY 2005-06, export from PVC Sheet Division is growing by 40% and will cross sales of US$ 40 Mn.

Mr.Jain, Managing Director of Jain Irrigation said after signing the deal, Nu-Cedar’s products not only provide added demand for our PVC Sheet products, but also an exciting opportunity to further tap into the strong US building products industry”.

He added further that this niche premium product is environment friendly as it will substitute lumber products and will provide respite from deforestation.