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| Jain Irrigation |
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| Summary of Proposed Investment |
| This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. |
| Project number | 24485 |
| Company name | Jain Irrigation Systems Ltd |
| Country | India |
| Sector | Agriculture and Forestry |
| Environmental category | B |
| Department | Agribusiness |
| Status | Active |
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| Date SPI disclosed | August 10, 2007 |
| Projected board date | September 10, 2007 |
| Previous Events | Invested: December 28, 2007
Signed: November 5, 2007
Approved: October 26, 2007 |
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| View Environmental & Social Review Summary (ESRS), click here |
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| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
| Jain Irrigation Systems Ltd. (JISL or the company) is India’s largest provider of micro-irrigation systems (MIS). In addition to MIS, the company is also a leading producer of plastic sheets and pipes, and processed fruits and vegetables. Its headquarters are located in Jalgaon in the western Indian state of Maharashtra. IFC is considering providing a corporate loan to JISL to finance its capital expenditures program. |
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| Project sponsor and major shareholders of project company |
| JISL is a listed company, whose stock has been listed on the Bombay stock exchange since 1989. The sponsor, the Jain family from Jalgaon, currently owns about 31% of the company’s shares as of June 15, 2007. The Jain family has been involved in agriculture and plastics businesses since 1960s. |
| Total project cost and amount and nature of IFC's investment |
| Planned capital expenditure is estimated to be at $77.50 million & overseas acquisition refinancing of $15.00 million. The proposed IFC investment is a loan of up to $30 million. |
| Location of project and description of site |
| JISL operates over 10 production facilities for MIS, plastic pipes, plastic sheets, dehydrated vegetables and processed fruits in Maharashtra, Andhra Pradesh, Tamil Nadu, and Gujarat of India and has also invested in companies overseas, such as the United States and Israel. |
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| Anticipated development impact of the project |
| The proposed capital expenditure is expected to increase in agricultural productivity from the adoption of high-tech micro irrigation systems, which will reduce water and input (fertilizers, others) usage by the agricultural sector in India and assist global drive for green cover for conserving natural resources (water, wood, forestry, etc.) and protecting environment. It will promote world-class processed fruit and vegetable production in India. It will also provide revenues to the government from increased corporate taxes & duties, increase in stability and level of farmer income, create new employment within the company as well as indirect employment opportunity through sustained agriculture & allied services, which will assist rural development, rural wealth formation and prevent migration & pressure on urbanization. |
| IFC's expected development contribution |
IFC’s role includes:
- financing the growth of a leading local MIS company which promotes the use of more efficient and water-saving agricultural practices in India;
- reinforcing the company’s commitment to agricultural development as well as rigorous environmental and social standards;
- supporting the company’s expansion into overseas markets including Africa and Middle East; and
- providing long-term loans not easily available in the local market. |
| Environmental and social issues - Category B |
This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects because a limited number of specific environmental and social impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The review of the project consisted of appraising technical, environmental, health, safety and social information submitted by the company, meeting with the management of the company, and visiting the project sites. The impacts and the mitigation plans have been discussed in the Environmental and Social Review Summary, which has been disclosed locally at the following location:
Jain Field, National Highway No. 6,
At post- Bambhori
Taluk- Dharangaon, District-Jalgaon
Maharashtra 425001
India |
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| For inquiries about the project, contact: |
Mr. Manoj Lodha, President Finance & Banking
Jain Irrigation Systems Ltd.
Jain House, 41/43, Police Court Lane, Fort
Mumbai – 400 001 India
Telephone: +91 22 22610011
Fax: +91 22 22621177 |
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| For inquiries and comments about IFC, contact: |
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster |
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