The Indian irrigation and sustainable agriculture giant, Jain Irrigation announced today that it has signed an agreement with Kibbutz Naan, to acquire the remaining 50% of the Israel based irrigation solutions Company NaanDanJain, which till now has been equally owned by Jain and Kibbutz Naan. This acquisition realises the call option that Jain Irrigation has held since acquiring the first 50% in 2007.
Since signing the first agreement in 2007, NaanDanJain has increased its sales turnover more than 25%. In the past 5 years, more than NIS 125 million (Rs 1250 mn) have been invested in the Company in innovative drip irrigation and sprinklers equipment both in Israel and in NaanDanJain subsidiaries worldwide. Investments in research and development have also increased.
The cooperation between Jain and NaanDanJain opened new markets for the Company, and both companies together offer the widest range of products and services in the world - thus realizing the One Stop Shop concept. Jain introduced state-of-the-art technology in NaanDanJain in drip lines-tapes and NaanDanJain offered world’s best sprinklers and dripper products to Jain.
Jain has pioneered a unique business model which focuses on creating value for its farmer customers and is a global leader in efficient irrigation markets. It operates in the entire
agri-value chain, thus enhancing its appeal to farmers around the world. It serves millions of farmers around the world, and is the first true multinational Company from an emerging market to become a leader in developed markets.
This historic transaction heralds the strengthening of ties between India and Israel, and marks 20 years of establishment of diplomatic relations between the two countries. Jain was the first Company to enter into a business partnership in Israel in such a unique and successful manner.
Mr. Anil B. Jain, Managing Director of Jain Irrigation and Chairman of NaanDanJain said, "This is a significant step in the strengthening of ties between Israel and India. This is an immense opportunity to expand our activity in the world in areas that provide solutions to the growing global climate change, water, food and energy crises. Jain's response to this challenge in the fields of agriculture and irrigation will be expressed upon the conclusion of the agreement, and we foresee new possibilities for growth of our Company in these areas. NaanDanJain provides much added value to Jain, and we are proud and excited with this opportunity to preserve and develop it for the benefit of our clients around the world. Together, we expect to become the world's leading agro-industrial concern."
The Secretary of Kibbutz Naan, Yoni Shilo, added: "The cooperation between the Israeli kibbutz and the Indian family was outstanding for both sides, both business-wise and socially. Kibbutz Naan believes in Jain's capacity to lead NaanDanJain to new heights, in Israel, and worldwide."
NaanDanJain's CEO, Avner Hermoni, stated: "Jain's large investment is an expression of faith in NaanDanJain. The agreement will ensure the expansion of NaanDanJain in the coming years."