Skipper Ltd is looking at over 50 per cent stake in the proposed joint venture with Israel's MetzerPlas Cooperative Agricultural Organisation for foray into the drip irrigation sector.
The board of directors of Kolkata-based Skipper have given in-principal approval to form the joint venture with MetzerPlas.
"We are negotiating, as details of the joint venture are being discussed with MetzerPlas. But, we will retain at least 50 per cent or more stake in the JV," Devesh Bansal, director, Skipper, told PTI.
MetzerPlas, one of the top five drip irrigation companies of Israel, is bullish on India, Bansal said. It already operates in several countries through the joint venture model.
He said at least two states in south India, including Telangana, were being evaluated for site selection.
The project will boost Skipper's existing PVC pipes business, as the proposed company will source about 30 per cent input materials.
The PVC vertical generates nearly 15 per cent of its revenue, while the rest comes from power transmission and distribution operations.
The domestic industry size of drip irrigation is estimated at over Rs 5,000 crore, and the company expects this sector to grow at a robust pace in the next few years.