M&M to pick up 38% stake in EPC

Mahindra & Mahindra (M&M) has agreed to acquire 38 per cent equity stake in Nashik-based micro irrigation company- EPC Industries Ltd (EPC) through preferential issuance of equity shares for Rs 43.35 crore. This transaction will enable M&M to enter micro irrigation sector.

“EPC Industries will make a fresh issue of 65.58 lakh equity shares at Rs 66.10 per share to M&M in this transaction. The capital infusion will be utilised to fund working capital, capacity expansion and implementations of new generation drip irrigation technology,” the senior official from EPC Industries told Business Standard. EPC Industries has its state-of-the art facility in Nashik, where it manufactures Micro Irrigation Systems such as Drip and Sprinkler Irrigation Systems and parts thereof. The company provides total solution for agriculture with major focus on micro-irrigation. The company also manufactures PE pipes for industrial and infrastructure purposes such as gas and water distribution.

In FY 2009-10, EPC Industries registered a sales turn over of Rs 75.21 crore, against Rs 62.31 crore in FY 2008-09. “The increasing focus by central and state governments on water conservation has resulted in a very strong demand for Micro Irrigation Systems in the country. The company’s products can reduce water consumption by upto 50 per cent while improving farm yields,” he added.