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Jain Irrigation Systems Ltd.

BSE: 500219 Sector: Industrials
NSE: JISLJALEQS ISIN Code: INE175A01038
BSE 00:00 | 06 Feb 29.15 0.15
(0.52%)
OPEN

29.00

HIGH

29.50

LOW

28.95

NSE 00:00 | 06 Feb 29.15 0.15
(0.52%)
OPEN

29.05

HIGH

29.60

LOW

28.90

OPEN 29.00
PREVIOUS CLOSE 29.00
VOLUME 271379
52-Week high 48.25
52-Week low 28.25
P/E 58.30
Mkt Cap.(Rs cr) 1,797
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 29.00
CLOSE 29.00
VOLUME 271379
52-Week high 48.25
52-Week low 28.25
P/E 58.30
Mkt Cap.(Rs cr) 1,797
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Jain Irrigation Systems Ltd. (JISLJALEQS) - Chairman Speech

Company chairman speech

In Conversation with Managing Director & CEO Anil Jain

Q: Was the management delighted with the performance of the Companyduring the last financial year?

The world has been volatile and the entire ecosystem had witnessedtough times due to the pandemic in the last couple of years. At Jain Irrigation thefinancial year 2021-22 has been quite decisive and transformational. Given the challengesthe company encountered in terms of inflationary headwinds of polymers supply chaindisruptions globally increase raw materials and logistics costs the company ended thefiscal year on a positive note. The performance can be attributed to two things;- a)Increasing Operating Leverage b) Optimising our costs. The Company registered an all-roundgrowth —the consolidated revenue has

increased by 25.6% YoY and EBITDA increased by almost 100% incomparison to FY 2020-21

Q: What were some of the positive developments at the Company duringthe year under review?

• Implementation of Debt Resolution plan

• Merger of International Irrigation Business with Rivulis (Dated22nd June 2022)

• Coffee Tissue Culture plant

• Addition of SKUs in Agro-Food basket

• Introduction of new business model in India

• Exemplary performance of International Irrigation business

• Substantial improvement in food processing business

Q: Over the last few years the company faced difficulties in debtrepayments Can you elaborate more on how this has changed?

During the last few years credit management became our focus area. TheCompany had failed to comply with its debt obligations in 2019 that was induced byextended working capital cycles due to delay in receipts from governments. Longreceivable cycles affected our cash flow which increased our interest cost and impactedour margins. In view to retain normalcy to all our loan facilities Debt Resolution Plan(RP) was implemented in March 2022 by the lenders. The implementation of RP was aculmination of sustained hard work of all stake holders involved. With the RP in placethe company gets access to additional Working Capital facility of Rs. 300 croressignificantly reduced interest costs and improved fund flows for managing business ^operations efficiently. In our pursuit to deft leverage our balance sheet we haverecently ft announced the merger of our international ft irrigation business with Rivulis.The deal upon ft closing is expected to reduce will enable 45% ft of debt off ourconsolidated books.

ft Q: How does the company intends to ft strengthen its business?

ft Our emphasis is quite simple to focus on ft development of ourexisting portfolio driven by product innovation relevance building and brand enhancement.As ft market leaders in Hi-tech Agri Inputs and Water Management Systems we believe thereis a significant non- H linear growth potential that can be

sustained for long period of time. The demand from the core business ofMicro Irrigation Systems and Plastic Pipes coupled with initiatives taken by theGovernment would stand us in good stead in gaining further market share. The overseascompanies are also seeing a good traction and the abatement of covid holds a good promisefor a steady performance. Our exports from India stood at Rs. 3874 million (Hi-Tech Agri& Plastics) for FY2022. This indeed provides us with an amazing opportunity to expandour product basket to other countries and build long-term value.

Q: What are you doing to make JISL a sustainable company?

The IPCC Report on Climate Change highlights that the Earth's climateis changing across every region and global warming will reach critical tolerancethresholds for agriculture. Existing sustainability in our approach will provide usleadership to combat these challenges. This underscores the importance of our Agriproducts and services in years and decades to come. "Water is Life" and oursolutions allow most efficient use of water to create best nutrition for all andcontinuous improved incomes for millions of farmers around the world. We have mitigatedthe environmental impact of our manufacturing operations by reducing emissions (Totalgreen energy used is ~9417 MWh). We have become a Zero-net liquid discharge Company.

Q: How else does the company plan to expand its operations?

The Company intends to cater to entire the global ecosystem that willredefine quality and green living while creating extensive shared value. Our focus is nowto leverage a more global approach to product innovation and brand equity for all oursegments. Over the next few years the Company will focus on technology to manufacturesustainable products enabling farmers not only water savings but also doubling farmincome. We aim to become more responsive and leaner enabling increased cost efficienciesthat generates the fuel needed for growth. To further diversify our product offering wehave recently commenced our Spices division with our 'Valley Spice' brand. The demand fordehydrated vegetables globally is exponential. This division shall embark several growthopportunities in the overseas market.

Q: What is the message you would like to leave for all stakeholders?

We have advanced significantly in terms of process enhancementstechnology adoption quality control and developing of new products. These developmentswill enable us to grow our volume and revenues in FY 2022-23 onwards. To meet the changingneeds of consumers we will keep creating new products while upholding regulatorystandards and guaranteeing the highest levels of quality. On the operational front theCompany has identified business segments that provide strong growth potential and arecompatible with available production capacities. To cater to demand from domestic andoverseas markets the Company has a strong order book in place of Rs. 36000 million.Theme for our annual report this year is to show case our consistent efforts and pathbreaking solutions through Innovation and Research & Development. We see this as a keyto not only to sustain business in long term but also create enormous shareholder value. Iwill look forward to contributing in the Company's upcoming growth phase and assist theteam towards building a long-term sustainable business

Anil Bhavarlal Jain

Vice Chairman & Managing Director

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