Mumbai: Jain Irrigation Systems will merge its international business with drainspart of a Singapore-based investment fund TemasekTo make it the world’s second largest irrigation player with revenues of $750 million (Rs 5,860 crore).
Jain will hold 22% in the merged entity, while Temasek will hold the remaining 78%. the proposed deal will be reduced Jain’s debtWhich was Rs 6,000 crore in FY22.
Jain said, once the transaction is closed, the company’s debt will come down by 45% or about Rs 2,700 crore and the interest cost will also come down. In addition, the merger will help the company refocus its efforts to grow its India business.
Rivulis also has a presence in India but the local entity is not part of the transaction. In India, both Zain and Rivulis will be competing with each other. The board of the merged entity will consist of directors and an observer representative of the Indian company, which will have dual headquarters in Singapore and Israel and will continue to be named Rivulis. However, the merged entity will continue to use the Jain brand in international markets where it has a significant presence and value.
Jain’s International Irrigation Business It is worth Rs 4,200 crore, its MD Anil Jain said. Anil’s father Bhavarlal established an irrigation company in 1986 in Jalgaon, Maharashtra. Jain got into financial trouble in recent years due to high debt and delay in getting receipt from the government. Anil said the company has changed its business model by selling directly through dealers, among other steps.
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