Company is one of the pioneer names in the plastic irrigation products industry sector in India. Company is in Technical alliance with many firms for the purpose to make their products to the international

Quality Standards. Company’s Rs.1000 million exports coming from the toughest markets in the world. It’s largest producer of PVC Pipes in India. Company is Pioneers of Micro Irrigation Systems in India

besides pioneering the concept for small landholders in India. It’s the only manufacturer producing the widest range of Plastic Sheets (PC & PVC) under one roof. Company has got the ISO-9001 from

RWTUV, Germany for the PVC Pipes and Fittings, Polytube, Emitting Pipe, Plastic Sheets, Onion Dehydration Divisions & Fruit Processing. Company is having solutions for Small Farmer, Urban

Household, Urban Housing, Community Development, Mining Industry, plant tissue culture, Chemical industry, Sugar factories, Oil & Gas exploration, Optic Fiber ducting, Advertisement & Signage's,

Landscaping, Green houses, water shed development, Waste Land Development, Farm production & management, solar water heaters for Households & Corporate.

Products & Services—

Products range of Jain Irrigation includes Micro Irrigation Systems & Components, PVC & PE (HDPE, MDPE, LDPE, LLDPE, ABS, PC, etc.) Piping Systems, Moulded & Extruded Plastic Products, Plastic

Sheets, Dehydrated Onions and Vegetables, Processed Fruits, Tissue Culture Plants, Green Houses, Liquid/ Water Soluble Fertilizers, Bio-pesticides, Bio-fertilizers and Solar Water Heating Systems.

Company is having India's only one-stop high-tech integrated agricultural shop. Company has collaboration with Technical partners of USA for solar water heating systems and other products. It is involved

into Turnkey Project Services, Roof Cooling Systems, Agriculture, engineering & consultancy

Company looking towards a huge potential in setting up irrigation projects abroad and is looking at opportunities in the African continent. It is currently in talks with some African country form a joint venture to

bid for some large integrated micro-irrigation project. Company is expanding its capacity in plasticulture and food business. In plasticulture, the company plans to increase capacity to 2, 04,000 ton. In food

business it plans to increase capacity to 71,200 ton.

The Food division of the company’s is the largest processor of fruits and vegetables in India with factories in India and the USA. The core strength of the division is the focus on quality, which has been

attested by various certifications. The division also received certifications for environment, health and safety. Jain’s fruit processing plants are located at Jalgaon in Maharashtra and at Chittor in Andhra

Pradesh. The demand for processed fruits and vegetables is growing in India as well as overseas markets and this has translated into the division growing at more than 35% compounded basis over the last

five years. Mango is the largest revenue earner for the product portfolio. Company is also working very closely with farmers in Maharashtra, Gujarat, Karnataka and Andhra Pradesh on increasing mango

yields.

Recent Developments—

Jain Irrigation Systems has bagged an order worth Rs 1,580 million from various Coca-Cola bottlers in India and overseas for supply of mango pulp for the 2009-2010 seasons. This product will be produced

in the current mango season but dispatched over next year or so.

In February, Jain Irrigation System (JISL) signed a memorandum of understanding (MoU) with the International Rice Research Institute (IRRI). Jain Irrigation will closely work with IRRI’s scientists to

determine optimal irrigation and fertigation system for irrigated rice and wheat. Under this MoU, JISL and IRRI will study the relevance of different irrigation and fertilizer delivery systems for paddy cultivation

in India and other south Asian countries wherever IRRI is planning research or adaptive trials. The aim is to find ways to reduce water consumption in rice cultivation while increasing crop productivity.

Description                                                                             Amount(Rs. in lakhs)
                   
Net Sales/Income from Operations                                        63087.00
Other Operating Income                                                        1016.00
Increase/Decrease in Stock in trade and work in progress    3624.00
Consumption of Raw Materials                                               34688.00
Employees Cost                                                                      2751.00
Depreciation                                                                           1682.00
Other Expenditure                                                                  8685.00
Total Expenditure                                                                   51430.00
Profit before Other Income, Interest & Exceptional Items     12673.00
Other Income                                                                         -6.00
Profit before Interest & Exceptional Items                            12667.00
Interest                                                                                 4512.00
Profit from Ordinary Activities before tax                               8155.00
Tax Expense                                                                          2419.00
Net Profit for the period                                                         5736.00
Face Value (in Rs.)                                                                 10.00
Paid-up Equity Share Capital                                                 7551.00
Basic EPS before Extraordinary items (in Rs.)                        7.60
Diluted EPS before Extraordinary items (in Rs.)                     7.57
Net profit Margin %                                                               8.95%
Operating profit Margin %                                                     22.38%
Public Shareholding (%)                                                        68.95

Valuation—

At CMP, stock is trading at 16.4 P/E multiple of its FY2011 estimated EPS. We recommend investors to “BUY” “Jain irrigation systems ltd.” for medium to long-term investment prospects.