Netafim India to be export hub for Asia, Australia markets

The $330-million Israeli drip irrigation major, Netafim, has announced that its Indian subsidiary would soon become the regional hub for exports to Asia and Australia for drip irrigation pipes.

Netafim India, a 100 per cent subsidiary of Netafim ACS, Israel, is also expanding capacity at its plant in Vadodara in Gujarat to cater to the increased demand.

Netafim ACS is the largest player in the global drip irrigation market and basically is a farmer controlled organisation, similar to a co-operative.

Zvi Feler, managing director of Netafim India told Business Standard that the company was expanding capacity at its Savli plant in Vadodara from 10 crore metres per year to 15 crore metres per year.

"We have invested about Rs 1.6 crore at our plant in Vadodara and imported extruders which produce the pipes. The products will be exported to Asian countries and Australia and we will also be stepping in to meet demand in the US and European markets occasionally," Feler said.

With a sales force of more than 150 professionals and over 65 dealers across the country, Netafim India has a market share of around 15 per cent in the Indian drip irrigation industry estimated to be around Rs 350 crore per year.

Netafim in India also provides agronomical support to all its customers to improve the quality and quantity of various corps. Netafim India has a dedicated agronomical and design staff across the country to carry out this activity, he said. Netafim is also slated to introduce five more products this year into the Indian market.

The company according to Feler was planning to introduce drip irrigation products specifically for greenhouses, nurseries and special crops like herbs. In India, it already has over 1,000 products in its bouquet of offerings. Globally, the company has over 14,000 products to offer.

The company which is credited as the inventor of the drip irrigation technology, is also mulling the setting up of a manufacturing plant in Andhra Pradesh.

The company may make an investment of close to Rs 12 crore in setting up a six crore metre per year plant.

Netafim is executing a Rs 1.5 crore project from the AP Micro Irrigation Project (APMIP), which is part of the Rs 1250 crore project that APMIP has taken up all over the state.

The usage of drip irrigation systems in the APMIP programme is expected to save close to 1.5 crore cubic metres of water at the rate of 37,500 litres per 4,00,000 hectares.