Netafim India gets approval for Vadodara facility expansion

The Vadodara-based Netafim Irrigation India Pvt Ltd is all set for capacity expansion at its facility in Vadodara.

Recognising the huge potential of the Indian drip irrigation market, the board of Netafim Israel on Wednesday approved the expansion plans of Netafim India.

"Netafim Irrigation India, a company shortlisted for implementation of the Andhra Pradesh Micro Irrigation Project and the Maharashtra State Micro Irrigation Project among other projects, is the technology leader in drip irrigation in the India. The current production capacity of 6 crore meters of dripper lines per annum will be increased up to 9-10 crore meters per annum by the third quarter of fiscal 2004-05," said a company release.

Zvi Feler, managing director, Netafim Irrigation India, said, "We see India as an important destination for drip irrigation systems. In drip irrigation coverage, India is second only to the US and way ahead of China. We expect the market to grow by a steady rate of 20 per cent to 25 per cent per annum for the next couple of years. The demand for our technologically superior products is also improving and our expansion is in line with this increasing demand."

Drip irrigation is a method of irrigation that delivers a measured amount of water through an emitter located near each plant to be irrigated at frequent intervals. Drip irrigation can take place above or below ground and is one of the most efficient methods of irrigating the crop, the release said.

"'More crop per drop is the driving philosophy of Netafim. Netafim India is a complete solution provider, which offers the complete irrigation and agronomic support to the farmers. The company is contributing in various wasteland development and micro irrigation projects across the country," the release said.

The Rs 350 crore company has a modern, ISO 9001:200 and ISO 14001:1996 manufacturing facility at Salvi in Vadodara.

It started with a production capacity of two crore metres per annum in May 2002. It was upgraded to over six crore metres and the company plans to increase its production capacity to over 10 crore metres per annum in the next financial year with an investment of Rs five crore, the company said.

Apart from catering to the domestic demand, the company plans to capatilise on exports. At present, exports contribute around 10 per cent to its turnover and has targetted exports of over 25 per cent in the next financial year.

At present, the company has about 15 per cent of the country's share in drip irrigation, while its parent company Netafim ACS, has 26 per cent of the global share in the drip irrigation industry.

The company has four manufacturing bases in Israel, two in China, one each in the US, Brazil, Australia and India.

The company is exporting to China and will send its first consignment ten lakh metres to the US in April this year.

The company's cumulative growth during the last two years was around 50 per cent and with the expansion in the manufacturing base, the company has targetted a growth rate of over 80 per cent in the next financial year.

Netafim has already allocated 17 per cent of the first phase of Rs 12,000 crore Andhra Pradesh Micro Irrigation Project and plans to set up its manufacturing unit in Andhra Pradesh by the end of the next financial year with an investment of over Rs 15 crore.