Jain Irrigation buys Swiss machine maker Thomas

Jain Irrigation Systems today said it had acquired a 69.75 per cent stake in Switzerland's Thomas Machines, with full management and operational control.

In addition, Jain has entered into a shareholders' agreement with the owner of the remainder 30.25 per cent shares of Thomas Machines, with a call option that can be exercised over the next three years, the company informed the Bombay Stock Exchange.

The company said the existing management would continue to run the day-to-day affairs of the company and the original owners would continue to advise the company, which also is into the fruits and vegetables processing business. It, however, did not disclose any financial details.

Thomas Machines manufactures specialist machines for drip irrigation lines, quality control and testing equipment, automation equipment, laser machine centres and laser products.

The acquisition will help Jain Irrigation invest in capacity for new-generation drip lines, including precision irrigation products. The Swiss firm has valuable IPRs and cutting-edge technology in its irrigation and composite pipes businesses.

"We are excited about the potential of Thomas Machines to contribute in the growth of our drip division," said Ajit Jain, joint managing director.

"We have not only secured technology for our growing division, but now we are a step ahead of the competition in terms of the quality of products."

Jain Irrigation shares hit a 52-week high of Rs 770 during trading today, before falling back to close at Rs 739.70 on the Bombay Stock Exchange, a gain of 3.19 per cent over its weekend close.