Netafim Irrigation lines up Rs 27 cr for expansion

Netafim Israel, world's leading manufacturer and supplier of a wide range of irrigation equipment, will expand its production capacity in India through its 100 per cent subsidiary "" Netafim Irrigation India (NIIPL) with an investment of Rs 27 crore by 2008.

Managing director of NIIPL, Zvi Feler said, "We have already chalked out plans for the augmentation of the production capacity in India."

On Saturday, NIIPL added its fourth extruder machinery with a production capacity of 4.5 crore meter per annum.

The production will now surge to 11 crore meter per annum which at present is 6 crore meter per annum, added Feler.

The extruder machine is used to produce continuous lengths of plastic sections like plastic tubes.

Netafim is developer and manufacturer of low-flow irrigational products and drip system.

Currently the company is increasing the production of specially manufactured plastic water tubes that are used in drip irrigation in India.

The company holds a global market share of 26 per cent and enjoys unrivalled position in India.

Netafim has 11 manufacturing plants world over with operations in more than 110 countries.

It has an annual global turnover of Rs 1,500 crore and invests 5 per cent of its turnover.

Feler further said, "We will be adding the fifth extruder machine by June 2006 end."

This will further augment our gross output up to 15 crore meter per annum by the year end, he added.

For the currently installed Extruder, the company has invested Rs 3 crore and for fifth machine it will invest around Rs 4 crore.

The company intends to expand its production by 2008.

"After the completion of the installation of the fifth Extruder machine by June 2006, we will further add five extruder machines by 2008," said Feler.

"By 2008, the production of the plastic tubes will reach up to 25-30 crore meter per annum," he added.

The company will be investing Rs 27 crore for the expansion plan which includes purchasing of five extruder machine and construction of a manufacturing shed.