The Hindu Business Line : Netafim to expand, set up plant in AP

THE Vadodara-based Irrigations Solutions Provider, Netafim Irrigation India Pvt Ltd, has firmed up plans to hike its plant capacity in Gujarat for the production of drip irrigation facilitating pipes and set up a new unit in Andhra Pradesh.

A 100 per cent subsidiary of Netafim ACS, Israel, Netafim Irrigation India is banking high on the micro-irrigation projects in Andhra Pradesh and Maharashtra to up its investments and sees a big growth, Mr Zvi Feler, Managing Director of India operations said.

India has been identified as a strategic hub for Asia-Pacific region by the Israeli parent, which has 25-26 per cent of the global drip irrigation market, estimated to be around Rs 5,000 crore.

However, in the growing Indian market of around Rs 350 crore, the company has 15 per cent share.

While proposing to increase capacity of the Savli plant in Vadodara, Gujarat from 10 crore metres/yr to 15 crore metres/yr and add plant machinery, Netafim plans to invest up to Rs 12 crore in setting up a six crore metre/yr manufacturing plant in Andhra Pradesh, where it has bagged a contract of around Rs 1.5 crore from the AP Micro-Irrigation Project (APMIP), Mr Feler told newspersons.

In phase-I of the Rs 1,250-crore APMIP, Netafim, which is one of the three companies providing inputs, has to provide drip irrigation facilities to 30,000 hectares out of the 2 lakh. "Once the Andhra and Maharashtra projects gather steam, the Indian drip irrigation market will see a dramatic jump. Today India is second to the US in drip irrigation, but the gap is yawning," Mr Feler said.

Netafim Irrigation India has, so far, done one lakh acres of installation and has operation in 10 States. Starting in 1997, the company has 275 employees and makes `tailor made products' to suit the drip irrigation needs of the farmers.

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