About the Company:
The company is a global leader in providing agricultural, piping, and infrastructure solutions, specializing in micro-irrigation systems, plastic piping products, and agro processed goods. It is recognized as one of the world’s largest producers in micro irrigation, polyethylene pipes, and tissue culture plants, with a significant presence in both domestic and international markets. The company operates across multiple business segments, including Hi-tech Agri Input Products, Plastic Division, and Agro Processing, catering to over 10 million farmers worldwide through its extensive distribution network.
In recent years, the company has shifted its focus towards the retail segment, reducing its exposure to project-based business, and expanding its product offerings in tissue culture and urban infrastructure. It has also undergone significant debt restructuring and completed a merger of its international irrigation business, which has substantially reduced its debt levels and strengthened its financial position. The company continues to prioritize debt reduction and recovery of receivables, while aiming for growth in new geographical areas and the food business sector.
Our investment interpretation :
Our investment in this company stemmed from its strategic shift towards deleveraging post-restructuring, significantly strengthening its financial position. The company’s large-scale operations, coupled with a focus on reducing debt and recovering receivables, aligned with our belief in its long-term potential for value creation. We identified multiple growth avenues, particularly in micro-irrigation, tissue culture, and agro-processing, which offer diverse opportunities beyond traditional agriculture.
The company’s decision to reduce exposure to long-gestation government projects reflects a disciplined approach, learning from past challenges and focusing on high-return, ROCE-driven initiatives. With its robust infrastructure and presence in both domestic and international markets, the company is well-positioned to capitalize on India’s agri-growth story and the increasing global demand for sustainable agricultural solutions.
Our understanding of the company’s vision have led us to maintain high conviction in its ability to generate long-term value, particularly as part of India’s broader growth narrative.
Returns:
MCap on date of Investment: INR 2,661 Crs.
MCap on date of Exit/ Today: INR 4,811 Crs.
Multiple on Invested Capital (MOIC): 1.8x
