Jain Irrigation: The New Sustainability Champion
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Case Code: SUST026 Case Length: 20 Pages Period: 1982-2016 Pub Date: 2017 Teaching Note: Available |
Price: Rs.400 Organization: Jain Irrigation Industry: Agriculture, Manufacturing Countries: India Themes: Corporate Responsibility, Business Models |
Abstract Case Intro 1 Case Intro 2 Excerpts
Excerpts
Increasing Micro Irrigation Initiatives
The underground water availability had fallen drastically in India after Independence (1947). Countries where the availability of water went down to below 1,000 cubic meters per person per annum were considered to be water scarce. In India, the figure came down from 6,000 in 1947 to 1,250 in 2008 . Lack of technology in agriculture led to the adverse groundwater situation.
In India where farming was the main occupation, farmers with small holdings faced problems sometimes due to excess rainfall and often due to severe drought. Small farmers were in no position to afford expensive irrigation systems. At the same time, they faced problems owing to unavailability of groundwater due to the depleting water tables and wastage of water. For such farmers, the solution lay in micro-irrigation systems. The need for promoting agriculture scientifically was clear as the government provided a subsidy of 50 percent to farmers to buy micro irrigation systems...
Inclusive Business
Bhavarlal was initially skeptical about the acceptability of MIS. Some of the challenges in making MIS a reality were the cost associated with the products as they had to be imported, the land holding pattern of farmers in India being small (drip irrigation was suitable for large farms), and the low level of awareness farmers had about the benefits of micro irrigation. To test the feasibility of drip irrigation systems, the company first introduced the products within its farms in Jalgaon. They were then launched commercially . To increase the acceptability of drip irrigation among farmers, Jain Irrigation created a team of agronomists who studied specific regions and explained to farmers the benefits of micro irrigation. The subsidy provided by the governments for purchasing MIS was a huge relief to the company as they could market the products better. As more farmers witnessed the higher yield with low usage of water, the products gained acceptability...
The Subsidy Quandary
However, the key factor in the success of the MIS products was the subsidy provided by the governments, which covered almost half the price of the products. Jain Irrigation maintained close coordination with Yes Bank, Central Bank of India, IDBI Bank, and others for facilitation of the process...
Looking Ahead
Jain Irrigation spent approximately Rs. 5 billion on organic expansion since 2013 to increase its capacity in various verticals. Anil Jain believed the company recovered well after 2012, and would be able to grow at a CAGR of 20 percent in the next few years, he also pointed out, "Our main goal is to leverage our existing strengths to expand our business in the long term. We intend to be the best water, food, and natural resource-management-company in the world, while creating value across the agriculture value chain."...
Exhibits
Exhibit I: Profit and Loss Statement of Jain Irrigation (2010-14)
Exhibit II: Balance Sheet of Jain Irrigation at March 31 (2010-14)
Exhibit III: Impact of Jain Irrigation
Exhibit IV: Water Footprint Assessment
Exhibit V: Watershed Development
Exhibit VI: Products at Jain Irrigation
Exhibit VII: Farmers Benefitted by Micro Irrigation practices
Exhibit VIII: Corporate Offices
Exhibit IX: World Operations
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