Jain Irrigation

01 JULY, 2009 INITIATING COVERAGE
JAIN IRRIGATION SYSTEMS LTD.
RESEARCH
CMP : Rs. 643.00 BUY
COMPANY DETAILS
COMPANY OVERVIEW BSE Code 500219
NSE Symbol JISLJALEQS
Jain Irrigation Systems Ltd., is India's biggest and World's second largest
Bloomberg Code JI IN
manufacturer of micro irrigation system and is thus the best play on the Market Cap (Rs. Crs) 4701
government's increased thrust on agriculture and irrigation. The company Free Float (%) 67.6
has other businesses, which includes piping and agro-processing, have 52-wk H/L (Rs.) 689 / 229
been exhibiting strong historical growth and are set for strong growth in Avg. Daily Volume 23695
the future, driven by increasing investments in infrastructure and Face Value Rs. 10
consumer spending. Beta 0.6
Management: Anil Jain has been JISL's MD since 1993 and heads all its
businesses, including all its subsidiaries. The founder, Bhavarlal Jain, is the SHARE HOLDING
Chairman of the company. Promoter 32.4
FIIs 47.71
Plants located all across the world: The Jalgaon plant remains the Non Promoter Corp. 9.76
company's largest facility in India, manufacturing micro-irrigation Financial Institution 5.77
systems, pipes, plastic sheets and agro-processing. The acquisitions of Others 4.37
Terra Agro, and Parle Bisleri's plants added facilities in Coimbatore and
Chittoor for manufacturing MIS systems and food processing equipments,
respectively. Subsequent to recent acquisitions, the company has facilities FINANCIAL HIGHLIGHTS
FY09 Consolidated
in Israel, US, Latin America and South America. (Rs Crores)
Share Capital 163
Debt 1274
VALUATION & RECOMMENDATION Net Sales 2913
PAT 228
At CMP of Rs. 640, stock trades at forward P/E of 10.4x and 7.3x based on
EPS(Rs) 30.8
consolidated expected EPS of Rs. 62 and Rs. 87 for FY11E and FY12E
respectively. We believe, given Jain's positioning in the agri infrastructure
space and potential of its food processing business, that the stock is
reasonably valued at this point of time. Risk to our recommendation,
however, would come from slowdown in MIS, margin compression due to
high resin prices, delay in Government subsidy and unfavorable weather
(inadequate monsoon due to El-nino effect, etc.) disrupting raw material Share Price graph in last 1 year (Rs.)
inputs for food processing activities. Infusion of capital from IFC augurs
well for the company and it can provide further support to the company to
expand its business overseas as well as in executing World Bank funded
irrigation projects.
ANALYST
Kinshuk Acharya
kinshuk@eurekasecurities.com
092315 49900 / 91-33-3918 0387
EUREKA RESEARCH www.eurekasecurities.com
INITIATING COVERAGE
01 JULY 2009
INVESTMENT RATIONALE
• Leading player in Indian Micro Irrigation Space:
A large untapped irrigation market (67% of cultivated land is still rain-fed), coupled with the government's subsidy for
micro-irrigation projects (projected at US$15bn in the Eleventh Five-Year Plan), offers a huge growth opportunity for
makers of micro-irrigation systems. As the company enjoys 55% market share in this segment, it is expected that
conservatively the company will have an opportunity of at least US$5 bn over FY07-12. The company, with its strong
relationships with farmers and strong R&D capabilities is well placed to exploit this opportunity. Furthermore, the
company's overseas acquisitions should offer access to new technology and markets. We estimate a 50% CAGR in
revenues over FY07-10 for the micro-irrigation segment.
• Enhancement of subsidy share by some of the states like AP, MP, UP, Karnataka etc., would provide extra impetus in
enhancing the usage of MIS/SIS system in the coming years.
• Other businesses verticals likely to show strong performance in the future: The piping segment (which contributed
33% of FY09 revenues) should clock 30-35% CAGR growth over the next 2-3 years, driven by investments in infrastructure,
telecom and city gas distribution.
• Dehydrated Vegetables and Fruit Processing would be a major growth driver: Agro-processing is still a nascent
industry in India, with the country processing only ~2% of its produce, however, JISL has focused primarily on the
overseas market with over 75% of its Food Processing sales arising from exports. With increasing consumer awareness of
health foods, there is huge potential for growth in the agri-processing business in the domestic market.(16% of JISL's
FY09 revenues). We expect JISL's sales from Food Processing to grow by over 25-30% going ahead with healthy and
sustainable margins of 16-17%.
• Key risks: Any change in government policy or deceleration in implementation of projects could temper growth.
The company is vulnerable to increase in raw material prices such as polymers and raisins and PVC granules etc., all of
which are crude derivatives. With the expectation that the crude prices are going to be increasing here onwards, there can
be pressure on the operating profit margin of the company going forward if it is unable to pass on the raw material price
increase fully to its end consumers.
BUSINESS SEGMENTS
All of JISL's businesses micro-irrigation (contributing ~42% of FY09 revenues), piping (~33%), agro-processing (~16%) and
plastics (~7%) are poised to see strong growth, though the plastics segment could see some deceleration on account of the
housing slowdown in the US. Subsequent to recent acquisitions, the share of micro-irrigation is likely to increase in the next
few years.
Revenue Contribution FY09 Revenue Contribution FY08
EUREKA RESEARCH 2 www.eurekasecurities.com

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01 JULY 2009
MICRO-IRRIGATION PRESENTS A HUGE OPPORTUNITY
The company received 42% of its revenue from micro irrigation segment in FY09 compared to 35% in FY08. JISL is one of the
few organized players in the micro-irrigation market (including drip and sprinkler systems) in India. In the past, demand for
micro-irrigation systems has stagnated on account of: a) lack of capital; b) lack of incentive for farmers, since water/
power are free; and c) low awareness of the cost benefits of micro-irrigation. JISL, with its extensive dealer network has
sought to deal with the third challenge. Through its efforts at training and educating farmers (JISL organizes visits to its
model farms at Jalgaon), the company has managed to create demand and sustain growth. The government's recent focus
on micro-irrigation and the subsidy plan proposed is likely to do away with the first challenge. In effect, the domestic
micro-irrigation market is poised to see tremendous growth, and JISL, thanks to its existing relationships with farmers and
dominant market share, is well placed to benefit from this.
JISL has sought to bolster its presence in the overseas markets also and has acquired several companies over the past few
years.
TARGET CAPACITY DATE PARTICULARS INVESTMENT DETAILS

Eurodrip Feb-06 Greece based, Acquired 7.5% stake, Acquired for :£3.5m
Access to US, Turkey, Jordon, Egypt, Greece FY04 revenues :35m
Chaplin Watermatics May-06 US-based, Acquired 100% stake. JISL entry in Consideration :US$6.8m
world's largest market, Strong franchise FY-07 Revenues : US$10m
Access to US, Mexico, Europe and Africa. Revenue potential : US$25m
Extensive distribution and product line.
Execution of turnkey projects
Acuarius Brands FY-07 US based, Acquired 100% stake. Strengthens Consideration : US$21.5m
presence in the US (2nd largest) Strong brand FY-07 revenues : US$30m
equity Strong franchise Possibility of cross Revenue potential : US$50m
border trade Widest product offerings (Agri,
landscape, Turf, Mining, etc.) strong R&D
NaanDan Irrigation, Israel May-07 Israel based, Acquired 51.% stake JISL becomes Consideration : US$21.5m
the second largest global players in the FY-07 revenues : US$75 m
micro-irrigation system. Expertise in the large Revenue potential : US$100 m
scale agro-products Presence in France, Italy,
Mexico, Brazil, Chile, Spain and Australia
Strong R&D Possibility of cross border trade

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01 JULY 2009
THE STRUCTURE OF THE COMPANY AFTER ACQUISITION HAS BEEN PRESENTED BELOW
Source: Company
GROWTH DRIVERS IN THE MIS SEGMENT
With agricultural growth decelerating to 1.6% in FY'09 vs 6.5% during the 1960s, the government's focus has recently shifted
towards improving agricultural productivity. Existing methods of irrigation (including canal irrigation) have been found to
be wasteful and micro irrigation is now seen as the best solution. The total irrigation potential from surface and ground
water sources would be around 140mn hectares (MHa). Out of the total sown land, over 71 MHa is rain fed while the
immediate MI potential that can be created through major and medium irrigation projects is 69 MHa, and surface water
based minor irrigation projects is over 17.5MHa. Out of 69 mha (million hectares) under irrigation in India, it is estimated
that only ~3mha is under micro-irrigation as depicted in the following flow diagram, which signifies there exists huge scope
for further Micro Irrigation in India. JISL is the leading player among the organized players accounting for a sizeable chunk of
the MI market.

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SCOPE & OPPORTUNITIES OF MIS IN INDIA
Bharat Nirman targets to cover over 10MHa new

area under irrigation by 2010. It also proposes to
bring in another 5MHa land under irrigation
though improved utilisation of the existing
potential. During the Tenth Plan, the overall
public investment on irrigation was Rs96,720 cr
creating an additional 8.8MHa potential. The
Eleventh Plan proposes an estimated outlay of
about Rs2,10,000 cr on irrigation, with the
potential of creating additional 14MHa and most
of the funds (Rs1,72,000cr) would be earmarked
upon by the State Governments.
Source: Company
COMPONENTS UNDER XI PLAN TARGET

Completion of ongoing Major and Medium Irrigation projects 4.2 Mha
Minor irrigation schemes 2.8 Mha
- Surface Water 1.0 Mha
- Ground Water 1.8 Mha
Enhancing utilization of completed projects 2.1 Mh
- ERM of major and medium projects 1.0 Mha
- Repair, renovation and restoration of water bodies/ERM of minor irrigation schemes 1.0 Mha
Ground Water development in area with utilized ground water 1.0 Mha
potential(for benefit of small & marginal farmers and Tribals & Dalits
TOTAL 10 Mha
To facilitate irrigation growth, the government has taken certain affirmative steps, which will bring about a radical change
in the Irrigation sector going ahead. The government is extending subsidies to the farmers to promote the use of Sprinklers
and Drips for irrigation purposes. Micro Irrigation is a Centrally Sponsored Scheme under which out of the total cost of the MI
System:
• 40% would be borne by the Central Government
• 10% would be borne by the State Government
• The rest would be borne by the beneficiary

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01 JULY 2009
MICRO IRRIGATION STATEW WISE SUBSIDY AVAILABILITY

STATES GOVERNMENT SUBSIDIES JAIN IRRIGATION
DRIP SPRINKLER MARKET SHARE
Maharashtra 50% 50% 65%
Gujarat 50% 50% 30%
Andhra Pradesh 70% 70% 35%
Tamil Nadu 50% 50% 60%
Karnataka 75% 50% 60%
Madhya Pradesh 70% 70% 60%
Chattisgarh 70% 70% 50%
Punjab 75% 75% 50%
Bihar 60% 60% 60%
Himachal Pradesh 50% 50% 50%
Rajasthan 70% 70% 50%
Kerala 50% 50% 50%
Uttar Pradesh 75% 75% 50%
Uttarkhand 50% 50% 50%
Source: Company
Apart from the initiative taken by the Central government, certain States are also pushing the farmers to understand the
benefits of MI Systems. States like Andhra Pradesh and Uttar Pradesh etc.,have taken specific steps to promote MI Systems.
Originated in Maharashtra, the concept is now widely being accepted in South India. It is gaining momentum in the Central
and Northern regions of India as well. JISL has witnessed over 100% growth in Madhya Pradesh and similar results are being
witnessed in Punjab and Haryana, among other States.
Besides concentrating on the geographical reach, JISL is also expanding the crop coverage from fruits to cotton, chilly,
vegetables, etc. As for the equipment, over 2/3rds of the parts need replacement in 5-7 years and the remaining steel parts
need replacement in 10-20 years. Hence, the replacement demand is still quite low. Nonetheless, there is an over 95% virgin
market to be tapped, which offers significant potential for future growth. For instance the company currently gets almost
40% of the total Revenue from Maharashtra, while AP is the 2nd largest state for the Company after Maharashtra in revenue
share, however, there is still enough growth potential in these states available for the next 3-4 years. TN and Gujarat are
the fastest growing States after Maharashtra & AP and Gujarat has the highest potential among all the progressive
agriculture states. Punjab, even though on a smaller base, is the fastest growing State in North-East Region. Recently UP has
announced Rs. 400 crore for MI Project and as presented in the earlier table, some of the States under specific schemes are
extending 30% subsidy as their share as against normal 10%.
TN-IAMWARM
Jain Irrigation has bagged the prestigious TN-IAMWARM (Irrigated Agriculture Modernisation and Water bodies Restoration
and Management) order of the World Bank valued Rs 77.80 crore covering 22,345 hectare (ha) to be executed during the
current calendar year. The company would supply and install drip and sprinkler irrigation systems in over 22,345 ha covering
25 basins. In addition to supply and servicing of drip and sprinkler irrigation systems, Jains will be involved in promoting
crop diversification and enhancing farm incomes through value-chain building in specific crops.

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01 JULY 2009
CURRENT REVENUE HISTORICAL GROWTH EXPECTED GROWTH

REGIONS STATES (last 2 yrs.) (next 3 yrs.)
SHARE
Western 55% MH 85% 50 - 60%
GUJ 128% 60 - 80%
MP & CG 149% 80 - 100%
Southern 40% AP 48% 50 - 60%
TN 98% 60 - 80%
OS 23% 50 - 60%
North East 5% PUN & HP 221% 80 - 100%
RAJ 80% 80 - 100%
OS* 94% 100 - 200%
* North-East Other States (OS) includes UP & Bihar Source: Company
A government-appointed task force has proposed to bring 14 mha under micro-irrigation during the Eleventh Five-Year Plan
(FY07-12) at an estimated cost of US$15bn and a subsidy plan under which, 50% of the equipment cost would be funded by
the government and the balance by the farmer (institutional credit access provided for). We estimate a market opportunity
of US$5bn (assuming 5mha comes under micro-Irrigation, with every 1mha translating into a US$1bn market opportunity).
As mentioned earlier, JISL, with a market share of 55% in micro-irrigation in FY'09, established relationships with farmers in
high-growth areas (including Maharashtra and Andhra Pradesh) and an extensive dealer network (1,685 outlets currently),
is ideally placed to benefit from this opportunity.
DEALER NETWORK
STATE Plant Offices Depot Dealers CONTINENT Plant Offices Distributors
Maharashtra 4 15 9 730 Australia 1 2 150
Madhya Pradesh - 1 3 124 Middle East - - 16
Karnataka - 3 2 158 Europe 2 5 253
Gujarat 2 4 1 133 South America 2 3 200
Tamil Nadu 1 5 3 57 North America 6 7 257
Rajasthan - 3 5 25 Africa - 1 15
Andhra Pradesh 3 22 4 283 Asia 2 3 5
Other States - 15 11 175 TOTAL 13 21 891
TOTAL 10 69 38 1,685 Source: Company
In terms of industry size, the company is suitably poised to reap the benefit of the huge opportunity that exist in the micro
irrigation as an industry as depicted by the following table:
CURRENT / EXPECTED INDUSTRY SIZE
REVENUE (YEARLY) AREA COVERED (AVERAGE)

JAIN US$ 207 MILLION 310k Hectors
INDUSTRY US$ 410 MILLION 600k Hectors
ANNUAL POTENTIAL (in next 2-3 years) US$ 1-2 BILLION 1 - 2 Mha
Total potential for the irrigated area is about Rs. 2,613 bn (~US$ 67 bn)
Source: Company

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GLOBAL SCENARIO
Globally too, the penetration of MI is about 14% with the American region leading the way with over 13.3MHa area under MI.
Europe comes in second, with 10.1MHa area under MI. The Asian region with maximum arable land of over 194MHa is the
most under-utilised in terms of MI, with only 6.8 Mha area under MI.
(Area in Million Hectares)
Proportion of
No. of Available Sprinkler Drip Total Micro Available
Region Countries Irrigated Area Irrigated Area Irrigated Area Irrigated Area Irrigated Area
1 2 3 4 5 6 = 4+5 7 = 6/3
Americas 2 41.9 13.3 1.9 15.2 36%
Europe 35 25.2 10.1 1.8 11.9 47%
Asia 46 194 6.8 1.8 8.6 4%
Africa 53 12.5 1.9 0.4 2.3 18%
Ocenia 5 2.6 0.9 0.2 1.1 42%
World Total 174 276.1 32.9 6.1 39.1 14%
Global coverage of Sprinkler and Drip Irrigated Areas is 33 Mha & 6 Mha, respectively. Area under Drip Irrigation increased
almost six fold during last 20 years from1.1 Mha in 1986 to 6.1 Mha at present. The driver, so far, for such growth has been
the conversion of Gravity/Sprinkler farmers to drip irrigation farmers. However along with the trend of this conversion
continuing in the international market, scope for Replacement Market would also act as a growth driver in the future.
PRICE & REALIZATION MECHANISM OF MIS FROM FARMERS
The average cost of Drip Irrigation System is in the range of Rs. 40,000-50,000/ Ha depending on the location, and
assistance of a maximum 50% is provided to the beneficiary. The average cost of Sprinkler Irrigation System is lower at
Rs13,500-17,500/ Ha depending on the Sprinkler system. Financial assistance up to 50% is provided in case of Sprinkler
Systems subject to a maximum limit of Rs7,500. The difference is primarily due to the movable characteristics of Sprinkler
Irrigation Systems, which can actually cover more than a hectare area by moving around the sprinkler. JISL is actively
involved in providing MI systems to the farmers. The Central and State government subsidies are directly given to JISL. The
money is usually received in 90-180 days but usually there some procedural issues that could delay it. But, till date
importantly, there have been no bad debts in this regard. The farmers usually contribute through their own savings or
through loans from banks and the company receives the money almost immediately after the system is installed.

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MICRO IRRIGATION SUBSIDY ADMINISTRATION & CASH-TO-CASH CYCLE
Collection Cycle:
Average Cost (per Hector)
Drip & Sprinkler UD$ 1000
Farmers' Contribution 50%

Subsidy 50%
(Cash Contribution/
(Federal 40% & State 10%)
Loan from Banks)
Get Collected 5-10% Advance

Get Collected in 90-180 Days
and the Balance on Installation
Source: Company
Subsidy Administration
Subsidy Disbursement
Source: Company Presentation

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01 JULY 2009
IN-HOUSE R&D AND TECHNOLOGY TRANSFER SUPPORT GROWTH
The company's recent foray into new crops such as cotton (on which yields have improved 2-3 times during the past season)
has been supported by technology transfer from its recent acquisitions, including that of the Israel-based Naan Dan
Irrigation. This new technology and in-house innovations would enable the company to foray into newer crops (including
potato, oilseeds and chillies) and regions (including Chhattisgarh and Rajasthan). Product innovations should also help the
company maintain margins in the face of spiralling raw-material prices (eg, polymer, which accounts for more than 50% of
costs), without raising prices for farmers.
States having micro irrigation projects in the process of implementation
STATES STATES
Andhra Pradesh Proposes to cover 0.2 mha under micro irrigation: Budgeted Outlay Rs 11.7 bn
Chandigarh Bring more land under micro irrigation: Budgeted outlay Rs 250 mn
Tamil Nadu Modernisation of Irrigation facilities (including micro irrigation systems) over 5 year period: Outlay of Rs 254 bn
Rajasthan Proposes to cover 0.6-0.7 mha under micro irrigation: Budgeted Outlay Rs 20 bn
Financial Performance Analysis-MIS Segment
Rs. Cr. Q4FY09 Q4FY08 YOY FY09 FY08 YOY

GROWTH GROWTH
Sales Qty. (in tonnes) 24305 16090 51% 60302 41339 46%
Revenue 327.7 241.3 36% 951.5 619.9 53%
Contribution 127 92.8 37% 348.4 227.6 53%
Revenue / tonne (in Rs.) 134828.2 149968.9 -10% 157789 149955.2 5%
Contribution / tonne (in Rs.) 52252.62 57675.57 -9% 57776 55056.97 5%
Contribution / Revenue 39% 38% 37% 37%
Fixed Cost 20.5 17.4 18% 65 49.5 31%
Fixed Cost / Revenue 6% 7% 7% 8%
Variable Cost 200.7 148.5 35% 603.1 392.3 54%
Variable Cost / Tonne 82575.6 92293.35 100013 94898.28
EBIDTA 106.4 75.4 41% 283.4 178.1 59%
EBIDTA margin 32 31% 30% 29%
EBIDTA / tonne 43777 46861.4 -7% 46997 43082.8 9%
Despite significant slowdown in FY09, the company has managed to increase the volume of sale significantly in FY09. Major
growth for the company came from Andhra Pradesh growing at 69%, Tamil Nadu 280%, Uttar Pradesh 620% and Karnataka at
65% respectively. The margin for this segment improved by 100 bp for the full year, due to change in product mix of value
added products and lower raw material prices.
PIPING BUSINESS
The piping segment contributes 38% of revenues and is exposed to growing end-markets such as telecom infrastructure, gas
distribution and public investments in rural and urban infrastructure. Poly-ethylene (PE) pipes find extensive use in gas
distribution, telecom infrastructure, and water supply and sewage systems. PE pipes score over metal pipes because the
former have lower friction and are easier to install while costing the same. The company has expanded its product range in

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this business to include PVC pipes, HDPE pipes, cable-duct pipes and gas pipes. The piping segment has also historically
supported production of micro-irrigation systems, for which pipes constitute 27% of raw-material costs.
JISL has traditionally been in the PVC Pipes business, which were primarily used by the farmers for irrigation purposes and
some portion was utilised for the drinking water supply schemes. Over the past three years however, this Segment has
evolved with different applications for the pipes ranging from being used in the city gas distribution networks, for sewage
and waste disposal, telecom cables, etc. Some of JISL's esteemed clients include Vodafone, Bharti, Gujarat Gas Company
and IGL, among others.
GROWTH DRIVER IN PIPING SEGMENT
So far rapidly growing GDP and the infrastructure boom have fueled growth of the Piping Segment, which has clocked 30-
40% growth over the past 2-3 years. Earlier, JISL was restricted to a max of 300mm diameter pipes but, now the company
manufactures even 1+ meter diameter pipes depending on the application. Although at a nascent stage, this business is
rapidly gaining momentum in the Exports market.
After gaining a foothold in manufacturing and inventing newer applications, JISL is poised for implementing turnkey water
projects. With the rise in urban population, some state governments have plans to implement 24/7 pressurised water in the
big cities. This project requires an entire system from pumps to filtration to nodal pipelines up to the domestic consumer as
well as metering and monitoring. JISL has implemented a pilot project at couple of locations, response from which has been
encouraging. Management believes that implementation of such projects is likely to create a significant business
opportunity in future. JISL has recently signed an MoU for co-operating and working together with Mekorot, the National
Water Company of Israel for the development of water infrastructure projects in India the details of which has been
discussed in detail later in this report. This affirms the vast potential which can be exploited domestically and along with an
experienced player like Mekorot, we believe JISL will be able to tap this market successfully. However, for the time being
there is a status co in this venture, as in the wake of the global recession, the company is giving more focus in its existing line
of business.
JISL is also planning to launch piping products for plumbing applications as well as pipes for home drainage. The company
commands a leading position in supplying pipes for city gas distribution companies. Currently, only 5-7 cities are covered
under city gas distribution and the soaring oil prices have prompted expansion of the city gas distribution network across
cities. This expansion is likely to result in significant demand over the next few years. Domestically, JISL competes with
Finolex, Supreme and Duraline in the Pipes Segment. But, the market is large enough to accommodate all the players, thus
eliminating threat from competition.
The company expects a CAGR of 40% in this segment's revenues

over FY08-11E. We believe growth in demand for HDPE & MDPE
pipes could accelerate further, driven by public investments in
water distribution systems, sewage systems and urban
infrastructure, and private investment in telecom infrastructure
and gas distribution systems.
Orders from existing clients (among them Indraprastha Gas and Airtel) and new project wins (including the water
distribution project in Karnataka) should continue to drive the momentum. The company's foray in the water project

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execution segment in JV with Mekorot, would also contribute significantly to the volume growth in this segment. In
addition, infrastructure investments in Africa and the Middle East would also bring about significant growth in export
revenues. While EBITDA margins in this segment have hovered around 10-12% in the last few years, this segment could see
potential margin expansion of 100bps over the next few years. In the 11th 5 year plan over US$ 42 bn has been allocated for
infrastructure development and this would drive as the growth driver for the company going forward.
Financial Performance Analysis-Pipe Segment
Performance Analysis - PVC Pipes

In Rs. Crore Q4FY09 Q4FY08 YOY FY09 FY08 YOY
GROWTH GROWTH
Revenue 127.9 94.5 35% 413.5 289.6 43%
Contribution 15.6 10 56% 44.6 33.2 34%
Revenue / tonne (in Rs.) 63873.35 70385.82 -% 62882 62655.5 0%
Contribution / tonne (in Rs.) 7790.651 7448.235 5% 6782.4 7182.882 -6%
Fixed Cost 4.3 3.9 10% 12.7 10.1 26%
Variable Cost 112.3 84.5 33% 368.9 256.4 44%
EBIDTA 11.3 6.1 85% 31.9 23.1 38%
EBIDTA margin 9% 6% 8% 8%
EBIDTA / tonne 5643.228 4543.423 24% 4851.1 4997.728 -3%
The company registered a revenue growth of 84% from Maharashtra region, 2.3 times from Karnataka 47% from Tamil Nadu
and 86% from Madhya Pradesh.
Performance Analysis - PVC Pipes

GROWTH GROWTH
Sales Qty. (in tonnes) 10016 11770 -15% 30983 36837 -16%
Revenue 93 121.2 -23% 333.7 373 -11%
Contribution 15.5 21.2 -27% 55.6 56.6 -2%
Revenue / tonne (in Rs.) 92851.44 102973.7 -10% 107704 101256.9 6%
Fixed Cost 3.8 3.3 15% 13.6 10.1 35%
Variable Cost 77.5 100 -23% 278.1 316.4 -12%
EBIDTA 11.7 17.8 -34% 42 47.8 -12%
EBIDTA / tonne 11681.31 15123.19 -23% 13556 12976.08 4%
The PE pipe division underperformed significantly as a result of slowdown in telecom sector for duct application, which
declined by 57% in Q4FY09. During same period last year, Alcatel bought large quantities for export market. However, water
distribution application which grew by 57% during Q4FY09 has helped to bridge part of the deceleration.

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For the full year duct application declined by 59%, while Water and Gas application grew by 65% and 2% respectively.
Moreover, High polymer prices and slowdown in infra structural sector resulted into sever under performance of the division
during FY09.
AGRO PROCESSING BUSINESS
Leveraging its strong relationships with farmers, the company entered the processed fruits and vegetables business about a
decade ago. Currently, mangoes contribute a large share of fruit processing revenues, with Coke being the largest client.
JISL has been aggressive in pursuing inorganic growth in this segment. The acquisition of Parle Bisleri's facility in February
2006 made JISL the largest fruit processor in the country. With the acquisition of US-based Cascade Specialties in Nov-06,
the company's total onion dehydrating capacity increased to 25000 MTs and enabled JISL to become the third largest onion
dehydrator in the world. The company is looking to foray into newer fruits and vegetables, including citrus fruits, green
peas and carrots. The company is also engaged in other businesses including bio-tech tissue culture (for fruits, vegetables
and flowers). While this business is small (contributing <15% of JISL's sales during FY08), it has significant scope for growth,
with demand from both domestic and overseas markets expected to be healthy.
In the Dehydrated Vegetables Segment, JSIL is primarily focused on the Onion Dehydration market, which is growing at 7-8%
pa. India currently is second next to the US in Onion Dehydration capacity. The world-over, Onion Dehydration capacity
stands at around 1,75,000MT while JSIL ranks third with a total capacity of about 25,000MT. Acquisition of controlling stake
in Cascade Specialties has given JISL access to the largest market in the world ie., the US. JSIL has already rationalised
operations in India at two locations from the earlier five locations. This has in turn improved the company's efficiency levels
in the Segment. India is the second largest producer of fruits after China. Although, India accounts for around 10% of the
total global fruits production, fruit processing has been limited to a mere 2% of the production. Hence, realising the
opportunity, JISL has rationalised its operations and has already put up significant capacities.
During FY2007, the Fruit Processing Segment registered volume growth of over 100%, which signifies the potential of this
Segment. The domestic fruit juice and nectar business is growing at a CAGR of around 25%, which offers a good potential for
JISL. Also, there is a rapid growing demand for Mango, Pomegranate and other fruit juices from the overseas market
providing a sizeable opportunity. Currently, the company supplies bulk fruit juices under the brand name, Farm Fresh. This
business fetches healthy Margins of 16-17%, which are sustainable going ahead. India is lacking in Cold Supply Chain for
transportation of fruits and vegetables. By virtue of its perishable nature, some output is always lost during normal
transportation. But, JISL has developed its own cold supply chain for its Food Processing business.
Agro-processing: expect rapid growth to continue
JISL's agro-prrocessing revenues registered a 35% CAGR (JISL ex-acquisitions) over FY03-09. The company expects to
register a growth of 40%+ in the domestic market and 25%+ in the overseas market in the next 3 years. The company has
aggressively pursued growth in this business; for instance, its acquisition of the US based Cascade Specialities in November
2006 has made JISL the world's third largest manufacturer of dehydrated onions. With India being the world's second largest
producer of fruits and vegetables, yet processing only 2% of all its produce (vs 50-80% in Brazil, Malaysia, Israel and the US),
this market has huge scope for growth.

INITIATING COVERAGE
01 JULY 2009
Currently for FY10, the company has an order book position of Rs. 278 crore including Rs. 75 crore order for
dehydrated onion. Coca Cola is one of the most important customer of the company and an order worth Rs. 158 crore
has been placed with the company for FY 10, compared to Rs. 80 crore order placed by the company in FY09.
The company plans to expand its product portfolio (which currently includes processed mangoes, pomegranates and guava)
to oranges and other citrus fruits.
Performance Analysis - Fruit Pulp & Puree

GROWTH GROWTH
Revenue 59.9 71.7 -16% 218.3 167.1 31%
Contribution 16.6 16.9 -2% 56.7 44.7 27%
Revenue / tonne (in Rs.) 67767.85 40333.01 68% 61092 42823.1 43%
Contribution / tonne (in Rs.) 18780.41 9506.666 98% 15868 11455.37 39%
Fixed Cost 5.5 5.2 6% 13.9 10.4 34%
Variable Cost 43.3 54.8 -21% 161.6 122.4 32%
EBIDTA 11.1 11.7 -5% 42.8 34.4 24%
EBIDTA / tonne 12557.98 6581.538 91% 11978 8815.766 36%
There has been a significant de-growth that happened in terms of volume during FY09, mainly because of the fact that many
of the American and European customers deferred their delivery during the period in question. However, as per the
management there has not been any cancellation of the orders so far. Thus, the volume off take would be higher in the
current fiscal going forward. However, the company managed to get higher realization to the extent of 43% in FY09, mainly
because of the fact that the company was able to pass on the higher mango prices to the customers and because of the
rupee depreciation. Rupee depreciation also helped in maintaining margin for the company in this segment.
Performance Analysis - Dehydrated Onions / Veg

GROWTH GROWTH
Revenue 48.4 42.4 14% 133.4 88 52%
Contribution 13 12.3 6% 46.3 19.2 141%
Revenue / tonne (in Rs.) 116739 109025.5 7% 115859 99965.92 16%
Fixed Cost 3 2.3 30% 10.1 6 68%
Variable Cost 35.4 30.1 18% 87.1 68.8 27%
EBIDTA 10 10 0% 36.2 13.1 176%
EBIDTA / tonne 24119.63 25713.55 -6% 31440 14881.29 111%

INITIATING COVERAGE
01 JULY 2009
Dehydrated onions and vegetable witnessed a 31% growth in volume terms and 52% in value terms in FY09. Revenue Growth
from Europe has been 27% and from Other Countries 65% for the 4th Quarter. EBITDA margin dropped by 300 bp in Q4FY09 on
account of higher onion price, which the company was unable to pass on completely, to its end consumers. For the full year
the company saw a revenue growth of 54% from the US, 46% from Europe and 21% from Australia. EBITDA margin improved
by 12% compared to last fiscal due to higher sales realization, better cost absorption and rupee depreciation.
Plastic sheets could face headwinds in the near-term
The plastic sheets business (including PVC and PC sheets), which contributed ~7% of revenues during FY09, is levered to the
building and construction industry and derives most of its revenues from exports. With the US contributing 65% of JISL's PVC
sheet revenues, we expect a 12% annualised decline in this division's revenues over FY09-10E. This would also reduce the
segment's contribution to the company's revenues to 5-7% by FY10. However, the company is looking for other markets such
as Australia, New Zealand, etc. for its future growth. This, however, is likely to be time consuming and may not provide any
respite to the company in the short run. Moreover, the recent housing data that are coming out of the US is also showing
marginal growth () this might indicate that some stability may be returning in the US housing market, if that is the case
indeed, then it augers well for this division of the company going forward.
Performance Analysis - PVC Sheets

GROWTH GROWTH
Revenue 28.4 35.9 -21% 116.6 132.1 -12%
Contribution 6.3 7 -10% 20. 26.5 -22%
Contribution / tonne (in Rs.) 22066.55 17789.07 24% 17860 18358.16 -3%
Fixed Cost 1.7 2.2 -23% 4.8 6.3 -24%
Variable Cost 22.1 28.9 -24% 96 105.6 -9%
EBIDTA 4.7 4.8 -2% 15.8 20.4 -22%
EBIDTA / tonne 16462.35 12198.22 35% 13699 14063.04 -3%
As is evident from the above table, slow down in the US and European housing market has taken its toll on the business for
the company with sales volume and total revenue dropping by 20% and 12% respectively for FY09. Though in the last quarter
softening polymer prices and rupee depreciation resulted into margin improvements, higher average polymer price for the
whole year and volume de-growth resulted into overall contraction in margins for FY09.

INITIATING COVERAGE
01 JULY 2009
Performance Analysis - Polycarbonate Sheets

GROWTH GROWTH
Revenue 14.6 15.8 -8% 56.1 57.2 -2%
Contribution 1.9 1.2 58% 7.6 4.8 58%
Contribution / tonne (in Rs.) 27298.85 14051.52 94% 28107 15989.34 76%
Fixed Cost 0.4 0.5 -20% 1.3 1.3 0%
Variable Cost 12.7 14.6 -13% 48.5 52.4 -7%
EBIDTA 1.5 0.7 114% 6.3 3.6 75%
EBIDTA / tonne 21551.72 8196.721 163% 23299 11992.01 94%
Margin has improved mainly on account of higher sales realization in export market.
IFC FINANCING
· Equity IFC has infused $15 Mn in Equity shares of the company. The pricing of the allotment has been as per DIP
guidelines in the range of Rs. 350 Rs. 375. This would means that IFC would get 2 mn shares leading to a 2.69% stake for
IFC
· Debt IFC has already lent $30 Mn in the last 24 months and would lend $30 Mn further in 2 tranches over 8 year tenure.
The interest cost for these loans would be at the rate of 200 bp over Libor. This is considerably lower compared than the
existing rate of about libor+6% in the international market.
These funds would be used for strengthening of Balance Sheet and for expansion of existing business.
Another great advantage of having IFC as a share holder is that the company would not only receive expertise in water
related project execution, it would also be able to secure some of the orders for projects executed by World bank funding.
One such example would be the orders worth Rs. 77.8 crore that the company bagged for TN-IAMWARM project funded by
World Bank. Similar projects that are funded by World Bank abroad (for example in South Africa etc.,) could also come the
company's way going forward.
The company has plans to invest Rs. 190 crore in FY10 for capacity expansion. Of this about 65% of the total fund to be
utilized in expanding the MIS/SIS division and the rest of it will go in augmenting capacity of Piping and Agro Processing
Division.
FY06 FY07 FY08 FY09 FY10 FY11E FY12E

Capital Expenditure (Rs. Mn) 1128 2563 2000 3000 1900 2000 1500
Debt / Equity 3.1 2.8 1.5 1 0.8 0.7 0.6

INITIATING COVERAGE
01 JULY 2009
BUSINESS OVERVIEW AND LATEST DEVELOPMENTS
Micro-irrigation systems
Last year JISL acquired controlling stake of 69.75% in Switzerland-based Thomas Machines S. A. (TM). TM is a manufacturer
of specialist machines and equipments including drip irrigation lines, quality control and test equipment, automation
equipment, laser machine centers and laser products. TM also holds valuable IPRs and cutting edge technology in both
irrigation and composite pipes business. This acquisition will help JISL build its capabilities and help it gain foothold in new
generation drip lines including 'Precision Irrigation' products.
All these acquisitions have provided access to overseas markets and new technology that can be transferred and used
effectively in the domestic market. Anecdotal evidence suggests that JISL has gained traction in new markets including
Punjab, Haryana, Uttar Pradesh and Delhi, thanks to new products and technology. Furthermore, we believe the company
has been financially prudent in its pursuit of inorganic growth. The company paid 4-5x EBITDA for its acquisitions which
according to JISL are about half the multiple paid by John Deere for its acquisition of Plastro.
Plastic sheets: US housing slowdown could be a drag
JISL manufactures both poly-vinyl chloride (PVC) and polycarbonate (PC) sheets in India, with an installed capacity of
~37,000 mtpa. It is expected that the plastics segment's contribution to JISL's revenues will fall from the current ~7% to 5%
by FY10E. Almost all of its plastic sheets revenues are derived from exports. However, the company is trying to enter new
markets such as Australia, New Zealand etc. to enhance its geographical diversification and reduce its dependence on USA
for the revenue generation of this segment.
PVC sheets are used in signages, displays and increasingly in construction, in place of lumber. PVC sheets are beginning to
find use in windows, sidings and roofing. PC sheets are used in building, construction, advertising signs and displays. The PC
sheets business currently contributes ~2% (fallen from 5% for FY08) of revenues and we expect modest growth in this
business in the near term.

INITIATING COVERAGE
01 JULY 2009
PROVISIONS MADE IN THE BUDGET 2008-09
In the budget the allocation for micro-irrigation spends has been reduced from Rs. 5.5 bn to Rs5bn. However, that ignores
the 129% increase in allocation to other Plan programmes that directly benefit the company's micro-irrigation systems (MIS)
business. Strong growth in public sector expenditure on irrigation and infrastructure would support our expectation of 35%
CAGR in revenues.
Micro-irrigation: During 2008-09, we estimate Rs17.5bn public spending on micro-irrigation, under the following schemes.
Programme Estimated Estimated Details

In Rs. Crore Outlay Share of
(Rs. Bn) MIS Outlay
Micro Irrigation Outlay under AIBP 5 100% Subsidized MIS equipment to the extent of 50%
Command Area Development 6.8 30% State initiatives for development of integrated irrigation
projects(funded by world bank)
Rain-fed Area Development 3.5 20% Opportunity for makers of sprinklers, mainly through support
measures to grow more than one crop
National Food Security Mission 9.8 10% Opportunity for makers of sprinklers, mainly through
(Rs. 48.8 bn plan) programme target to improve productivity of crops
Rashtriaya Krishi Vikas Yojna 58.8 15% Permits states to draw on funds to offer a higher subsidy
(Rs 250 bn plan) (>10% provided currently) on MIS equipment sales
In the interim budget presented in February 09, Rs. 4 bn has been allocated for Micro irrigation Scheme and Rs. 11 bn
for national food security mission, to be spent in FY09-10.
JISL MoU with Israeli water management firm Mekorot to bring huge synergies JISL announced an MoU with Mekorot last
year, a leading Israel based water management company. The two companies are looking to jointly bid for water
management projects in India, which we believe represent a potential US$35bn opportunity. This tie-up should support
JISL's growth in the piping segment, in which we expect a revenue CAGR of 35% CAGR over FY07-10.
Water management presents a large business opportunity. The allocated spend on water supply and sanitation in the
Eleventh Five- Year Plan and proposed waste treatment and desalination projects offer a US$35bn business opportunity.
JISL indicated that project announcements in this space should begin over the next 3-12 months (notably from Maharashtra,
Gujarat, Tamil Nadu, Madhya Pradesh and Karnataka). Mekorot brings proven technical expertise. Mekorot (FY06 revenues:
US$700m revenues) manages more than 70% of all water supply in Israel. The company brings to the table a proven
technology that is also low-costan important competitive advantage in bidding for government projects. We believe the
two companies are likely to bid for projects on an equal-share basis (~50:50), with JISL offering business development and
execution capabilities and Mekorot, the requisite technology.
Water supply remains a focus area in the eleventh five-year plan. The Planning Commission proposes an allocated spend of
US$35bn during FY07-12 on water supply projects in urban and rural areas. Of the total budgeted spend, 51% would come
from the central government and the rest from the states. According to JISL, many state governments and municipalities
are currently evaluating water supply projects and are likely to invite bids and award projects over the next 12 months. We
believe Maharashtra, Gujarat, Tamil Nadu, Andhra Pradesh, Karnataka, Madhya Pradesh and Chattisgarh would be the
forerunners. Waste water treatment projects are witnessing momentum. JISL expects near-term opportunities to arise
from expansion plans for water treatment facilities in JNNURM (Jawaharlal Nehru National Urban Renewal mission) funded

INITIATING COVERAGE
01 JULY 2009
cities such as Mumbai, Pune and Bangalore. The company estimates the potential opportunity from these projects at
US$1.2bn.
Existing Capacity Proposed Capacity

Mumbai 1000 MLD 4500 MLD
Pune 160 MLD
Bangalore 1250 MLD
MoU offers JISL access to proven technology. JISL had earlier acquired (in May 2007) a majority stake in
Israel-based NaanDan Irrigation, which offered the company access to improved micro-irrigation technology and
strengthened its position as a leading player in the MIS business. Similarly, we believe that JISL's tie-up with Mekorot and
access to proven technology should enable the company to position itself as a strong player in the water management
business.
High Synergies Expected Out of JISL & Mekorot JV

Entity Capabilities
Mekorot Proven track record: Runs approx. 3000 installations, provides 70% of water supply in Israel,
Offers viable and cost effective technologies
JISL Is in a position to leverage its long standing relatioships with several government entitiies
MoU Company is likely to bid on equal share basis (50:50) for projects
Piping segment should benefit from implementation of water projects. JISL manufactures HDPE (hidensity polyethylene)
pipes, which should increasingly find use in water supply projects. Implementation of such turnkey water management
projects supports our revenue CAGR forecast of 35% during FY07-10.
Capacity Utilization and Expansion
Operating Capacities are about 70-80% of the Installed Capacities & Utilization is around 80-90% of that Capacity expansion
across major Business Unit under implementation. Plan to set-up regionalize manufacturing facilities for better market
servicing has been envisaged. New Capex to Turnover Ratio Expected to be 1:5 post FY'09.

INITIATING COVERAGE
01 JULY 2009
Financial Performance
JISL has been on a strong growth trajectory over the past few years and has delivered a 40% CAGR growth in consolidated
Revenues over FY2006-08. Also, acquisition of loss-making companies and successfully integrating these companies
resulted in PAT growing at a CAGR of 48% in the mentioned period. The company's OPMs have however, been fluctuating
primarily due to the integration of new businesses and increase in the raw material prices. JISL has nevertheless managed
to maintain its OPMs at 14-15%. Going forward, we expect that on account of better product mix and scale of economies the
operating margin would increase to 16%-17%.

INITIATING COVERAGE
01 JULY 2009

INITIATING COVERAGE
01 JULY 2009
FINANCIALS
PROFIT & LOSS A/C (CONSOLIDATED)

In Rs. Crore 2008 2009E 2010E 2011E 2012E
Sales 2216 2913 3776 4862 6332
Operating Income 344 477 631 823 1082

Other Income 40 30 30 30 30
Interest 133 128 132 139 143

Depreciation 57 90 110 121 129
PBT 194 290 419 593 841

Tax 54 58 84 119 168
PAT 140 232 335 474 673
Less : Pre-operative Loss 4
Less : Minority 3 4 6 9 12
PAT after MI 134 228 329 466 660
EPS (in Rs.) 30.8 43.5 61.6 87.4
BALANCE SHEET (CONSOLIDATED)

In Rs. Crore FY08 FY09E FY10E FY11E FY12E
Equity Share Capital 161 163 164 164 164
Share Warrants 36
Reserves 680 994 1320 1716 2279
Minority Interest 65 69 75 84 96
Net Worth 941 1226 1559 1964 2540
Borrowing 1275 1274 1309 1429 1429
Sources 2216 2500 2868 3393 3969
GFA 1381 1676 1891 2091 2241
less : dep 486 575 685 806 934
NFA 895 1101 1206 1285 1307
CWP 120 75 60 35 25
Investments 64 64 64 64 64
Current Assets 1770 2476 3209 4133 5383

- Inventory 809 1132 1467 1889 2460
- Debtors 656 917 1189 1531 1994
- Deferred tax assets/(liabilities) 5 7 10 12 16
- Loans & advances 300 420 544 700 912
Cash & Bank Balances 104 124 216 307 356
Current Liabilities 737 1340 1888 2431 3166

- Liabilities 675 1227 1729 2227 2900
- Provisions 62 113 159 204 266
USES 2216 2500 2868 3393 3969

INITIATING COVERAGE
01 JULY 2009
BASIC RATIOS
In Rs. FY08 FY09E FY10E FY11E FY12E
EPS 19.42 30.8 43.5 61.6 87.4
Growth in EPS % 44.1 58.4 41.4 41.5 41.8
Cash EPS 18 34.0 52.5 75.9 109.3
Book Value per share 108.16 165.7 206.2 259.8 335.9
Dividend per share 2.2 3.1 5.2 7.4 10.5
Profitability Ratios
FY 08 FY 09E FY 10E FY 11E FY 12E
ROE 16% 25% 27% 30% 34%
ROCE 23% 19% 22% 26% 29%
Turnover Ratios
Debtors (days of sales) 152 115 115 115 115
Inventory (days of sales) 133 142 142 142 142
Creditors (days of total expenditure) 132 184 201 201 202
NWC (days of sales) 170 142 128 128 128
Valuations
P/E 36.05 20.8 14.7 10.4 7.3
Cash P/E 27.95 18.8 12.2 8.4 5.9
P/BV 6.47 3.9 3.1 2.5 1.9
EV/Sales 2.7 2.0 1.6 1.2 0.9
EV/EBIDTA 15.4 11.6 9.0 7.0 5.3
Leverage Ratio
Debt/Equity 1.5 1.0 0.8 0.7 0.6
DISCLAIMER : The information in this report has been obtained from sources, which Eureka Research believes to be reliable, but
we do not hold ourselves responsible for its completeness in accuracy. All estimates and opinions in this report constitute our
judgement as of this date and are subject to change without notice. Eureka Research will not be responsible for the consequence
of reliance upon our opinion or statement contained herein or for any omission. Any feedback can be mailed to the following ID.
Analyst : Kinshuk Acharya

Email : kinshuk@eurekasecurities.com
Phone : 092315 49900 / 91-33-3918 0387
Registered Office : 7 Lyons Range, 2nd Floor, Room No. 1, Kolkata - 700001
Corporate Office : B3/4, Gillander House, 8 N S Road, 3rd Floor, Kolkata - 700001
Phone : 91-33-2210 7500 / 01 / 02, Fax: 91-33-2210 5184
e: helpdesk@eurekasecurities.com
Mumbai Office : 909 Raheja Chamber, 213 Nariman Point, Mumbai-400021
Phone : 91-22-2202 5941 / 5942
e: mumbai@eurekasecurities.com

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01 JULY, 2009 INITIATING COVERAGE

JAIN IRRIGATION SYSTEMS LTD.

• Leading player in Indian Micro Irrigation Space:

Revenue Contribution FY09 Revenue Contribution FY08

EUREKA RESEARCH 2 www.eurekasecurities.com

MICRO-IRRIGATION PRESENTS A HUGE OPPORTUNITY

TARGET CAPACITY DATE PARTICULARS INVESTMENT DETAILS

EUREKA RESEARCH 3 www.eurekasecurities.com

GROWTH DRIVERS IN THE MIS SEGMENT

EUREKA RESEARCH 4 www.eurekasecurities.com

SCOPE & OPPORTUNITIES OF MIS IN INDIA

Bharat Nirman targets to cover over 10MHa new

COMPONENTS UNDER XI PLAN TARGET

• 40% would be borne by the Central Government

• 10% would be borne by the State Government

• The rest would be borne by the beneficiary

EUREKA RESEARCH 5 www.eurekasecurities.com

MICRO IRRIGATION STATEW WISE SUBSIDY AVAILABILITY

EUREKA RESEARCH 6 www.eurekasecurities.com

CURRENT REVENUE HISTORICAL GROWTH EXPECTED GROWTH

CURRENT / EXPECTED INDUSTRY SIZE

REVENUE (YEARLY) AREA COVERED (AVERAGE)

EUREKA RESEARCH 7 www.eurekasecurities.com

(Area in Million Hectares)

PRICE & REALIZATION MECHANISM OF MIS FROM FARMERS

EUREKA RESEARCH 8 www.eurekasecurities.com

MICRO IRRIGATION SUBSIDY ADMINISTRATION & CASH-TO-CASH CYCLE

Farmers' Contribution 50%

Get Collected 5-10% Advance

Source: Company Presentation

EUREKA RESEARCH 9 www.eurekasecurities.com

IN-HOUSE R&D AND TECHNOLOGY TRANSFER SUPPORT GROWTH

States having micro irrigation projects in the process of implementation

Financial Performance Analysis-MIS Segment

Rs. Cr. Q4FY09 Q4FY08 YOY FY09 FY08 YOY

EUREKA RESEARCH 10 www.eurekasecurities.com

GROWTH DRIVER IN PIPING SEGMENT

The company expects a CAGR of 40% in this segment's revenues

EUREKA RESEARCH 11 www.eurekasecurities.com

Financial Performance Analysis-Pipe Segment

Performance Analysis - PVC Pipes

Performance Analysis - PVC Pipes

EUREKA RESEARCH 12 www.eurekasecurities.com

AGRO PROCESSING BUSINESS

Agro-processing: expect rapid growth to continue

EUREKA RESEARCH 13 www.eurekasecurities.com

Performance Analysis - Fruit Pulp & Puree

Performance Analysis - Dehydrated Onions / Veg

EUREKA RESEARCH 14 www.eurekasecurities.com

Plastic sheets could face headwinds in the near-term

Performance Analysis - PVC Sheets

EUREKA RESEARCH 15 www.eurekasecurities.com

Performance Analysis - Polycarbonate Sheets

FY06 FY07 FY08 FY09 FY10 FY11E FY12E

EUREKA RESEARCH 16 www.eurekasecurities.com

BUSINESS OVERVIEW AND LATEST DEVELOPMENTS

Plastic sheets: US housing slowdown could be a drag

EUREKA RESEARCH 17 www.eurekasecurities.com

PROVISIONS MADE IN THE BUDGET 2008-09

Programme Estimated Estimated Details

EUREKA RESEARCH 18 www.eurekasecurities.com

Existing Capacity Proposed Capacity