Jain Irrigation completes merger of international business with Temasek's Rivulis

Jain Irrigation merged its international irrigation business with Rivulis

Jain Irrigation Systems Limited (JISL) said on March 30 that it has completed the merger of its international irrigation business with Rivulis Pte Ltd., a part of Singapore's Temasek Group, to create a global irrigation and climate major. The deal will also considerably reduce the company's debt, according to a regulatory filing.

The merged entity will create a global Irrigation and Climate entity generating revenue worth USD 750 million. The corporate brand of the combined company will be "Rivulis – In alliance with Jain International, the regulatory filing added.

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Anil Jain, Managing Director of Jain Irrigation, said, "This strategic alliance with Rivulis and partnership with Temasek has created a global leader in micro irrigation, with a strong geographic footprint and a comprehensive range of offerings. The MergeCo will lead the mass adoption of modern irrigation solutions and digital farming by growers and business partners globally through its focus on accessibility, innovation, and sustainability. We are now better equipped than ever to provide sustainable solutions to the critical challenges facing our planet, including food security and climate change."

The stocks of Jain Irrigation Systems Limited were trading in the green, up 11.22 percent at Rs 32.82 on March 30, 2023, at 1:35 pm on BSE.

The merger is expected to reduce the consolidated net debt of Jain Irrigation by 44 percent, i.e. Rs 2,800 crore. By December 31, 2022, the company's debt was Rs 6,415 crore, and post-transaction debt would be down to Rs 3,615 crore, according to the filing.