INDIA, Oct. 11, 2015 — Rivulis Irrigation Ltd. (Rivulis Irrigation) announced that it has consummated a definitive agreement with Dhanna Engineering Private Limited (DEL) – a company of the Abhay Firodia family of India – in which DEL will acquire from the FIMI Opportunity Funds (FIMI) a 20% equity stake in Rivulis Irrigation – Israel, and from Rivulis Irrigation a 49% stake in its Indian subsidiary. FIMI retains 80% of the equity in the global operations of Rivulis Irrigation.
“The current footprint of Rivulis Irrigation in India, combined with our solid industrial experience and vast market presence, will enable fast growth in that market and build value for the Indian farm economy. We are thrilled to be part of this exciting endeavor,” said Sudhir Mehta, member of the Firodia family, and newly appointed Director of Rivulis Irrigation.
Mr. Mehta went on to say, “After a long selection process and an extensive due diligence effort, we are convinced that we have found the right partner in promoting the drip irrigation revolution forward on the global scene. Rivulis Irrigation is uniquely positioned in the global market. Rivulis Irrigation, under the current owners, and with its current management, is very fast moving and fully customer driven. With our double investment concept, we will be able to influence the course of action on a global level, while playing a critical role in the development of the company in India, which comprises the largest irrigation market worldwide.”
Richard Klapholz, CEO of Rivulis Irrigation, added: “The vote of confidence received from the Abhay Firodia family is a huge boost to our company, especially at this stage of our growth process. The Firodia family brings several decades of relevant experience in India, which we have all intention to leverage in order to become a major irrigation player in India. We have already outlined a 5 year business plan for our activities in India, and now, with a jointly agreed upon injection of funds into our Indian operations, we have the full ability to execute on our growth strategy. I am very excited about this great opportunity.”
About the Abhay Firodia family: The Abhay Firodia family is a well-known and highly respected family in India, holding controlling interests in Force Motors Limited (Force Motors). Force Motors has been in operation for the last 60 years, and is considered a pioneer of the automobile industry in India. Having, in its past, manufactured well known Indian brands like the Tempo 3-Wheeler Autorickshaws and the Matador, Force Motors currently markets the iconic Traveller vehicle, the leading van in India, as well as the Balwan and Orchard range of agricultural tractors. The Abhay Firodia Group, with its 10,000 employees and 10 plants in India has remained focused on producing utilitarian cost effective products, especially made to suit the Indian economy and the rural environment.
About Rivulis Irrigation: Rivulis Irrigation is one of the leading drip and micro irrigation manufacturers worldwide. With 1,000 employees and 11 factories in 20 countries, and a global distribution network of well over 1,000 dealers and OEM partners, Rivulis Irrigation is a major player impacting the growing move of agriculture to drip irrigation. Rivulis Irrigation, was established in June 2014, when FIMI acquired the former John Deere Water division from John Deere. The Fund, together with the new management of the company and its employees, succeeded in turning the company around in an exceptionally short time, effectively leveraging the 5 decade long expertise of the original founding companies (Plastro, T-Systems and Roberts Irrigation).”
If you would like more information about this topic, please e-mail Brian Jewel.