What is wrong with Jain Irrigation?
Rating firms had downgraded the company due to delay in servicing debt. Last year, S&P had downgraded it to ‘D’ (default grade) for missing interest payments due on February 1, 2020. Similarly, Care Ratings had downgraded Jain Irrigation to ‘D’ in 2019 due to a delay in servicing debt.
Who is the owner of Jain Irrigation?
Bhavarlal Jain
Mr. Ashok Jain is the Chairman of Jain Irrigation Systems Limited and a well-known entrepreneur working for agriculture for the past over 4 decades. He is 56 years old and is the eldest son of Late Dr. Bhavarlal Jain, the Founder Chairman.
Why did Jain Irrigation fail?
The trouble for Jain Irrigation began after it reportedly failed to secure payments from the government despite executing irrigation projects based on government subsidies. The debt pile, liquidity issues and delay in servicing debt prompted rating firms to downgrade the company.
What is the business of Jain Irrigation?
Jain Irrigation Systems or Jains, is a multinational conglomerate based in the city of Jalgaon, India….Jain Irrigation Systems.
| The Jains Plastic Park in Jalgaon, India | |
|---|---|
| Industry | Agriculture, Irrigation, pipe, Food processing, Solar energy |
| Founded | 1986 |
| Founder | Bhavarlal Jain |
| Headquarters | Jalgaon, India |
Can Jain Irrigation emerge from this debt trap?
“We see Jain Irrigation as being caught in a debt trap, as working capital and interest payments have been eating into operating cash flows, leaving negligible amounts for debt repayments,” wrote Amit Murarka, an analyst with Deutsche Bank Research, after JISL announced quarterly results in May.
Will Jain Irrigation survive?
Some good news is expected in Jain Irrigation, resolution plan has been approved after discussion with the lenders and debt restructuring will happen in the company. Sustainable debt for the company will happen at 9% and unsustainable debt will happen at 0% for a period of 8 years.
Why are Jain Irrigation shares rising?
The Jalgaon, Maharashtra-based company attributed the rise in debt to delays in receiving payments from the government in its micro-irrigation business. Some assembly polls and the general elections were the reasons the payments have not been cleared, it said.
How do I become a Jain Irrigation dealer?
- [email protected].
- 1800 599 5000.
Who are the Jain Irrigation Systems Ltd?
Jain Irrigation Systems Ltd is a diversified entity with turnover in excess of $ 1.2 Billion. We have a global presence with 33 manufacturing bases spread over four continents. Our products are supplied to 126+ countries with able assistance from 11,000+ dealers and distributors worldwide.
Why choose justjain irrigation?
Jain offers comprehensive irrigation products and services, international reach, local points of contact, and competitive pricing; a combination that makes us a leader in the irrigation industry.
Where can I find the Jain product catalog?
The JAIN Product Catalog is now available online in digital form and in print upon request. As we are conscious of the need to refer to a printed catalog, we do want to ask customers to consider the environment and use our digital catalog.