Jain Irrigation Systems Ltd will set up two mega projects covering agro-based and related products in Jalgaon in Maharashtra, involving an estimated investment of Rs550 crore.
The company has signed a memorandum of understanding with the Maharashtra government comprising two mega projects with an estimated investment of Rs550 crore , in the industrially backward district of Jalgaon, managing director Anil Jain said.
The company also signed an agreement with the state government for these projects, which include production of micro-irrigation equipment, fruit and vegetable processing, and tissue culture.
"This is basically an expansion-cum-modernisation project," Jain said, adding, "We are getting some tax benefits from the Maharashtra government. It's a customised agreement where we will avail different benefits at different times."
The company has already raised funds for the project through debt and internal accruals in the proportion of 40:70, he said, without revealing details of the agreement.
"We raised funds overseas when the rates were still reasonable," he said.
The company, which is operating in a 200-acre land, is looking to buy 500 acres more in Jalgaon," he said.
Jain has projected annual revenues from the project of about Rs2,000 crore from 2010-11.
Jain is also planning to set up a food processing-cum-irrigation systems in Uttarakhand by next year.
"We are working out plans for this project. Though nothing has yet been finalised, we plan to start work on it by next year," Jain said.
"We are aiming to have a pan-India presence. We are also increasing capacities in the south - Andhra Pradesh, Tamil Nadu - for irrigation systems and pipes, he said.