Netafim India

active

Netafim is the world’s largest manufacturer of micro-irrigation system’s (MIS) components, with a 30% market share. From its origins in Israel in 1965, it has since grown to employ nearly 4,100 people in 36 countries, encompassing 29 subsidiaries and 17 manufacturing plants worldwide. Its system has been widely distributed and are being used for irrigating over ten million hectares of land and produced over 150 billion drippers used by over two million farmers.The company manufactures a wide variety of products for use in precision irrigation, either through extrusion or injection molding. It also produces or assembles other equipment to support the deployment of drip irrigation equipment (e.g., pumps, computer terminals, instrumentation) and provides expertise in the design, installation and use of such whole-irrigation solution packages.In 2018, IFC approved a US$70 long-term working capital facility to fund the cash needs in China, Turkey and Africa. The loans to Africa (US$40 million) and Turkey (US$15 million) have already been disbursed. The Company has been active during the Covid-19 crisis as agribusiness and food is a critical industry. However, its business in India which accounts for around 13% of sales, has been experiencing some payment delays from state governments as the COVID-19 crisis has strained state budgets. This investment therefore is a request by Netafim for IFC to expand the global working capital facility to India by US$75 million. The expanded IFC facility will help to alleviate working capital constraints and allow the Company to continue supporting Indian farmers.