Naandan and Jain: Leave this World Better than You Found it

Abstract

India-based firm, Jain Irrigation Systems (Jain Irrigation), and its acquisition of NaanDan Irrigation Systems (NaanDan) offers an opportunity to explore supply chain sourcing and coordination as well as shupply chain management and global innovation. At the time of the case, Jain Irrigation's supply chain focus was mainly in India and the United States. While Jain Irrigation had deep knowledge of and production capabilities in the agriculture industry, Jain Irrigation believed that it would benefit from an Israel-based drip-irrigation company's technology and supply chain, so it arranged a meeting to talk about a joint venture. From its humble beginnings on a kibbutz in 1930, NaanDan had become a major manufacturer of micro irrigation with a global presence. NaanDan had manufacturing facilities in Israel, the United States, Chile, Brazil, Spain, and Australia. With its vast supply chain, NaanDan could get its product anywhere in the world. What the company leaders wanted was to create a competitive advantage through an investment in technology. In early 2007, NaanDan announced on its website that it was looking for a partner. The question was, should it sell the company to a large global firm such as John Deere, which had formed its own micro- and drip-irrigation business in 2006, seek private equity firms that had industry-specific knowledge and global networks, or pursue opportunities with competitors? Excerpt UVA-OM-1547 Rev. Apr. 3, 2017 NaanDan and Jain: Leave This World Better Than You Found It Farmers in the seventh-largest county in the world did a lot of talking about the weather—especially about rain or lack of it. The India-based firm Jain Irrigation Systems (Jain Irrigation), whose founder, Bhavarlal H. Jain, established the company with a mission to “leave this world better than you found it,” had been searching for an opportunity to help advance micro irrigation worldwide and gain competencies in that area. Thus far, Jain Irrigation's supply chain focus was mainly in India and the United States. While Jain Irrigation had deep knowledge of and production capabilities in the agriculture industry, the company believed that it would benefit from an Israeli-based drip-irrigation company's technology and supply chain, and NaanDan of Israel seemed like a good possibility, so it arranged a meeting to talk about a joint venture. From its humble beginnings on a kibbutz in 1930, NaanDan Irrigation Systems (NaanDan) had become a major manufacturer of micro irrigation with a global presence. NaanDan had manufacturing facilities in Israel, the United States, Chile, Brazil, Spain, and Australia. With its vast supply chain, NaanDan could get its product anywhere in the world. What the company leaders wanted was to create a competitive advantage through an investment in technology. In early 2007, NaanDan announced on its website that it was looking for a partner. The question was about the best way to enable the company to make this investment. Should it sell the company to a large global firm, such as John Deere, that had formed its own micro- and drip-irrigation business in 2006; seek private equity firms that had industry-specific knowledge and global networks (as was done by its biggest local competitor, Netafim); or pursue opportunities with other similar firms in different geographical locations? The Water Irrigation Industry . . .