Sunday, March 27, 2011

IFC and Jain Irrigation: Inclusive Business Models

Centered aroundagriculture, JISL’s business model makes almost a full circle through the valuechain. The company provides farmers with micro-irrigation systems (MIS), seeds,and other inputs to produce more and better crops and then purchases fruits andvegetables through its food processing division, which processes them and sellsthem to export and domestic markets. In this way, Jain’s inclusive businessreaches farmers as both consumers and producers.

 
RESULTS OF JAIN IRRIGATION SYSTEMS’INCLUSIVE BUSINESS MODEL
  • Ensured market and increased income by $300-400 peracre for onion farmers
  • Increase in net incomes by $100to $1,000 per acre due to efficiency gains
  • Estimated reduction of 500 million cubic meters ofwater per year as compared to floodirrigation
  • 35,000 tons of onions procured from 1,800contract farmers in 2008, of which 90% are small farmers

(To read the entire article on www.ifc.org, please click here)

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