Mahindra EPC is a Mahindra group company, popularly known as EPC Irrigation Limited and a pioneer of micro-irrigation in the country. Mahindra and Mahindra Ltd had acquired a majority stake in Mahindra EPC Irrigation Limited through a preferential issuance of equity shares and through this transaction, it enabled Mahindra and Mahindra to enter the micro-irrigation sector. Started with initial French Technology support, Mahindra EPC has developed the capability to design and develop various irrigation products of international standards, satisfying every need of Indian farmers. Mahindra EPC provides complete solution for agriculture with a focus on micro-irrigation, pumps and inter-related requirements of fertigation and agronomic support. Mahindra EPC has also launched a first-of-its-kind one stop shop for agro products and solutions in Buldhana district of Maharashtra, wherein farmers can find all agricultural input products and services under one roof. As the population of the world is growing and there is an urgency to grow more food, our farms are reaching their maximum yield point through traditional farming methods. Also for increased population, more water will be required for farming to grow more crops. As water availability is limited, we have to derive methods to optimise its use and at the same time, provide more yield to feed the increased population. Drip irrigation maximises water use efficiency and also its productivity. Other benefits of crop irrigation are better quality of crop produce, economised cost of production, soil health improvement and total food security. The micro irrigation system market is one of the fastest growing segments of the agricultural industry and this growth is complemented by the government’s encouragement for adoption of micro irrigation system for various crops. Government programmes like Pradhan Mantri Krishi Sinchai Yojana launched in 2015 with an outlay of Rs 50,000 crore are also a step in the right direction. The major objective of PMKSY is to achieve convergence of investments in irrigation at the field level, expand cultivable land under assured irrigation, improve on farm water use efficiency to reduce wastage of water, enhance the adoption of precision irrigation and other water saving technologies (more crop per drop). Analysts are quite bullish on the farm sector and irrigation stocks in particular. Mahindra EPC Irrigation stock has been hovering around the Rs 150 levels for some time and can be accumulated by portfolio investors for a 20% price upside in the next nine months’ time frame.
Rajiv Kapoor is a share broker, certified mutual fund expert and MDRT insurance agent.