Rivulis – Eurodrip: The hub of Greece and the strategy after the acquisition by Temasec

By George Lampiris

The acquisition by the Temasek group with a total value under management of a portfolio of 283 billion euros, which was formally completed in 2020, brings strategic and substantial differences for the micro-irrigation systems company, Rivulis – Eurodrip, something he said speaking to journalists. Vassilis Kykrilis, CEO of the business unit for Eastern Europe, the Middle East and Central Asia. The Temasek group essentially manages the wealth of the state of Singapore and based on the data that now emerges, the investment planning for Rivulis – Eurodrip, of which Greece is an important administrative and organizational pillar, is set on a long-term basis of fifteen years and twenty years. . It is noted that the Temasek group maintains, among other things, a minority stake in Bayer, but also a shareholding in Singapore Airlines, among others.

Investments in warehouses and a new production line in Inofyta

It should be noted that the company maintains a productive and administrative headquarters in Inofyta. The focus of the investment strategy at the Inofyta plant is both the increase of storage capacity, as well as the installation of a new production line – so far there is a corresponding one only in Israel -, which will offer the possibility of verticalization of the Greek factory. Given that Oinofyta and Israel are the two units of Rivulis – Eurodrip, which produces drippers with the installation of the new line in our country, the company will be able to produce self-adjusting drippers, which regardless of the inclination they receive, can have an uninterrupted water supply. A key element of self-adjusting drippers is a special membrane, which determines the quality and performance of each dripper. This film is produced exclusively in Israel and it is planned to start its production in Greece, probably within 2022.

The strategic goal is to transform it into a provider of know-how and modern agricultural practices

The strategic directions of the company are the adoption of drip irrigation as well as the evolution of the product portfolio that it already has. A key pillar is the development of digital solutions and applications that offer solutions to the problems and requirements of the agricultural sector by providing integrated irrigation systems. The aim is to transform from a producer of pipes, to a provider of know-how and modern agricultural practices.

20% of the production coming from the factory of Inofyta is intended for the Greek market, while the remaining 80% is directed abroad. The factory specializes in the production of dripping pipes as well as integrated irrigation systems. It is characteristic that the production unit of Inofyta is the center of the business unit that manages a geographical area that includes 43 countries of the world from Russia to Saudi Arabia and from Croatia to Pakistan headed by Mr. Kirillis. The company supplies directly to the sales sector through four factories (Greece, Russia, Turkey, Egypt) that it maintains in this business unit, whose headquarters are located in Inofita. It is noted that part of the activity of Inofyta is the research and development department, while the third pillar is that of the production of injectors (nozzles), with Greece being the second factory together with that of Israel, which supply the remaining 16 factories of the group per the world.

At + 25% growth in 2021

Within 2020, Rivulis – Eurodrip managed to maintain its size in the Greek market, while in 2021 it records sales growth of 25%. A key factor of growth was the company’s participation in turn key projects of large acreage abroad, in which it undertakes the universal design and installation of integrated irrigation systems, while also providing consulting services to investors in the agricultural sector, on how they can manage effectively their production.

Another factor that increases sales this year, is the company’s ability to sell products at higher prices, which at the same time has not affected gross profit, while Ebitda profitability has improved. Such value-added products are the global patent pipe, which has the ability to repel bugs and sharply that destroy the irrigation system and is called Rivulis Defend. Another product on which the company bases part of its development is a system that prevents the entry of roots into the dripper during underground irrigation, operating by adding copper elements.

The Rivulis Eurodrip group is the second largest player in the drip irrigation sector with sales for this year estimated to exceed $ 400 million worldwide. The company in Greece is estimated to record a turnover of 45 million euros, with an estimated growth of 25%. It is noted that the turnover in our country in 2019 amounted to 39.37 million euros, while in 2020 it moved to similar levels.