Plastro Plasson Industries (India) Limited (PPIIL) has tied up with Punjab Agriculture Foods Parks Limited (PAFPL) for the supply and installation of its drip irrigation systems. Under this agreement PPIIL would supply irrigation systems, green houses and shade nets exclusively to PAFPL''s registered farmers, in the state of Punjab, for an initial period of 5 years.

PPIIL is a Finolex group joint venture with Israel''s Plastro Plasson International. PPIIL manufactures and markets high quality drip and sprinkler irrigation systems using Plastro International''s Israeli technology and also exports its products outside India.

Under the arrangement PPIIL would be providing demonstrations to potential farmer-customers who regularly touch base with PAFPL for updates on products, services and emerging technologies related to farming. The arrangement thus enables PPIIL to access a captive target customer base of farmers.

PAFPL members have tie-ups with companies for buy back arrangements of agricultural produce like vegetables, fruits, medicinal and other high value crops, and need to conform to certain output standards under contract-farming deals. For these farmers high-end drip irrigation systems are a likely area for investment. PAFPL, a subsidiary of the Punjab Agro Corporation, has a customer base of 5000 farmer members.

Given the long-term nature of the tie-up, PPIIL is appointing a full time agronomist who would be housed in office space provided by PAFPL. This office would serve as a canvassing point for PPIIL and its products. PAFPL, in turn, would earn additional revenue through royalty fees from PPIIL. PPIIL has recently received ISO 9001-2000 certification from International Standards Certification - Pty Ltd. Australia, an international certifying agency for their Quality Management Systems. PPIIL is currently involved with the Andhra Pradesh Micro-Irrigation Programme (APMIP).