Rajkot (Gujarat) [India], September 29: India’s continued push towards water-efficient agriculture is creating a significant opportunity for the micro-irrigation industry. Under the Government’s Per Drop More Crop (PDMC) scheme, more than 115 lakh hectares have been brought under micro-irrigation as of July 2026, covering around 8.11% of the country’s net sown area. While this reflects the steady adoption of efficient irrigation systems, the relatively low level of overall penetration also highlights the considerable headroom for further expansion. Captain Polyplast Limited
Captain Polyplast Limited, one of the leading manufacturer and exporter of micro-irrigation solutions, is well positioned to participate in this opportunity, with micro-irrigation continuing to remain at the core of its business. The company manufactures a comprehensive range of products including drip lines, sprinklers, micro-sprinklers, HDPE and PVC pipes, valves, connectors and other irrigation accessories, enabling it to address multiple components of a micro-irrigation system. Alongside this core business, the company has also expanded into solar EPC and polymer products, strengthening its presence across adjacent growth segments.
Government Support Is Expanding The Adoption Base
The PDMC scheme provides financial assistance of up to five hectares per beneficiary, with 55% assistance for small and marginal farmers and 45% for other farmers. The Government has released ₹8,123.24 crore under the scheme over the last three years, including ₹3,226.36 crore during FY2025-26. In FY2025-26 alone, 12.30 lakh farmers benefited from the programme, with women accounting for around 20% of beneficiaries.
Importantly, the Government has also introduced greater flexibility in the implementation of PDMC. States and Union Territories can now allocate funds beyond the earlier prescribed limits toward local water-storage and conservation measures such as farm ponds, diggis and water-harvesting systems. This is intended to improve the reliability of water availability and strengthen the effectiveness of micro-irrigation at the farm level.
The policy framework also allows farmers to receive assistance again for the same land after seven years, creating a potential replacement cycle as older irrigation systems reach the end of their operating life. Captain Polyplast Limited
A Large Opportunity For Captain Polyplast
Captain Polyplast has been operating in the micro-irrigation industry since 1997 and has established a presence across key agricultural markets. The company currently has manufacturing facilities at Shapar near Rajkot, Kurnool in Andhra Pradesh and Ahmedabad, supported by a distribution network of around 750 dealers across 16 states. Its presence includes several of the states identified by the Government as having the highest micro-irrigation coverage under PDMC, including Maharashtra, Karnataka, Andhra Pradesh, Tamil Nadu, Gujarat and Rajasthan.
The opportunity for the company extends beyond first-time installations. In states where micro-irrigation adoption is already relatively high, a growing installed base is creating a replacement opportunity, while lower-penetration regions offer scope for new system installations. The company has indicated that replacement demand in Maharashtra, Gujarat, Andhra Pradesh and Tamil Nadu is already in the range of 10–20% and could increase as the installed base expands.
This creates a two-layer growth opportunity for Captain Polyplast: new adoption driven by government-supported expansion and replacement demand from the existing installed base. Captain Polyplast Limited
Lower Taxation Further Improves Affordability
Demand conditions have also been supported by the reduction in GST on drip irrigation systems and sprinklers from 12% to 5% with effect from 22 September 2025. The lower tax rate reduces the cost burden on farmers and complements the subsidy support available under PDMC.
The Government’s own assessments point to the broader economic benefits of micro-irrigation, including 20–48% water savings, 20–38% improvement in crop yields and income gains of 10–69%, reinforcing the long-term case for adoption of efficient irrigation systems.
Mr. Ritesh Khichadia, Whole-time Director, Captain Polyplast Limited, said, “Per Drop More Crop has created a strong foundation for the expansion of micro-irrigation by making these systems more affordable and accessible to farmers. For a company like Captain Polyplast, this directly supports demand through our dealer network.
At the same time, the Government’s latest data shows that micro-irrigation currently covers only around 8% of India’s net sown area, which indicates that a significant opportunity remains ahead. We are expanding our dealer presence in northern and eastern markets, where penetration is still relatively low, while also seeing increasing replacement demand in established micro-irrigation markets.
With farmers becoming more aware of water efficiency and the policy environment continuing to support adoption, we believe the industry has a long runway for growth. Our focus remains on strengthening our distribution network, broadening our product offering and increasing our ability to serve both new installations and the replacement market.” Captain Polyplast Limited
Capacity And Business Readiness
Captain Polyplast’s manufacturing infrastructure has the capacity to support approximately ₹600 crore of micro-irrigation revenue, providing adequate headroom to cater to the expected expansion in industry demand. With capacity available to support higher volumes, the company’s focus is also shifting towards increasing the contribution of commercial and non-subsidy sales, creating an additional growth avenue beyond government-supported installations.
Micro-irrigation remains a key contributor to the company’s overall business, with consolidated total income of ₹419.75 crore in FY2026. For the quarter ended June 2026, consolidated total income stood at ₹81.66 crore, reflecting a 16.3% year-on-year growth. Captain Polyplast Limited
About Captain Polyplast Limited (CPL)
Captain Polyplast Limited (CPL) is one of the leading players in the micro-irrigation industry, specializing in the manufacturing and export of equipment for a diverse range of agricultural applications. Established in 1997, the Company leverages over 25 years of expertise and operates manufacturing facilities in Rajkot (Gujarat) and Kurnool (Andhra Pradesh). It has built a strong distribution network spanning 16 states across India and exports to markets in Africa, Latin America, and the Middle East.
In recent years, CPL has diversified into the fast-growing solar EPC segment, focusing on solar water pumping systems and rooftop solar solutions, supported by strong government initiatives such as the PM-KUSUM scheme. The Company has also partnered with Indian Oil Corporation Limited (IOCL) for polymer product marketing in Gujarat, further strengthening its business portfolio.
The recently operational Ahmedabad plant, spanning ~70,000 sq. ft., is expected to enhance manufacturing efficiency and profitability by enabling in-house production of critical components, thereby improving capacity utilization.
Looking ahead, CPL aims to increase the share of commercial sales, including non-subsidy micro-irrigation, PVC pipes, and exports, to optimize working capital. It also plans to expand its domestic and international footprint, while growth in the solar EPC vertical is expected to further diversify the revenue mix.
With a strong focus on strategic partnerships, operational excellence, and product quality, CPL is well-positioned to enhance its manufacturing capabilities and strengthen its leadership in the micro-irrigation and renewable energy sectors.
In FY26 (Consolidated), Captain Polyplast Limited reported Total Income of ₹ 419.75 Cr, EBITDA of ₹ 46.32 Cr, and a net profit of ₹ 27.78 Cr. Captain Polyplast Limited
Sources:
- Press Information Bureau (PIB) – Water-Smart Farming with Per Drop More Crop – 29 Aug 2026
PIB Source - Press Information Bureau (PIB) – PMKSY: A Decade of Irrigation-Led Agricultural Transformation – 30 Jun 2026 PIB Source
- Press Information Bureau / Ministry of Agriculture & Farmers Welfare – Crop Diversification and Micro Irrigation – 4 Aug 2026 PIB Source
- Business Standard — Why monsoon-dependent India still struggles to scale micro irrigation – 25 Apr 2026 Business Standard Source
- The Economic Times Why micro-irrigation needs more than subsidies – 9 Jul 2026 Economic Times Source
- Mint — Per Drop More Crop Yojana: subsidy and micro-irrigation benefits – 26 Jun 2026 Mint Source Captain Polyplast Limited
Disclaimer: Certain statements in this document that are not historical facts are forward looking statements. Such forward-looking statements are subject to certain risks and uncertainties like government actions, local, political or economic developments, technological risks, and many other factors that could cause actual results to differ materially from those contemplated by the relevant forward-looking statements. The Company will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances. Captain Polyplast Limited
