RM Drip and Sprinklers Systems Limited has announced a strategic technology partnership marking its entry into IoT-based smart irrigation and digital agriculture automation starting March 2026. The leading micro-irrigation systems manufacturer disclosed this development under Regulation 30 of SEBI regulations on February 16, 2026, positioning the initiative as a key milestone in the company's transition toward technology-led growth and recurring revenue generation.

Market Opportunity and Growth Projections

The strategic move targets significant market opportunities in both domestic and global irrigation automation sectors. The company has identified substantial growth potential across multiple market segments.

Strategic Business Transformation

The initiative represents a fundamental shift in RM Drip's business model, expanding from traditional hardware-focused operations to integrated technology solutions. The company plans to develop new revenue streams encompassing hardware, mobile applications, analytics, and subscription services. This diversification strategy aims to enhance long-term revenue visibility, improve margin profiles, and increase business scalability.

The company expects this segment to contribute approximately 5% of revenue in FY27, with projected growth of 30% in this segment from FY27 onwards. The rollout will utilize RM Drip's existing infrastructure of 1,000+ dealer and retail touchpoints for nationwide distribution, supported by favorable government initiatives and subsidies driving faster farmer adoption.

Policy Alignment and Government Support

The smart irrigation automation entry aligns with India's irrigation modernization roadmap, which has evolved through distinct phases focusing on different technological priorities.

The partnership strategically aligns with national priorities including water conservation, renewable energy adoption, improving farmer income, and digital agriculture transformation. Government support for irrigation modernization has shifted focus from basic micro-irrigation adoption to precision and smart irrigation systems, positioning automation as a long-term structural growth trend.

Management Perspective and Company Background

Managing Director Atharva Nivrutti Kedar emphasized the company's commitment to strengthening capabilities through innovation and technology adoption. He highlighted that the smart irrigation automation entry reflects a proactive approach to industry trends and delivering future-ready agricultural solutions, aimed at enhancing customer value and supporting sustainable long-term growth.

RM Drip operates three fully automated manufacturing plants with combined capacity of approximately 22,000 metric tonnes per annum, strategically located in Nashik, Maharashtra. The company maintains a strong pan-India presence across 10+ states, supported by 1,000+ dealer and retail touchpoints and six company-owned outlets, with market leadership in Maharashtra, Karnataka, and Madhya Pradesh.

Financial Performance Overview

The company's recent financial performance demonstrates strong operational metrics across key parameters. In FY25, RM Drip reported comprehensive financial results reflecting its market position in India's micro-irrigation sector.

Kunal Haresh Mehta has filed a substantial acquisition disclosure under SEBI Regulation 29(2) regarding his reduced shareholding in R M Drip and Sprinklers Systems Limited. The disclosure reveals a significant divestment by Mehta and his Person Acting in Concert (PAC) Smita Mehta through open market transactions conducted between December 24, 2025, and February 2, 2026.

Transaction Details

The share sale transaction involved both Kunal Haresh Mehta and Smita Mehta reducing their positions in the irrigation systems company. Mehta sold 49,85,657 shares, representing a 2.00% reduction in his stake, while Smita Mehta disposed of 14,00,000 shares, equivalent to a 0.56% decrease in her holding.

Shareholding Pattern Changes

The transaction resulted in a notable shift in the shareholding pattern of both investors. Prior to the sale, Kunal Haresh Mehta held 3,78,00,000 shares (15.13%), while Smita Mehta owned 1,40,40,000 shares (5.62%), bringing their combined holding to 5,18,40,000 shares or 20.75% of the company's total share capital.

Company Information

R M Drip and Sprinklers Systems Limited maintains its listing on both the National Stock Exchange of India Limited and BSE Limited. The company's equity structure remains unchanged, with a total share capital of Rs. 24,98,00,000 divided into 24,98,00,000 equity shares of Re. 1 each. The disclosure confirms that Kunal Haresh Mehta does not belong to the promoter or promoter group of the company.

Regulatory Compliance

The disclosure was filed in accordance with SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, specifically under Regulation 29(2). The document was digitally signed by Kunal Haresh Mehta on February 3, 2026, from Mumbai, ensuring compliance with regulatory requirements for substantial shareholding changes. The transaction involved no encumbrances, voting rights other than equity shares, or convertible securities.