Company until 2014 was a manufacturer of sprinklers on a job work basis. In 2015 it received funding from local investors so it was able to expand manufacturing capacity. At the same time Mr Dash who has good experience in flat line drip irrigation system joined the company and also invested in the company. These two rounds of funding enabled the company to expand capacities and grow sales. Don’t look at the % sales growth as it is coming off a low base. In absolute terms growth is 14 Cr with is tiny for a large player like Jain Irrigation. All of this information is available in IPO prospectus.
Growing capacities is the main reason behind past and expected sales growth. Current utilization is only 25%. Often, price is not the only criteria buyers use to buy a production. Distribution, service, credit terms, technical assistance etc are also important aspects. Price is important if you are selling a commodity like cement or yarn in a market to a wholesaler. Here branded products are sold to distributors who sells directly to end user.