Rotoplas Expands Water Solutions Portfolio

Rotoplas, through its subsidiary rieggo, a water solutions company focused on agricultural needs, has acquired a 51% stake in Vanguard Irrigation (IrriVan), a Mexican firm specialized in advanced irrigation systems for agriculture. According to Rotoplas, this acquisition aims to strengthen agricultural projects in Mexico.  

With agriculture accounting for 70% of water consumption, the urgency to modernize this sector has never been more pressing, particularly given that water usage in agriculture is significantly more efficient in developed countries. Rotoplas positions itself not only as a key player in improving water management but also as a crucial driver in the agricultural modernization of critical regions, emphasized Eduardo Carrilo, CEO, rieggo.

Jasiel Palomo, CEO, IrriVan, said the alliance with Rotoplas signifies a milestone propelling the company toward growth and success. "With the technical expertise of our team and Rotoplas' support, we are poised to expand our market presence and continue delivering cutting-edge solutions and exceptional service to our clients. I am committed to leading IrriVan through this exciting chapter, ensuring we achieve our goals together," stated Palomo.

Carrilo highlighted that IrriVan’s acquisition will strengthen rieggo’s market position and accelerate the company’s growth strategy. "This collaboration enables us to merge the strengths of both companies, enhancing water management efficiency and agricultural yield. I am excited to work together and leverage our synergies to provide comprehensive solutions that meet our clients' needs and address the global challenge of sustainable water use," he remarked. 

This investment is part of the Rotoplas’ Programmatic M&A work plan, which aims to enhance the firm’s market penetration and scale by creating a portfolio of complementary services and products. In November 2023, under the same strategy, rieggo announced the acquisition of HiTech Irrigation of Mexico, a specialized brand in irrigation services and systems. Recent acquisitions also include a treatment plant in Puebla through Rotoplas’ water recycling and treatment division, Rotoplas Water Services (RSA), in February, as well as the acquisition of the remaining 20% of the shares of the Mexican firm Soluciones y Tratamiento Ecológico (Sytesa), in March.

Grupo Rotoplas underscored that the expansion of its operations reaffirms its commitment to sustainability and the preservation of the planet's natural resources, as the synergy of knowledge will allow for a more effective approach to the water challenges facing modern agriculture.

Currently, Mexico faces the critical challenge of water stress across more than 60% of its territory. Significant reductions in corn, wheat, and beans production have been warned by GCMA, leading to increased imports and significant price hikes for essential food items, as reported by MBN.

To address this issue, the federal government has launched different initiatives to improve water distribution in irrigation. In this context, SADER announced the development of a digital platform last December, allowing real-time comprehensive monitoring of crop operations and up to 40% water savings. The Irrimodel platform aims to solve the main problems faced by irrigation areas, such as high competition for water, recurrent and prolonged droughts, and intensification of climatic variability.

So far, the platform has been implemented in northern Sinaloa, achieving savings of up to 1,600m3/ha in corn and sorghum fields and at least 1,000m3/ha in potato and bean crops. These results were obtained in drought scenarios, without reducing crop yields. Based on these results, producers in southern Sonora have requested the adoption of Irrimodel in wheat crops, seeking to improve irrigation management under normal water availability conditions and drought.