Enevis Ltd (ASX:ENE) has signed an exclusive supply agreement with LumiGrow, the USA-based designer and manufacturer of smart grow light solutions.
The evergreen contract enables Enevis to leverage its existing skill base to enter the protected cropping markets and other emerging horticultural markets in Australia, New Zealand and parts of Asia.
Protected cropping in Australia and New Zealand alone is valued at $1.56 billion at the farm gate and accounts for about 30% of vegetables grown in Australia.
A “disruptive technology that will generate industry efficiencies”
Enevis chief executive officer Peter Jinks said: “LumiGrow’s smart LED grow lights can be installed in new facilities or retrofitted to existing glasshouses, making it an ideal tool for growers wanting to improve their crops and increase their productivity.
“LumiGrow lighting is a disruptive technology that will generate industry efficiencies and improve growers’ margins.
“The new agreement is a natural extension for Enevis in terms of its strategy to diversify and leverage new lighting technology and associated software, and the board is currently reviewing its options with respect to the working capital required to fund this opportunity.”
LumiGrow chief executive officer Jay Albere said: “We’re looking forward to a strong and productive relationship with Enevis which clearly has the experience, capability and vision to introduce the LumiGrow brand and technology to the market.”