Praj Industries: Imagine a company that’s not just about building, but about building a better tomorrow. They’re the engineers who can design a brewery that produces your crafted beer, but also ensure wastewater from the process. Meet Praj Industries the green guardian, a forward-thinking company which provides sustainable solutions. Praj Industries are a unique blend of innovators and environmental stewards. They understand that progress doesn’t have to come at the cost of the planet.
Whether it’s crafting high-purity water systems for industries or developing cutting edge bioenergy solutions, Praj is obsessed with creating a win-win scenario. Come let’s delve into the world of Praj industries, where sustainability isn’t an afterthought, it’s woven into the very fabric of every project they undertake.
Praj Industries – Company Overview
Praj Industries Ltd is a leading engineering and biotechnology company based in Pune, India. Founded in 1983 under the leadership of Dr. Pramod Chaudhari, Praj has grown into one of the most reputed and technologically advanced companies in the world. They are focused on providing sustainable solutions for bioenergy, critical process equipment, high purity water, breweries and industrial wastewater treatment.
With over 1000s of customer references across more than 100 countries on six continents, Praj has a well established global presence. Currently Praj industries has a market share of 10% of the total ethanol production globally. The company’s strengths lie in its TEMPO (Technology, Engineering, Manufacturing, Project Management and Operations) capabilities.
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Praj has a strong research and development team of over 90 scientists and it has filed over 400 patents, with 24 Indian patents and 60 international patents. The company’s strong technical capabilities, financial strength position and global footprint positioned it well to capitalize on growth opportunities in the rapidly evolving bioeconomy landscape.
Various Business Segments of Praj Industries
Bio-mobility/ Bioenergy segment
Praj industries core business focused on production of bioenergy and biofuel products. This included 1st generation ethanol from sugar (syrup/molasses) and starch (grains) feedstocks. Praj industries is one of the leading players in India’s ethanol blending program, which has setted up ethanol plants across the country.
The company is also developing 2nd generation ethanol technology using agricultural residues and lignocellulosic biomass. Praj has commissioned India’s first commercial 2G ethanol plant with IOCL and is working on more such projects with BPCL and HPCL. The Bio energy segment also covers Renewable Natural Gas (RNG) or Compressed Biogas (CBG) using feedstocks such as rice straw, industrial effluent and press mud.
Critical Process Equipment & Skids (CPES)
In this segment, the company specializes in engineering and manufacturing modular process packages and critical equipment for various industries like Fertilizers, Oil & Gas and other process sectors globally. Many leading customers increasingly accepted the company’s capability in modularization.
Sustainable Aviation Fuel (SAF)
To grasp the growing demand for sustainable aviation fuel, Praj has made strategic partnerships and developed technology for SAF production via the Alcohol to Jet pathway. The company has successfully produced and conducted India’s first commercial flight powered by indigenously produced SAF in collaboration with IOCL and AirAsia India.
Energy Transition and Climate Action (ETCA)
In order to address opportunities in energy transition, Praj industries has launched a new subsidiary called Praj GenX. This focuses on developing modular solutions for Blue and Green Hydrogen, Waste to energy, Carbon capture and Low carbon fuels. For this the company is setting up a new state of the art manufacturing facility.
Zero Liquid Discharge (ZLD) Solutions
The company offers a comprehensive range of solutions for recycling, industrial effluent treatment and zero liquid discharge systems across sectors like metals. Chemicals, power, fertilizers and food & beverages. Praj is also leveraging biotechnology to develop advanced solutions for treating high TDS and COD wastewater streams.
Brewery & Beverage
Praj under this segment provides customized plants, equipment and technology solutions to customers in the brewing and beverage industry. The company is building India’s largest Apple juice concentrate plant.
Praj HiPurity Systems (PHS) – Subsidiary
PHS is Praj’s wholly owned subsidiary which offers modular process systems, high purity water systems and fermentation-based solutions to biopharmaceutical, nutraceutical customers and sterile formulations. PHS is also entering into the semiconductor sector with its COLD WFI (Water to Injection) systems.
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Praj Industries Financial Performance
In Q4 FY24 revenue of the company stood at Rs 1,018.56 crore, up from Rs 1,003,98 crore in Q4 FY23. During FY 24 the revenue of the firm was 3,466.28 crore. As of March 2024 Praj Industries had an order backlog of Rs 3,855 crore, with 71% from the domestic market. The company has 700 crores as cash in hand till 31st of March 2024.
Praj Industries Future expectations and plans:
Praj Industries have successfully commissioned commercial-scale Compressed Biogas (CBG) plants using three different feedstocks including press mud, spent wash and rice straw. With help of this the company establishes their Rengas technology as a proven solution for complex agricultural feedstocks. The company is also working on establishing reliable performance on other feedstocks like napier grass, cotton stalk, poultry litter and municipal waste slurries.
Praj industries modularized solution offerings to Ethanol to Chemical Applications is gaining strong traction in international markets. They have received an order and they are currently building modules for one of the largest Blue Hydrogen projects in Europe. Praj has executed an engineering project for modularization of an ATJ (Alcohol-to-Jet) project in the USA. The company expects announcements on setting up Sustainable Aviation Fuel (SAF) capacities towards the end of 2024 as legislation around blending mandates takes shape.
Praj expects to receive 50% of its revenue from International markets by 2030, up from 20% currently. The company has established their first grain-based ethanol plant in Brazil. Praj also pursues opportunities in the USA for low carbon ethanol, driven by Inflation Reduction Act incentives. Praj is also commissioning a demonstration plant for Bioplastics (PLA) in Q2 FY25, and will invite interested customers to witness the process before commercialization.
Conclusion
Praj Industries have carved a unique niche in the sustainability landscape. Their expertise across biofuels, water treatment and critical process equipment have positioned them to be a key player in India’s green growth story. While navigating short term fluctuations, Praj’s focus on innovation and their established presence position them well to capitalize on the long term potential of the bioenergy market.
Their ability to adapt and thrive will be a crucial factor in shaping their future trajectory. What would you tell about the company’s growth and upcoming performance? Do let us know in the comments below.
Written by Pavunkumar V M
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