Date:20/04/2007 URL: http://www.thehindubusinessline.com/2007/04/20/stories/2007042003440200.htm

Back Praj entering into joint venture with Aker Kvaerner

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It may also acquire a Brazilian company this fiscal

Mumbai April 19 The Pune-based Praj Industries, a Rs 600-crore biotechnological solution provider, will enter into a 60:40 joint venture with Netherlands-based Aker Kvaerner Netherlands BV. It is also looking to acquire a Brazilian company to establish a foothold there.

Praj Industries is a supplier of cane molasses-based ethanol plants and offers technology for a wide range of feedstock, including cane juice and syrup, beet juice and starch-based raw materials such as grains and tubers.

An engineering and construction major, the Netherlands partner offers expertise from concept studies to design, engineering, project management, technology delivery, procurement and maintenance services.

Blending capabilities

Mr Pramod Chaudhari, Chairman, Praj Industries, said the Board had cleared Rs 40-crore investment for the 60:40 joint venture with Aker Kvaerner. The JV is intended to blend Kvaerner's execution capabilities and extensive European market knowledge with Praj Industries' technological expertise.

Referring to the acquisition, Mr Shashank Inamdar, Managing Director, said, "We are currently evaluating three to four companies and the acquisition will take place this fiscal," while declining to furnish more details.

On future plans, Mr Chaudhari said Praj was geared to enter the bio-diesel domain and equipped to offer in-house turnkey solutions, including technology, engineering, plant and machinery, and project management services. It was in the process of commissioning a bio-diesel plant in Maharashtra.

Another facility

The company is setting up an R&D facility about 20 km from its existing premises on the outskirts of Pune, with a capex of Rs 40 crore. Funds for the purpose will be met through internal accruals and preferential share allotment.

For the year ended March 31, 2007, Praj industries' total income more than doubled to Rs 616. 40 crore (Rs 270 crore), and PBT and PAT recording a threefold rise at Rs 110 crore ( Rs 32.38 crore) and Rs 86.52 crore (Rs 24.41 crore), respectively. Its Board on Wednesday announced a 1:1 bonus share.