Praj Inds in Rs 39 crore expansion drive

Praj Industries, manufacturer of ethanol machineries, is planning to invest Rs 39 crore for expanding its capacity by setting up two manufacturing bases and for ramping up its research and development programmes, chairman and MD Pramod Chaudhari said at the company's AGM on Tuesday.

"We have already added to our manufacturing capacity and we will further augment our execution strength by setting up two other manufacturing bases. We will be taking up a base near the port which will reduce the time it takes to reach the markets," Chaudhari said.

The new manufacturing bases would be set up in Navi Mumbai and in Gujarat, near a port, Chaudhari said.

The company will focus on research in biofuels and also on the latest technologies involved in production of alternative biofuels other than ethanol.

The order from Cillion Group in the US will strengthen the company's position in the global ethanol market, Chaudhari said.

"Interest in ethanol has been rising as evident from by the growing number of new generation investors who are pumping in more money in the industry. Also a large number of developers are drawn in, who bring experience from other industries like energy sector, for building large capacity plants," Chaudhari said.

Pointing out at the 15-20 per cent annual growth in the renewable energy markets and particularly ethanol, Chaudhari said the future of ethanol energy will depend upon the extensive availability of feedstocks and its cost effectiveness in different countries.

Chaudhari said the company's research on producing ethanol from sweet sorghum has helped in the possibility of finding newer sources of ethanol.

"Praj is committed and will definitely work towards bringing in newer technologies, options and methods for production and promotion of ethanol," he added.