Praj will set up unit in Kandla SEZ

Ethanol plant and machinery major Praj Industries has plans to set up a new unit in the Kandla Special Economic Zone.

The unit, being set up at a capital outlay of Rs 15 crore, will be operational by March 2007, Praj chairman Pramod Chaudhari told Business Standard.

The facility will be important for the company as it can help ship the big size machinery which Praj started manufacturing last year, Chaudhari said.

The company has made major progress since its business consolidation process was completed last year and the capacities have almost trebled in one year's time. Praj recently completed the capacity expansion at its second Pune unit and a new unit it set up in Navi Mumbai near the Jawaharlal Nehru Port.

"We are seeing a major acceleration in the performance, as envisaged. The half-year turnover is almost equivalent to last whole year's level. Going by the orders on hand and in the pipeline, we are targeting to exceed annual targeted sales of $100 million (Rs 450 crore)," Chaudhari said.

He added that the company had pending orders worth about Rs 600 crore as at the end of September.

Praj's turnover in the second quarter of 2006-07 was 158 per cent higher, at Rs 148.76 crore, compared with Rs 57.68 crore for the same quarter last year.

Profit before tax grew 300 per cent from Rs 6.71 crore last year to Rs 22.61 crore for the current year. Profit after tax more than trebled at Rs 17.49 crore against Rs 4.66 crore for the second quarter last year.

The company's turnover on a half-yearly basis stood at Rs 229.97 crore, which is close to Rs 270 crore that the company reached for the full year in 2005-06. On a half-yearly basis, the jump is 94 per cent. The company has declared an interim dividend of 45 per cent (90 paise per share).

Chaudhari said the company saw a major resurgence in the demand for ethanol in the Indian market and a sustained demand in the world markets, mainly the US and UK.

In the brewery plants segment too, Praj has been making rapid progress. The company has contracted orders from leading breweries in India including UB and SAB Miller.

With a dedicated workshop for brewery equipment, execution of these projects were under way, he said.