Praj buys US engg company for Rs 22 crore

Praj Industries, manufacturers of ethanol-making machinery has acquired 100 per cent stake in US-based CJ Schneider Engineering Company Inc (CJS) for a consideration of Rs 22.5 crore.

CJ Schneider has expertise and experience in providing detailed engineering services to the bio-fuel industry including ethanol plants. The company already has contracts on hand from leading ethanol producers for supply of various services.

Praj said the acquisition will complement the company's own business in the US as well benefit the customers there. The US customers will have a wider range of services to choose from. CJ Schneider employs highly experienced engineering professionals with a collective experience of over 350 man years, the communication added.

The acquisition was financed entirely from internal sources, it clarified.

The firm had entered the US markets a few months ago with contracts to supply technology and machinery for seven ethanol plants.

Praj has received Rs 170 crore of equity funding from Angel investor and ethanol evangelist Vinod Khosla, as well as Japan's Marubeni Corporation. The firm said the funds will be utilised for acquiring businesses in the US.