Praxair India Ltd, the local arm of the $5 billion Praxair Inc of the US, expects to report sharply higher sales of around Rs 550 crore in fiscal 2001-02.
"Our business partners, such as the Jindal Steel plant and Kalyani Steels, have done exceedingly well and this has helped us beat the downturn," Indrajit Mookerjee, managing director of Praxair, said. In the previous fiscal, the company had reported sales of around Rs 400 crore.
New business models such as providing gas solutions through joint ventures in the case of the Jindal unit, and contracted on-site supply in the case of Haldia Petrochemicals Ltd have helped Praxair beat the slump, Mookerjee said. The company is now moving into complete business solutions of a type unprecedented in the domestic market, he said.
For example, Praxair sells cryogenic materials (liquefied gases) for quick freezing of food and marine products to exporters to help them conform to international food hygiene norms. "Besides selling our patented 'cryojet' technology, Praxair is helping the exporters identify buyers and develop exchange with them," he added.
Initially, Praxair proposes to charge exporters both the cost of the gas as well as a small fee for the matchmaking. "At a future date, they may be charged only for the service and the molecule will be free" Mookerjee said.
Such innovative sales strategies are expected to be the drivers of growth in the coming months. Sales growth in these businesses will be in the region of 25 per cent per annum.
Praxair's strength lies in the fact that it has critical patents in processes such as steel making, which are available to customers. "In steel making, the patented process named 'ADA' for methane and gas injection in steel melting yields savings of several dollars per tonne of steel, which is a major savings under a single head and particularly attractive in the current downturn", Mookerjee said.
Despite aggressive growth plans, Praxair does not envisage major investments in plants till 2003-end. The company has invested over Rs 1,100 crore in capacities, "including the world's largest gas plant at Bellary with capacity of 5000 tonne per day," Mookerjee pointed out.
With operations in more than 30 locations, "Praxair would rethink its position before bidding for gas plants on sale, such as those owned by the Steel Authority of India, even if they are in the market." he added.
Praxair had backed out of bidding in the first attempt made by SAIL to sell these plants. They were perceived to be overvalued and overstaffed, though Praxair had not given any reasons for its decision. The plants have since failed to find any buyer.
