Praj ind poster good performance for the quarter and FY19. I have expected bottom line to be better. On standalone basis things looks much better with PBT margins of 12.6% for the quarter and 8.6% for FY.
Order backlog of 928 Cr of which 78% from bio energy division. Total order intake for fy19 is 1,394 Cr vs 1040. Oder intake for Q4 is 306 Cr vs 375 in Q4FY18.
We may get more insights from concall.
Important points from Q4 concall:
Domestic bio-energy: for 2018-19 2.37 billions litres of ethanol procurement was finalised for blending( up by 58%).
1G Plants: no of application under interest subvention scheme have increased to 268. These things will take time in getting govt approvals, environmental clearance… etc. Till now only 10-12 application have been finalized.
Witnessing increased inquiries and many projects under advanced stages of finalization.
⅔ market share is with Praj.
Introduced new technology for ethanol plants which helps in water conservation by 75%.
New technology “PROFIIT” zero liquid discharge solution for molasses based ethanol plants.
2G plants: 4 projects under different stages of execution. Got orders for critical equipment with IOCL. For BPCL And HPCL engineering and technology licensing order confirmed. Opportunity of approximately 150 cr per project.
European union with RED II initiative its mandatory to use advanced biofuels for blending. We are leaders in this technology and many 2G project for EU clients under discussion.
2G is globally new technology.Initial support from Govt policy to become competitive.
1800 Cr by Govt for 12 projects of 2G. Additional 150 cr for advanced biofuels demonstration projects.
CBG plants: By the March-19 end, OMCs have received 200 application for expression of interest to set up CBG plant. Govt plan is to have 5000 plants by 2022. Various feedstocks like press mud from sugar mills,rice and wheat straw can be used. Sugar mills have ready feedstock available.
Typical plant size: 50 tons to 200 tons of biomass input/day with economical collection to feedstock from 25 km radius.
Roughly fertiliser output will be equal to 80% of input. Gas yield based on feedstock ranges from 5 tons to 20 tons of gas output /day depending on feedstock.
Biogas and CBG production/constitution is different.No CBG plant as of now. We have done around 50 biogas plants. Few competitors also present.
Healthy pipeline is under buildup. In next 2-3 yrs it will be significant part of our business.
Isobutanol for jet fuel: tie up with Gevo USA.Too early to talk about opportunity size. Not mandatory to use it as of now. Energy content of isobutane per molecule is higher than ethanol.
Gross margins: Q4 was low due to certain orders with low margins. For next FY gross margin will improve by 2-2.5%.
Praj industries CEO interacting with investors about the company business.
Above link shared by @harshrulz is very useful where CEO Shishir joshipur shares many insights into company business plans and how he is planning to increase further revenue opportunity for Praj in setting up 1G plants. He also highlights about changes he has made in other business verticals like eng segments,brewery plants. Feedback I got from some senior investors about CEO is good and he has done well with previous companies he has worked. Attached my presentation on Praj ind which I did during vp meet Goa edit praj ppt.pptx (1018.6 KB)
Another interesting video how the Praj’s machines produce Ethanol :
Praj Industries Q2FY20 Concall Summary
Business Updates
Participants
Stewart & Mackertich
Sundaram Mutual Fund
Valuequest
Philip Capital
Kotak Securities
Banyan Tree
ICICI Direct
QnA
" Ground ZERO "
During election time i was deputed to work on watch in one of the distillery in PUNJAB. They have ethanol plant installed. but not running .they are having bottling line and they were botteling the PML (Desi Daru Mota Santra ).They are producing the ENA . when i asked bhai Ye plant kaun nahi chala raha . The answer i got from them the fixed price of ENA is around 54-56 while the selling price of ethanol is around 44-46 .so runing the plant we wont make any profit .he told me most of the Distilleries has excess capacities but not running the ethanol plant as it is not commercially feasible .they have additional place to install second unit but they said they will postpone for next two to three years .
in my opinion unless the govt has some subsidies given to the plants or the minimum assured purchased price announced the near term growth of this sector will hamper . The capacities are overstretched but they are now Burdon for the owners . so the cash conversion cycle will be affected .
— The plant is from Praj industries
regards
Disc: in watch list but not invested .This is not recommendation to buy sell or hold
If I remember correctly, Govt have plans(and instructions) to increase concentration of ethanol upto 30% per litre of petrol by 2022
By
Utilization of excess sugarcane for ethanol production to improve viability of sugar industry; Ethanol is a green fuel and its blending with petrol also saves foreign exchange
Government has taken various measures to improve viability of sugar industry, thereby enabling sugar mills to make timely payment of cane dues of farmers. Going forward, diversion of excess sugarcane and sugar is the long term solution for addressing the problem of excess stock and improving viability of sugar industry. Ethanol is a green fuel & its blending with petrol also saves the country’s foreign exchange.
A meeting co-chaired by Secretary (Food & Public Distribution), Secretary (MoPNG) and Secretary (DFS) was held with the representatives of leading banks and Oil Marketing Companies, Cane Commissioners of major sugar producing States and sugar industry associations on 21st August 2020, in which ways and means to increase the supply of ethanol to OMCs was discussed to achieve the objective of the Government to increase blending percentage in petrol. It was agreed that as producers of ethanol (sugar mills), buyers of ethanol (OMCs) and the lenders (banks) are willing to enter into a tri-partite agreement (TPA) about producing, buying and paying for the ethanol through an escrow account etc., the banks can consider giving loans to sugar mills even with weak balance sheets. This would facilitate mills to avail loans from banks to set up new distilleries or to expand their existing distilleries, thereby enhancing the overall distillation capacity in the country and thus would help in achieving the blending target under Ethanol Blended with Petrol programme. It was assured by the States and industry that efforts would be made to increase supply of ethanol in the current as well as in ensuing ethanol supply years.
During last ethanol supply year 2018-19 about 189 crore ltrs of ethanol was supplied by sugar mills and grain based distilleries to OMCs thereby achieving 5% blending target and in current ethanol supply year 2019-20, efforts are being made to supply 190-200 crore ltrs of ethanol for blending with petrol to achieve 5.6% blending. The Government has 10% blending target for mixing ethanol with petrol by 2022 & 20% blending target by 2030. To achieve the objective of the Government, Department of Food & Public Distribution is regularly holding meetings with Department of Financial Services; Ministry of Petroleum & Natural Gas; Ministry of Environment, Forest & Climate Change; State Governments; representatives from Sugar Industry and Banks.
With a view to achieving blending targets, Government is encouraging sugar mills and molasses based standalone distilleries to enhance their ethanol distillation capacity. Soft loans of about Rs. 18600 crores are being extended through banks to 362 projects of 600 crore litre capacity for enhancement and augmentation of ethanol production capacity, for which an interest subvention of about Rs.4045 crore for five years is being borne by the Government. So far loans have been sanctioned to 64 project proponents & completion of these projects would increase ethanol distillation capacity by 165 crore ltrs in another two years. Thus the ethanol distillation capacity in the country would increase from 426 crore ltrs per annum to about 590 crore ltrs per annum by 2022.
To encourage sugar mills to divert excess sugarcane to produce ethanol for blending with petrol, the Government has allowed production of ethanol from B-Heavy Molasses, sugarcane juice, sugar syrup and sugar; and has also fixed the remunerative ex-mill price of ethanol derived from these feed-stocks. The State-wise targets for ethanol manufacture have also been fixed. Sugar mills / distilleries have been advised to utilize at least 85 % of their existing installed capacity to produce ethanol. Sugar mills having distillation capacity have been advised to divert B-heavy molasses and sugar syrup for producing ethanol to utilize their capacity to maximum extent; and those sugar mills which do not have distillation capacity should produce B-Heavy molasses and should tie up with distilleries which can produce ethanol from B-Heavy molasses. States have also been requested to ensure smooth movement of molasses & ethanol.
Disclosure : Invested 1 month back and forms 10% of my portfolio.
The Irony with Praj Industries is that it is a very good Company(Good and respectable Promoters, excellent corporate governance, excellent technical skill, reputable brand name in both domestic and international market, market leader in its segment etc) but has tested the patience of investors like any thing. It reminds me of story of Sher aaya , sher aaya in my Childhood. I hope that it is high time now and the lion should come.
All positives are there:
All the above positive did not had any effect and were of no use for Sugar Companies why???
The reason was that the Balance sheet of almost all sugar Companies were not fit for getting additional line of Credit from Bank for setting up Ethanol Plant. All the above positives could had been materialized only if the Sugar Companies would have been able to made CAPEX by availing Loans from Bank.
In my opinion the Government has now focused on the Core issue and have advised the Bankers to lend even if the Balance sheet is weak. The mitigation for lending on weak balance sheet of Sugar Company is that the Banks, Oil Marketting Companies(OMC) and Sugar Company will enter into a Tripartite Agreement. Under the agreement all the Cash Flows from Sale of Ethanol to OMC by sugar Company will be Escrowed and paid directly to the Banker. The Banks can then recover the loan from such Escrowed cash flow.
The above is a very bold initiative taken by the Government for addressing the major concern andcan be a game changer event if implement properly and Praj Industries being the market leader in Ethanol in India will be the immediate beneficiary.
https://biofuels-news.com/news/gevo-praj-industries-to-develop-saf-in-india/
Convert sugar factories into bio-energy hubs: Food Secy, Energy News, ET EnergyWorld.
Mr Nitin Gadkari who is know as Execution man is also very much bullish on Bio Fuels and when he speaks he means buisness…
It clearly shows that Bio Fuels is in the focussed agenda of the Government.
It also shows the respect which is commanded by Praj Industries and its Promoters.
One thing is Political connection and Praj is one step ahead and has earned Political respect and also support so that it levers for over all benefit of the Country.
This can be a game changer for the Company
NEW DELHI: India will see an investment of Rs 2 lakh crore in setting up 5,000 plants that will produce gas from bio and crop wastes by 2023-24, Oil Minister Dharmendra Pradhan said on Friday.
To boost the availability of affordable and clean transport fuel, an agreement was signed for setting up 900 compressed bio-gas or CBG plants by companies such as Adani Gas and Torrent Gas.
Under the Sustainable Alternative Towards Affordable Transportation (SATAT) initiative, the government is looking at setting up of 5,000 CBG plants by 2023-24 with a production target of 15 million tonnes, an official statement said.
Speaking on the occasion, Pradhan said, “We have developed a clear-cut roadmap for SATAT. Letter of intent for 600 CBG plants have already been given and with today’s signing of MoUs for 900 plants, a total of 1500 CBG plants are at various stages of execution.”
As much as Rs 30,000 crore investment is envisaged in these 900 plants, he said. “A total of 5000 CBG plants with an approximate investment of Rs 2 lakh crores are envisaged.”
The gas produced at CBG plants can be used as fuel to power automobiles. Biofuels have the potential to reduce fuel import bill by Rs 1 lakh crore, he said without elaborating.
Pradhan said SATAT provides for generating gas from municipal waste as well as forest and agri waste. Animal husbandry and marine wastes are also included.
The policy provides for guaranteed offtake of the gas produced at the CBG plants by the state-owned firms.
“SATAT will establish an ecosystem for the production of compressed bio gas from various waste and biomass sources in the country leading to multiple benefits such as reduction of natural gas import, reduction of greenhouse gas emission, reduction in burning of agriculture residues, remunerative income to farmers, employment generation and effective waste management,” the statement said.
"Praj Industries has signed a non-binding Memorandum of Understanding (MoU) with Ministry of Petroleum & Natural Gas in presence of Minister Petroleum & Natural Gas & Steel, on November 20, 2020 with the objective to facilitate technological support to the entities for setting-up and commissioning of multiple number of eligible and qualified CBG (compressed bio-gas) plants and their continuous operation for production of CBG and Organic Compost Manure under Sustainable Alternative Towards Affordable Transportation,
Subject: Disclosure under Regulation 30 of SEBI (LODR) Regulation, 2015.
Dear Sir/Madam,
This is to inform that Praj Industries Ltd. has received an Order for Rs. 226.90 crores (Rupees Two
Hundred Twenty Six Crore and Ninety Lakhs only) from Indian Oil Corporation Limited
(IOCL), New Delhi, for execution of Zero Liquid Discharge System - “Water Treatment Package and Waste Water Treatment Package of Acrylic/Oxo-Alcohol Project at IOCL Dumad, Gujarat”. This information is being given under Regulation 30 of SEBI (LODR) Regulations, 2015 for your kind information and records please.
Praj ranked as 2"d hottest company in global Bioeconomy for 2021
• Creates History by becoming First Indian company
Pune, January 4, 2021: US based Biofuels Digest has announced that Praj Industries of India is ranked 2nd in
a list of world’s 50 Hottest companies in global bioeconomy for 2021 in Low Carbon Fuels and Renewable
Chemicals category. This list represents companies that have made outstanding contribution to bioeconomy
by developing and deploying sustainable decarbonization solutions using innovative technologies that help
preserve environment.
Additionally, Praj has also secured 3rd ranking in the newly introduced Biodesign & Engineering category that
recognizes hottest companies for their capabilities in innovations and services in commercial-scale
operations and products.
This is the first time any Indian company has broken into the top bracket of the industrial biotechnology
sector globally. Praj Industries tops the list that includes fortune 500 companies and global majors.
Praj’s growing prowess as a technology leader is reflected in company’s rapid rise in these annual rankings in
past few years. Praj was ranked #34 in 2018 and forayed into top 10 with #8 in 2019. Earlier this year, Praj
was ranked No. 1 among the best places to work in the advanced bioeconomy 2020 by Biofuels Digest.
While congratulating Praj on this achievement, Mr. Jim Lane, Editor and Publisher of the Biofuels Digest,
said, “It’s the highest ranking ever achieved by a company out of Asia, and the highest ever for an
engineering services company. This year, the invited international selectors and subscribers agreed that Praj
Industries has become a world-leader in the transition to renewable fuels and biobased chemicals. Voters
have taken note of the company’s great record of achievement in first-generation fuels, now complemented
by breakthrough second-generation technologies that have led to partnerships for progress all around the
globe. We’ve seen for several years a decisive shift towards renewables all across India and Praj is in the
front of that movement.”
In its journey of four decades, Praj has established in excess of 750 customer references in over 75 countries
across 5 continents. Through its Bio-Mobility™ platform of low carbon gaseous and liquid biofuels, Praj is
helping reconfigure transportation fuel landscape across all modes of mobility namely Road, Air and Marine.
It may be recalled that with the launch of Bio-Prism™ portfolio of technology solutions, Company recently
forayed in global Renewable Chemicals and Materials industry.
Talking about this landmark achievement, Dr. Pramod Chaudhari, Founder Chairman, Praj said, “We are very
proud of 2°d ranking in the Low Carbon Fuels and Renewable Chemicals category that manifests Praj’s
market positioning as a global leader in industrial biotechnology. This stature is only reinforced by 3rd
ranking in the Biodesign & Engineering category, a definitive endorsement of Praj’s capabilities across the
value chain. I wish to acknowledge unfailing support of our customers across the world, partners, investors
and employees. I see this as recognition of Praj’s vision of offering environment friendly and sustainable
solutions to make the world a better place. With this honor comes a greater expectations from stakeholders
and team Praj is well geared to come good on the promise.”
Praj Industries Ltd., Praj Tower, Hinjewadi, Pune: 411057, India
Tel: 020-71802000/22941000, E-mail: info@praj.netWeb:www.praj.net
It may be noted that recently Dr. Pramod Chaudhari, Founc:lPr Chairman of Praj Group was bestowed with
prestigious George Washington Carver Award 2020 for his outstanding contribution in the Industrial
Biotechnology sector worldwide.
The US based Biofuels Digest with over 4.5 million readers, is widely referred by key stakeholders such as
CEOs, decision makers & influencers etc. in Biofuels industry worldwide. For over a decade, The Digest has
been releasing the list of “Top 50 Hottest Companies in Advanced Bio-Economy”- one of the most awaited
annual industry event.
Praj Industries Limited:
Praj, India’s most accomplished industrial biotechnology company is driven by innovation, integration and
delivery capabilities. Over the past three decades, Praj has focused on the environment, energy, and agriprocess industry, with over 750 customer references spanning 75 countries across 5 continents. BiomobilityTM and Bio-Prism TM are the mainstays of Praj’s contribution to the global Bioeconomy. The BioMobility portfolio offers technology solutions globally to produce renewable transportation fuel, thus
ensuring sustainable decarbonization through circular bioeconomy. The company’s Bio-Prism TM portfolio
comprises of technologies for production of renewable chemicals and materials solutions, promises
sustainability, while reimagining nature.
Praj Matrix, the state-of-the-art R&D facility, forms the backbone for the company’s endeavors towards a
clean energy-based Bioeconomy.
Praj’s diverse portfolio comprises of Bio-energy solutions, Critical process equipment & skids, Breweries,
Zero liquid discharge systems and High purity water systems.
Led by an accomplished and caring leadership, Praj is a socially responsible corporate citizen. Praj is listed on
the Bombay and National Stock Exchanges of India.
For more information, visit www.praj.net.
This company always flatter to deceive. On paper, they have so much to offer but they fail short on implementation. I was shareholder of this company few years back and after holding it for few years and attending a AGM, I sold the shares at loss. One simple look at their last 10 years performance will make it clear what I am trying to say
Look at PAT line…
