Ethanol technology is available with many vendors and I do not see any exclusivity with Praj Industries. Just found that small unknown company like Excel are also capable of supplying this technology. Apart from this ISGEC is also having execution capabilities for Ethanol.
ISGEC | Ethanol Plant | Ethanol Plant Supplier| Process House Equipment.
TERMOMECCANICA Zero Liquid Discharge (ZLD) Plants - TECHPERT
Since there is no exclusive and superior technology with Praj for Ethanol, it will be very difficult for negotiating high margin.
Also from some sources I have found out that in some cases Praj is now bidding for entire Project which apart from supply of Ethanol plant includes other construction related works. This will have positive impact on overall order inflow but then we will have to settle with lower margins.
Time stamp 34.40
Further with regard to 2G technology where the company has first mover advantage, the technology is yet to prove its commercial viability. Mr Joshipuria has smartly avoided answering directly to question related to IRR of 2g project in concal at time stamp PRAJIND Stock | Praj Industries Ltd Q1 FY22 Earnings Concall - YouTube. But admits at later part of the Concal that at least for next 2 to 3 years there will not be much of traction in 2G space.
In case 2G technology is commercial not viable then we will have to rely only on government projects in India. May be the Company will see traction overseas i.e Europe and USA.
CBG space will see traction after 18 to 24 months but viability is still a question???.
I some how feel lack of fire in the belly of management.
https://economictimes.indiatimes.com/plans2.cms?dc=ETPRFREDMP
Disclosure : Invested from lower levels and booked profit in 50% holding at higher levels around 360.