Corporate Development

Published: Apr 15, 2022
Updated: Apr 15, 2022

Producing ethanol revolution

Praj Industries

Praj Industries (PI) has launched an innovative solution to process sugarcane juice into a new sustainable feedstock — ‘Biosyrup’ — for round the year ethanol production. The patented technology to process cane juice into Biosyrup has storability of upto 12 months. This facilitates sugar mills to produce ethanol beyond the sugar season, thus helping them to increase production capacity and maximize revenue. The company’s first of its kind patented technology for producing Biosyrup was successfully demonstrated during the launch ceremony held at Jaywant Sugars, Satara in Maharashtra.

In another development, PI has entered into an MoU with IOCL to explore opportunities in cleaner and greener sources of energy by exploring avenues such as the production of alcohol to jet (ATJ) fuels, 1G and 2G ethanol, compressed bio-gas (CBG) and related opportunities in the biofuels industry.

PI has also developed an advanced bio methanation technology based on proprietary microbiological pre-treatment for production of compressed biogas from agri residues and press mud. Using this technology, the company has commissioned over 40 plants in India which give high yields with 30% lower operating costs. More importantly, this process creates value-added manure with organic soil as a byproduct while advanced biogas cleaning techniques give pure methane.

Blending ethanol with diesel

In its latest move, PI in collaboration with the Pune based Automotive Research Association of India (ARAI) is developing a binder that will help blending ethanol with diesel. The project is in the testing phase. If it succeeds, this could be a game changer for both the country and the company because so far, ethanol is being blended only with petrol. This would obviously increase the demand for ethanol manifold.

Expressing his optimism, Shishir Joshipura, CEO and MD of the company, said “This project (binder) is in the testing phase and once the results are out, we will approach the government for a new fuel notification and interventions as needed. As diesel does not blend that easily as petrol with ethanol, we are developing the binder.”

New technology

Praj has commercialized an innovative technology to convert cellulosic feedstock, which is basically crop residues and remnants on the field after the crop is harvested. Commenting on this development, Mr Joshipura said, “We are setting up three commercial- scale second-generation ethanol projects for oil marketing companies such as IOCL, HPCL and BPCL. The first plant is expected to be commissioned later this year.”

Elaborating, Mr Joshipura said, “We now have the technology which is very new to convert these crop residues into ethanol. The cellulosic feedback will help create the capacity needed for the country.”

Using indigenous technology, PI has set up Europe’s largest ethanol plant in the UK, which uses wheat as the feedstock. Likewise, the company has set up 200 ethanol plants based on starchy feedstock such as wheat and corn.

PI is also in the process of setting up two plants that can use waste effluents from sugar mills and other agricultural waste to convert them into compressed biogas. Mr Joshipura said, “We need multi feedstocks and multiple technologies too. Renewable natural gas is as good as compressed natural gas and more efficient in vehicles.”

Strong R&D, manufacturing

PI is India’s leading industrial biotech company, driven by innovation and delivery capabilities. Its diverse portfolio comprises bio-energy solutions, critical process equipment and skids, breweries, zero liquid discharge systems and high purity water systems.

Praj Matrix, the state-of-the-art R&D facility, forms the backbone for the company’s endeavours towards a clean energy-based bio-economy. Over the past four decades, PI has focused on the environment, energy and agri-process industry with 1,000+ customers spanning 100+ countries across all five continents and more than 300 patents to its credit. The company has four manufacturing facilities and enjoys around 10% marketshare of global ethanol production. Out of 1,200+ employees, 90+ are research scientists.

Financials

During Q3 of FY22, the company secured new orders worth Rs 956 crore and as of December it had a cumulative order backlog of Rs 2,605 crore, comprising 66% from bioenergy, 20% from engineering and the remaining 6% from the high-purity water vertical. Geographically, 78% are domestic and 22% from the export market. Over 40% of its business comes from repeat customers.

During the nine months ended December 2021, on a consolidated basis, the company has clocked income from operations of Rs 1,504 crore (PY Rs 738 crore) with an impressive profit before tax and profit after tax of Rs 126.83 crore and Rs 92.60 crore respectively vis-à-vis Rs 39.92 crore and Rs 29.05 crore in FY21. Measuring its performance on a 3-year CAGR horizon, its revenue has grown at 12%, EBITDA at 25% and PAT at 27%. Interestingly, the company is net debt- free. The current equity capital is Rs 36.73 crore wherein the promoter group holds a 32.83% stake. While commenting on its 9-month performance, Mr Joshipura --said, “The rise in commodity prices led to continued pressure on margins. However, we remain optimistic of sustainable growth.”

Dr Pramod Chaudhari, founder and Executive Chairman of the company, recently was bestowed with the coveted 2022 William C Holmberg Award. On the occasion, Dr Chaudhari said, “The Indian bioeconomy is poised for exponential growth on the back of the nation’s net zero commitments outlined in the recently concluded COP26 summit. As a flagbearer of the bio-economy, Praj is in a pole position to capitalize on huge emerging opportunities.”