Bio Energy High Purity Solutions Engineering Businesses Bioproducts

PRAJ INDUSTRIES
With a humble beginning as a supplier of ethanol plants, today Praj Industries is

an undisputed GLOBAL ETHANOL PLANT SOLUTIONS LEADER providing end to end
services across 75 countries.
Domestic Share = ~65%
Share in Emerging Markets = ~50%
Business Lines of PRAJ INDUSTRIES:
High Purity Engineering

Bio Energy Bioproducts
Solutions Businesses
Bio Energy
1G Ethanol 2G Ethanol Bio-MobilityTM
Sugar based feedstock like The Bio-MobilityTM platform
sugarcane juice, sugarcane promotes the use of renewable
molasses, beet; grains like corn, resources to produce carbon
rice, wheat; tubers like cassava are neutral transportation fuel across
the conventional feedstock all modes of mobility (surface, air
collectively termed as and water). As part of this
1st generation feedstock. Ethanol platform, Praj deploys its biofuel
derived from these sources is technologies for the transportation
termed as 1st generation ethanol. sector, thus playing a role to help
mitigate the dangers of climate
change.
Praj Industries provides:
• Multi-feed multi-product plants
• Modernization of existing plants
• Renewable Fuels like BioCNG,
iso-butanol.
PRAJ High Purity Systems Limited
• Praj Hipurity Systems Limited (PHS) is a wholly owned subsidiary of Praj Industries
Limited (Praj), India.
• It is a leading player in three business lines:
Water systems Modular Process Systems Value Added Services

• Raw water to point of • Solutions for Pharma & • Special products
use BioPharma • Spares & Consumables
• Pre treatment • Process Vessels • Services
• Purified Water • Sterile Filtration Systems • Special Services
Generation • Bio-inactivation
• Storage & Distribution • Process Piping
• Water for injection & • Process Automation
Pure steam generation
• It has a successfully proven history of installing plants for commercial production of
biosimilars, vaccines, plasma proteins, enzyme, nutraceuticals, sterile formulations, and
non sterile formulations.
Engineering Business
Critical Process Equipment & Skid Engineering and Process
Brewery Plants
Systems Solutions
• The brewery division offers • It offers critical process • A Modular process skid is a
customised plants, equipment equipment and systems to system within a frame that
& technology solutions to various process industries allows easy transportation.
customers in the brewing such as Oil & Gas, Refining, Individual skids can contain
industry. Petrochemicals, Fertilizers, complete process systems or
• It has a 70% market share in Chemicals, Food, Pharma and multiple skids can be
India. Biotech. combined to create a larger
• They provide support to process system or an entire
clients with finite element portable plant.
analysis, Processes and • It is an alternative to
Thermal Design and Piping traditional stick-built
Design and Stress Analysis. construction.
Wastewater Treatment
• It is a one stop solution for all waste water treatment needs.
• It focuses on the foundational principle of 3Rs i.e. Reduce, Reuse and Recycle.
Bioproducts
• It specializes in development of innovative formulations that add economic value to bio chemical
processes. It offers performance enhancement bio-products to improve operational efficiency and
product quality.
• Applications: It caters to various industries over 12 countries. The formulations are based on
specific applications of the products.
Industries served:
Ethanol – Fuel & Other Sugar Mills Breweries and Wineries

Grades
Summary of Revenue Mix from various Verticals
Revenue Mix FY16 FY17 Revenue Mix FY18 FY19 FY20 9MFY21
Ethanol 63% 56% Bio Energy 52% 51% 61% 66%
Brewery 12% 13% HiPurity 19% 14% 11% 16%
Emerging
Segments 25% 31% Engineering 29% 35% 28% 18%
Total (Rs in Crs) 1024 915 Total (Rs in Crs) 917 1141 1102 738
Export% 42% 25% Export% 39% 32% 34% 29%
Domestic% 58% 75% Domestic% 61% 68% 66% 71%
Note – Till FY18 Emerging Segments included HiPurity & Engineering segments
1st - Opportunity from recent Government
Initiatives
• The Indian Government has pre-poned the target of achieving 20% ethanol-blending with petrol
by five years from 2030 to 2025. The government has set a target of achieving 10% ethanol-
blending by 2022.
• India is 83% dependent on imports for meeting its oil needs. Blending ethanol will cut down the
import requirement. Also, ethanol is a less polluting fuel and it will cut down carbon emissions.
• At 5% blending, 350 crore litres of ethanol is being blended with petrol. To achieve 20% blending,
another 1000 crore litres of manufacturing capacity is required to be added.
• PRAJ Industries is India’s largest ethanol equipment manufacture. They have a great
understanding of feedstocks across the globe, patented technologies, engineering &
manufacturing capabilities and a prompt customer care cell.
2nd – Opportunity of Compressed Bio Gas
(CBG)
• The GOI has envisaged 5000 CBG plants which will produce 15 MMT (Million Metric Tonnes) of
gas under the Sustainable Alternative Towards Affordable Transportation (SATAT). An investment
of over 2 lakh crore is expected to be pumped into setting up these plants.
• The government has fixed CBG prices at Rs 46 per kg (2023-2028) for projects under the SATAT
Policy.
• The government aims to increase the share of natural gas in the country’s energy mix to 15% by
2030 from the current 6%.
• The government has categorized CBG plants under the ‘white category’, so they will not require
any consent from the pollution boards for operations.
• The government has included CBG projects under ‘priority-sector lending’, it has also eased
funding norms and is providing financial assistance to promote this sector.
• There is no restriction on the technology choice for the developers.
• PRAJ Industries has signed an MoU with Ministry of Petroleum & Natural Gas for providing
technology support to CBG project under the SATAT Scheme.
• It will help solve the problem of stubble burning affecting Northern India.
• Praj Industries has won what it described as a ‘breakthrough’ order from Hindustan Petroleum
Corporation Limited (HPCL) for setting up a Compressed Biogas (CBG) project at Badaun in Uttar
Pradesh. Praj is offering its State of the art, worlds’ first of its kind RenGasTM technology
developed using proprietary microbe to produce CBG from rice straw.
• The project has a planned capacity to process 35000 MT of rice straw as feedstock to generate
5250 MT of CBG annually. In addition, the project will also generate 23,000 MT high quality solid
bio- manure and 350,000 MT of liquid bio-manure for ferti-irrigation. This project has a potential
to save up to 15000 MT of CO2 emissions per year.
Forward Looking Revenue
Statement
Praj Industries
Estimates
Base Case Optimistic Case
Segment (Rs in Crs) FY18 FY19 FY20 9MFY21 FY21E FY22E FY23E FY22E FY23E
Bio Energy 477 582 672 487 720 1046 1389 1100 1600
Hi Purity 174 155 121 118 170 180 225 196 225
Engineering 266 411 309 133 200 240 270 250 300
Total revenue 917 1148 1102 738 1090 1466 1884 1546 2125
Gross Margins 49% 47% 50% 45% 45% 45% 45% 45% 45%
Gross Profit 449 536 551 332 491 660 848 695 956
Employee Cost 149 161 164 115 160 180 200 180 200
Other Op Cost 248 296 309 172 246 324 407 336 444
EBITDA 52 79 78 45 85 156 241 179 312
EBITDA % 5.7% 6.9% 7.1% 6.1% 7.8% 10.6% 12.8% 11.6% 14.7%
PBT 53 83 88 40 83 154 240 178 312
PAT 39 68 70 29 62 116 180 133 234
P/E 75 40 26 35 20
EV/EBITDA 50 27 18 24 14
Order Inflows are gaining traction
• Bio Energy (1G/2G Ethanol) till date has been a major source of revenue and will continue to be
the major driving source.
• Traction is already visible in order inflows as the 9mFY21 order inflows have already surpassed
the full year FY20/18/17/16 numbers.
Order Inflow Mix FY16 FY17 Order Inflow Mix FY18 FY19 FY20 9MFY21
Ethanol 58% 62% Bio Energy 50% 66% 60% 52%
Brewery 12% 8% HiPurity 14% 10% 13% 11%
Emerging segment 30% 30% Engineering 36% 24% 27% 37%
Total (Rs in Crs) 1013 997 Total (Rs in Crs) 1040 1394 1256 1320
Export 32% 27% Export 29% 30% 16% 31%
Domestic 68% 73% Domestic 71% 70% 84% 69%
Well Experienced Management
• Dr. Pramod Chaudhari, Executive Chairman

Mr. Pramod Chaudhary is an IIT Mumbai graduate and is a first-generation entrepreneur. He has also
been Voted amongst 'Globally Top 100 People' in Bioenergy space by Biofuels Digest. He has a
strong belief in principle of triple bottom-line, that his business model is inherently scalable,
replicable and sustainable. Under his leadership Praj fostered the emergence of advanced
technologies in certain Bio-Energy and allied space.
• Shishir Joshipura, CEO

Mr. Joshipura is a Mechanical Engineer from BITS Pilani and an Advanced Management Graduate
from Harvard Business School. Prior to joining Praj, he was Managing Director and Country Manager
of SKF India Ltd. from 2009 & also former EVP, Divisional Head in Thermax Limited.
Risk & Challenges
• The Major risk is that the entire story is based on the Policy set by the government. Any negative
change (looking unlikely at the moment) would be a BIG Negative for Praj Industries
• Evacuation of Ethanol / Gas from CBG plants across India to Oil Marketing companies – this is the
main challenge at the moment and could take some time before the necessary infrastructure is
ready (mainly for the CBG)
• Promoter Holding has remained low at 32.9% and continues to be so
• 2G Ethanol Play likely to be replaced by CBG as highlighted by this article:

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PRAJ INDUSTRIES

With a humble beginning as a supplier of ethanol plants, today Praj Industries is

Business Lines of PRAJ INDUSTRIES:

High Purity Engineering

Water systems Modular Process Systems Value Added Services

Ethanol – Fuel & Other Sugar Mills Breweries and Wineries

• Dr. Pramod Chaudhari, Executive Chairman

• Shishir Joshipura, CEO

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