Speaking to Anil Singhvi, MD and CEO of Praj Industries says company's orderbook has surged 80%, ethanol production to increase
Zee Business Managing Editor Anil Singhvi today spoke to Shishir Joshipura, MD and CEO of Praj Industries. He said that Praj Industries started its business operations way back in 1983. The operations of the company now are in as many as 75+ countries. The company is into environment, energy and agriculture related businesses. The Market Guru added that the results for Q4 FY21 were extremely strong on all parameters
Zee Business Managing Editor Anil Singhvi today spoke to Shishir Joshipura, MD and CEO of Praj Industries. He said that Praj Industries started its business operations way back in 1983. The operations of the company now are in as many as 75+ countries. The company is into environment, energy and agriculture related businesses. The Market Guru added that the results for Q4 FY21 were extremely strong on all parameters.
Joshipura said that the Government has taken many decisions in regards to Biofuels in the last 2 years which have benefited the company and the entire sector. Ethanol is a by-product of the sugar manufacturing process and that’s the reason sugar companies are also in focus nowadays. Sugar companies are good candidates to benefit because of ethanol production.
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Joshipura said that the Government has said that the Ethanol blending programme should be 20% in 2025, which is 7% now. This implies that Ethanol production will rise 3 times from here on. The cash cycle of Ethanol is extremely good and the demand is rising sharply. This is making it extremely attractive. Praj Industries is getting benefitted due to the technology it is using for producing Ethanol.
#NewsParViews | प्राज इंडस्ट्रीज की एक साल में ऑर्डर्स बुक में 80 परसेंट की बढ़त...
— Zee Business (@ZeeBusiness) May 7, 2021
Joshipura said that to meet the Government target of 20% Ethanol Blending in 2025, Ethanol capacity has to be increased by 1000 cr litres. He said that based on last year's order book, the company can do production of 100 cr litres. This indicates that the Ethanol capacity is going to increase drastically going forward and will benefit Praj industries as well. This sector will attract new investment as well.
Joshipura said that the Government has notified that not only sugar but also grain can be used for ethanol production. This will benefit the related companies within these 2 sectors. Huge capacity will be developed in the next 4 years till 2025, which will benefit the company going forward.
Joshipura said that in the US after the Biden Government came to power, the renewable energy sector is also going to attract a lot of investment going forward. Brazil and other countries have also witnessed the importance of Ethanol Blending programme going forward. Governments of many countries are realising that this will be a good resource for the economy and also from an environmental point of view it will reduce carbon emissions and protect.
Joshipura said that Ethanol is a proven technology, but going forward in Aviation, marine and other Industries will see huge demand in Biofuels going forward.
Joshipura also revealed that that the orderbook has increased 80% when compared to last year. He said while Sugar business is seasonal, from October to March, this is not the case with grain. Praj industries will benefit from the new capacities generated because of these 2 sectors.
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