Praj Industries Limited · NSE:PRAJIND
Praj Industries — Investor Presentation (November 2023)
56 slides from Praj Industries's investor presentation, Nov 29, 2023
Slide 1: Cover letter to stock exchanges
DATE: 29th November, 2023 REF. : PIL/DVN/L-124/2023-24 Security Code No.: 522205 Company Code- PRAJIND BSE LIMITED NATIONAL STOCK EXCHANGE OF PHIROZE JEEJEEBHOY TOWERS, INDIA LTD. 25TH FLOOR, DALAL STREET, EXCHANGE PLAZA, 5TH FLOOR, MUMBAI - 400 001 PLOT NO. C/1, G BLOCK, Fax: 022- BANDRA-KURLA COMP
Slide 2: Building a Sustainable Future
BUILDING A SUSTAINABLE FUTURE 29th Nov 2023
Slide 3: Celebrating completion of 40 Years
Celebrating completion of 40 Years 2
Slide 4: Our journey - Decade #1
Our journey- Decade #1 Launched Deployed continuous Innovative Starch Focus on R&D fermentation based ethanol since inception technology technology. R&D 1989 1992 1983 1987 1992 Founded as an Among the firsts Entry into Agri Processing to receive ICICI South East Asia venture venture funding Busines
Slide 5: Our journey - Decade #2
Our journey- Decade #2 Foray into synergistic brewery Relocation of R&D business JV in Singapore center to Praj House 1994 1997 2002 1994 1998 2002 Listing on BSE, NSE; Entry into Successful testing Over-subscribed South America of fuel ethanol on for almost seven pilot scale in India times Business
Slide 6: Our journey - Decade #3
Our journey- Decade #3 Forayed into Critical Entry into process equipment, European wastewater treatment Ratan Tata, Vinod solutions market Khosla invest in Praj 2005 2007 2008 2004 2006 2007 2013 Rakesh First project win Praj Matrix, State of the Entered high purity Jhunjhunwala in USA Art R&D cent
Slide 7: Our journey - Decade #4
Our journey- Decade #4 Inauguration of 2G plant SAF- Successful testing of Launch of RCM at hands of Hon. Prime commercial passenger portfolio of technology Minister flight 2020 2022 2023 2017 2020 2023 Successful Demo plant for New Subsidiary Praj commissioning of CBG at Praj Matrix GenX 2G demo pl
Slide 8: Praj Today
Praj Today 1000++ references worldwide Revenue ~$425 Mn+ Presence across 100+ countries 25 years regular Urawade, Pune Dividend payout 400 + overseas references 40 years 4 manufacturing Sanaswadi, Pune Wada locations ~10 % of Offices in 4 continents Praj Tower Global ethanol production 1800+ capacit
Slide 9: Awards and Accolades
Awards and Accolades SUSTAINABLE 8
Slide 10: Awards and Accolades
Awards and Accolades George Washington Carver Award 2020 William C Holmberg Award 2022 9
Slide 11: Leadership in Bioeconomy
Leadership in Bioeconomy
Slide 12: FY 16 FY 20 FY 17
FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23
Slide 13: Bioeconomy - A promising pathway for Sustainable Climate Action
Bioeconomy- A promising pathway for Sustainable Climate Action Bioeconomy is knowledge-based production and use of biological resources to provide products, processes services & energy in all economic sectors within the frame of a sustainable economic system. 1. Renewable source 2. Sustainable decar
Slide 14: Two-pronged strategy in Bioeconomy
Two-pronged strategy in Bioeconomy EXPERTISE Driving Sustainable Climate Action through Bioeconomy 13
Slide 15: FTP - Bedrock of Praj strategy
FTP- Bedrock of Praj strategy Feedstock Technology Product (F) (T) (P) Feedstock Expertise Sugary C-molasses, B-heavy molasses, Sugarcane syrup/Biosyrup 1st Generation Conventional Bioet Starchy (1G) hanol, RCM* Damaged/Surplus Grain like Rice, Wheat, maize (corn),Tuber, etc. Lignocellulosic Advance
Slide 16: Bio-Mobility: Decarbonizing the transportation Industry
Bio-Mobility® : Decarbonizing the transportation Industry Bio-Hydrogen Future Biofuels Bio-Methanol Marine Biofuels Next Gen Biofuels SAFs ® CBG (RNG) Advanced Biofuels Cellulosic Biofuels 2G (Ultra Low Carbon) Biodiesel Conventional Biofuels Bioethanol 1G (Low Carbon) *SAFs- Sustainable Aviation Fu
Slide 17: Global Footprint
Global Footprint Cilion Inc. USA Triveni Engineering, India Manuelita, South America Kakira Sugars, Africa Biowanze, Europe Progreen, South-East Asia 16
Slide 18: Global Biofuels Alliance
Global Biofuels Alliance • Watershed moment for the biofuels industry • Committed to facilitate access to technology, fostering an • Anchored by India, the United States, and Brazil. ecosystem and initiating policy interventions & alterations • 19 Countries & 12 International organizations have • In
Slide 19: Sustainable Technologies
Sustainable Technologies Carbon footprint Water footprint Energy footprint reduction reduction reduction 18
Slide 20: Low Carbon Ethanol - Praj's unique approach
Low Carbon Ethanol – Praj's unique approach Lowering the carbon intensity for existing corn ethanol through – • Energy integration • Process integration & • Process optimization solutions 19
Slide 21: Praj Ultra Low Carbon Ethanol Plant
Praj Ultra Low Carbon Ethanol Plant Colocation to Refinery Capacity Cellulosic(2G) enfinity® Technology 100 klpd EtOH IOCL – Panipat, Haryana IOCL Colocation to Greenfield Low CI EtOH plant Capacity Capacity 100 klpd 100 klpd EtOH EtOH BPCL - Bargarh, Odisha BPCL HPCL HPCL – Bhatinda, Punjab 20
Slide 22: Praj Ultra Low Carbon Ethanol Plant
Praj Ultra Low Carbon Ethanol Plant • No. of farmers to be benefited: ~100,000 • First ethanol is out of the plant • Rural Job Creation: ~1,500 • Plant under recommissioning now • No. of cars to be displaced annually: ~63,000 • Will be operational @60% capacity by March 2024 • CO2 Emission reduction
Slide 23: 2G Ethanol: International opportunity
2G Ethanol: International opportunity Agricultural Residues as feedstock Forest Residues as feedstock • Enfinity: Praj’s proprietary technology • Praj & Sekab, Sweden have jointly developed CellunitiTM • Europe, as per RED III mandate to move to 2nd Generation ethanol 22
Slide 24: Compressed Bio Gas (CBG)
Compressed Bio Gas (CBG) • Industry ecosystem gradually building up • Bold plans announced by both Public sector companies as well as large business conglomerates • International Opportunity: RNG • Unique solutions- rich understanding of biotechnology • Strong references of commercial scale plants b
Slide 25: Engineering Services & Life Cycle Management
Engineering Services & Life Cycle Management • Plant Audit & Integration engineering • Remote Bridge: Leveraging Digitalization for plant performance monitoring • Operations and Maintenances of Plants • Performance Enhancers for ethanol plants 24
Slide 26: Sustainable Aviation Fuel (SAF)
Sustainable Aviation Fuel (SAF) • CORSIA Agreement for use of SAF • Countries globally setting SAF mandates: • India has set target of blending SAF: (USA - ~10% by 2030 & EU 6% by 2030) ❑ 1% by 2027 ❑ 2% by 2028 • Global leaders as technology partners GEVO and Axens 25
Slide 27: Energy Transition & Climate Actions (ETCA)
Energy Transition & Climate Actions (ETCA) • Energy giants investing in Blue and Green Hydrogen Green Ammonia, Waste-To-Energy projects • Increasing demand for Modularization • $300+ Bn investment in clean energy by 2030 • Traditional O&G market: Investment of $250 Bn per year for the next 7 to 10 y
Slide 28: Zero Liquid Discharge Solutions
Zero Liquid Discharge Solutions • Comprehensive range of solutions for industrial effluent treatment, recycling and ZLD systems • Strong references in metals, industrial waste, refinery sector • Growing awareness of Water Management • Specialized microbes for difficult to treat industrial effluent •
Slide 29: Brewery & Beverage
Brewery & Beverage • Strong leadership in domestic market • Working with all three major global beer makers • Market bouncing back after subdued performance in last three years • Hygienic manufacturing and process expertise to expand its offerings for other beverages 28
Slide 30: High Purity
High Purity • Offerings across Pharma- Hi Purity Water, Modular Process solutions (MPS) and VAS • Semiconductor capacity creation to drive demand for high- purity water solutions • Growing demand for High-Capacity fermenters for biopharma • Leverage the fermentation capability of parent • Focused In
Slide 31: Customers References
Customers References EUROPE INDIA SOUTH EAST ASIA AMERICAS AFRICA 1000 ++ references in 100+ countries across all 5 continents. And still counting… 30
Slide 32: Financial Performance
Financial Performance 31
Slide 33: Financial Highlights
Financial Highlights 3,528 Praj Industries Business Segment Revenue (INR Crore) 7% 1. Bioenergy demonstrated healthy BioEnergy Engineering PHS growth (~40% CAGR) with 19% increasing market share in India and overseas 2,333 2. ETCA focused CPES has 9% showcased promising growth 20% (~40% CAGR) 3. Exp
Slide 34: Financial Highlights
Financial Highlights In INR crore OB EBDITA/ Revenue 350 9% 3189% 10% 9% 300 9% 250 9% 206 200 8% 7% 8% 150 119 8% 7% 88 100 82 7% 61 50 7% 0 6% FY18 FY19 FY20 FY21 FY22 FY23 EBDITA EBDITA/ Revenue% EPS ROCE% 36% 30% 31% 26% 23% 21% 15% 16% 12% 12% 11% 8% 6% FY18 FY19 FY20 FY21 FY22 FY23 33
Slide 35: Financial Highlights: Revenue Mix
Financial Highlights Growing share of Non-Bioenergy business segment Revenue Mix FY23 Targeted Revenue Mix 26% 38% 74% 62% BioEnergy Non-BioEnergy BioEnergy Non-BioEnergy 34
Slide 36: Financial Highlights: Domestic vs International
Financial Highlights Growing share of International Business Dom vs Inter. FY23 Targeted International Business 35
Slide 37: Corporate Social Responsibility
Corporate Social Responsibility 36
Slide 38: Environment, Social, Governance
Environment, Social, Governance Environment • GHG Emission reduction, Waste reduction, Zero Liquid Discharge • Green Procurement Initiative to enhance Sustainability among supply chain • Technology innovation in Bio-economy to accelerate Climate Action Social • Diversity and Inclusion initiatives Go
Slide 39: CSR Initiatives
CSR Initiatives Environment Health Education Sustainable water resources Preventive Healthcare for rural Hands on life skills education development women through Rural schools ▪ Widening and deepening of Streams ▪ Preventive healthcare program ▪ Infrastructure upgraded in 16 schools Key in 37 drough
Slide 40: A Net Zero Climate-Resilient Village Mandede
A Net Zero Climate-Resilient Village Mandede Initiatives in 6 thematic areas Water Energy Waste Agriculture Nature Social 39
Slide 41: Investing for Future
Investing for Future 40
Slide 42: Investing for future
Investing for future New Manufacturing Facility for Energy Transition & Climate Action (ETCA) Pilot Plant for Bioplastics Covered Area Open Area Total Area (Acres) (Sq ft) (Acres) Plot-A 72 711,000 30 Plot-B 51 674,000 11 Catalysis lab Total 123 1,385,000 41 41
Slide 43: Arise 2030: Future Horizons
Arise 2030 : Future Horizons 42
Slide 44: Bioeconomy for sustainable development
Bioeconomy for sustainable development Socio-economic Ecological Clean industry and economic Bioeconomy positively impacts 11 of the 17 Sustainable Development Goals 43
Slide 45: Benefits of Bioeconomy to mankind
Benefits of Bioeconomy to mankind Climate Action- CI Sustainability reduction Additional Oil Price value for Volatility farmers Environmental Economic Drivers Social Reduced Job Depend- protection ence on Imports Energy Security Bioeconomy facilitates holistic development of mankind 44
Slide 46: Bio-prism: Carbon recycling through RCM
Bio-prism® : Carbon recycling through RCM Bio-Prism® portfolio comprises of technologies for production of Renewable Chemicals and Materials (RCM). RCM produced from bio-based feed stocks are sustainable alternatives to products made from fossil resources. PROCESS APPLICATION 45 45
Slide 47: Pilot cum Demo plant for BioPlastic
Pilot cum Demo plant for BioPlastic • First-of-kind pilot cum demo plant for Polylactic Acid (PLA) being set up in the outskirts of Pune • Capex of around Rs. 60 crores • Multipurpose facility to be used for PLA, PHA and other products Phase 1: Lactic acid Phases Phase 2: Lactide & Protein Phase 3:
Slide 48: National Hydrogen Mission
National Hydrogen Mission • Green hydrogen from agri feedstock for maximum CI reduction • Hydrogen as future source for energy security • India’s vision as hub for green hydrogen 47
Slide 49: Sustainable Aviation Fuel
Sustainable Aviation Fuel • Decarbonization of hard to abate aviation sector • CORSIA guidelines coming into effect from 2027 • India; potential hub for production of SAF 48
Slide 50: Changing business models (Partnerships)
Changing business models (Partnerships) • Mainstreaming of bioeconomy- participation from global energy majors • Joint venture approach for leveraging synergies • Industry landscape evolving • Partnerships and collaborations; order of the day • Asset light business models • Life cycle management Pra
Slide 51: Biomanufacturing
Biomanufacturing • Reduction in dependence on petrochemicals in multiple sectors • Bio 3E Policy - (biotechnology for environment, economy and employment) • INR 10,000 Crore investment envisaged • Facilitate sustainable development • Job creation for farming community • Biopolymers and Biomaterials
Slide 52: Future Fuels: Renewable Syngas
Future Fuels: Renewable Syngas Integrated Renewable Syngas Technology Platform Feedstock Biological Thermo-chemical Fuels • Agri Residue Renewable Green Hydrogen Syngas • Forest residue (CO & H2) • Distillery Spent wash Biomethane Bio-methanol • Press Mud (CH4) • Food waste Di-methyl Ether Bio-metha
Slide 53: Future Fuels: Gas to Liquid Technology
Future Fuels: Gas to Liquid Technology Bio-Methanol Syngas • Up to 70% CI reduction for Marine Bio- application Biomethane Methanol (CH4) • Cost of production comparable to Steam Methane Methanol Synthesis & Reformation* Purification** fossil based Methanol ( < INR 40/kg)# Renewable Di-methyl Ether
Slide 54: Future Fuels (BTL Technology): Marine Biofuels
Future Fuels (BTL Technology): Marine Biofuels Marine Biofuel Lab Sample Agri-residue Solvent Thermal Solvolysis S/L Separation Char and Silica Solvent Recovery Solvent Recycle Marine fuel 53
Slide 55: Building Sustainable Future; Together
Exciting future -Unfolding Building Sustainable Future; Together ETCA Aspiration for 2030 CBG/RNG 3x SAF Revenue To be the global leader in Bioeconomy RCM • Global Biofuel Alliance will open several new markets for & Future Fuels Biofuel production across the globe • Ever expanding canvas of bio eco
Slide 56: Q&A
Q&A 55
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