Shares of Praj Industries experienced a remarkable boost on November 22, 2024, as the stock rallied 9.61%, reaching an intraday high of ₹740.90 per share. The surge followed the company’s announcement of an ambitious plan to triple its revenues by 2030, which was unveiled during a press conference.
Praj Industries Eyes Diverse Growth Opportunities
Praj Industries is actively pursuing growth in multiple sectors, including sustainable aviation fuel (SAF), biopolymers, and energy transition & climate action (ETCA) initiatives. The company’s leadership highlighted the immense potential in these sectors, driven by global energy shifts and increasing investments in clean energy solutions.
ETCA: A Key Growth Driver
Dr. Pramod Chaudhari, Executive Chairman of Praj Industries, emphasized the transformative role of the energy transition & climate actions (ETCA) sector. This sector includes promising areas such as blue and green hydrogen, green ammonia, and waste-to-energy solutions. According to Dr. Chaudhari, global investments in clean energy are expected to reach ₹25 lakh crore by 2030, while traditional oil and gas markets are projected to attract ₹21 lakh crore in investments over the same period.
To meet the growing demand for modular plant solutions in these sectors, Praj Industries has significantly advanced its engineering capabilities. The company recently established a cutting-edge manufacturing facility in Mangalore, Karnataka, with an investment of approximately ₹400 crore. Spanning 123 acres, this plant is designed to generate annual revenues of ₹2,000–2,500 crore when operating at full capacity.
Sustainable Aviation Fuel: A Game-Changer
The CORSIA agreement (Carbon Offsetting and Reduction Scheme for International Aviation) has unlocked new opportunities for Praj Industries in the sustainable aviation fuel (SAF) sector. According to Ghanshyam Deshpande, President of Technology and Engineering, the SAF industry is poised for growth as India targets SAF blending of 1% by 2027 and 2% by 2028.
In a landmark achievement, India’s first commercial passenger flight powered by domestically produced SAF took off from Pune to New Delhi. This initiative was a collaboration between AirAsia, Praj Industries, and Indian Oil Limited (IOL), showcasing the potential of SAF in reducing aviation emissions.
Revenue Growth and Export Expansion Goals
Atul Mulay, President of Bioenergy at Praj Industries, outlined the company’s ambitious revenue target of ₹10,000 crore by 2030, a significant leap from its current revenue of approximately ₹3,400 crore annually. Praj also aims to increase its export share from the present 29% to 50% by 2030, further bolstering its global footprint.
Praj’s Core Platforms and Sustainability Leadership
With a legacy of over four decades, Praj Industries is a leader in industrial biotechnology and a pioneer in sustainability-driven solutions. Its flagship platforms, BioMobility and Bio-Prism, are central to its contributions to the global bioeconomy.
- BioMobility focuses on renewable transportation fuels, enabling sustainable decarbonization through a circular bioeconomy approach.
- Bio-Prism offers cutting-edge technologies for renewable chemicals and materials, promoting eco-friendly innovations.
These platforms are supported by Praj Matrix, the company’s state-of-the-art R&D facility, which drives advancements in clean energy and industrial biotechnology.
Diversified Offerings for a Sustainable Future
Praj Industries delivers a wide range of sustainable solutions, including:
- Bio-energy technologies for renewable fuels.
- Critical process equipment and modularization for plant setups.
- Breweries and high-purity water systems.
- Zero liquid discharge systems for eco-friendly industrial operations.
Market Performance and Valuation
The company’s market capitalization stands at ₹13,455.12 crore, placing it among the BSE 500 companies. As of 10:50 AM on November 22, 2024, Praj Industries shares were trading 8.30% higher at ₹732 per share, outperforming the BSE Sensex, which recorded a 0.56% rise to 77,587.64.
Conclusion
Praj Industries is well-positioned to achieve its ambitious revenue and sustainability goals, driven by strategic investments, innovative platforms, and expanding global demand for clean energy solutions. As the world transitions to a greener future, Praj’s diversified portfolio and cutting-edge technology will continue to solidify its leadership in the bioeconomy sector.
