Date:22/07/2006 URL: http://www.thehindubusinessline.com/2006/07/22/stories/2006072202990200.htm

Back Praj Industries to invest in R&D

Our Bureau

Eyeing acquisition in US

Pune , July 21

Investment in research and development, adding manufacturing capacity and an acquisition in the US, which would be finalised by September-end, is the roadmap of the Pune-based Praj Industries Ltd, player in the brewery segment, for the current fiscal.

Talking to presspersons, after the annual general meeting, Mr Pramod Chaudhari, Chairman, said about Rs 39 crore has been earmarked for these and would be utilised within the next six months.

He said this is the first tranche of funds, which has been received from the preferential issue. The company is looking at cellulosic biomass for the production of ethanol and for the present bagasse would be used as the raw material. Later on straw and switch grass would be looked into as raw material.

He said this would involve working with newer media and noted that with this, the investment in R&D would exceed the one per cent mark.

Mr Pramod said it is also adding two additional manufacturing capacities — one would be located near a port and the other in New Mumbai.

Q1 sales rise

Announcing the company's first quarter results of the current fiscal, he said it recorded sales of Rs 81 crore against Rs 61 crore of the corresponding fiscal quarter. It has recorded a profit before tax of Rs 11 crore (Rs 6.76 crore) and a profit after tax of Rs 8.4 crore (Rs 5.6 crore).