News: Praj to set up European JV, eyes Brazilian mkt

(PTI 19/04/2007) Mumbai - Brewery machinery manufacturer Praj Industries today said it will set up a joint venture with Aker Kvaerner of Netherlands with an investment of Rs 40 crore in a bid to expand the market opportunity for biofuel plants and to commence operations in Brazil. The board has given in-principle approval for initial investments of up to Rs 40 crore to establish the JV in Europe and to commence operations in Brazil, the company engaged in manufacturing distillation equipment and brewery machinery informed the Bombay Stock Exchange. The JV would offer European customers access to the complete scope of services required for license, plant design and construction with seamless integration and application of Praj Industries' technology, it added. In the proposed European JV with Aker Kvaerner, Praj Industries would hold 60 per cent stake and AK Process would hold 40 per cent of the shareholding. AK Process is a trading name and a wholly-owned subsidiary of Aker Kvaerner. The proposed JV would combine Aker Kvaerner's execution capabilities and extensive European market knowledge with the technological expertise of Praj Industries. Praj is also examining certain acquisition proposals with a view to entering Brazilian biofuels technology, plant and equipment market and establish an operational base. Ethanol production in Brazil is poised to double by 2010 and Praj sees an opportunity to serve these changing requirements, it said. Praj is also planning to enter into the bio-diesel technology domain and has created a separate division for the purpose. The company would offer in-house developed turnkey solutions including technology, engineering, plant and equipment and project management services. With its superior engineering expertise and understanding of agri-based raw materials, Praj Industries has on offer a robust plant which would have the capability to process a wide range of feeds stocks. Earlier, in 2006, the company and Aker Kvaerner had entered into an alliance for strategic cooperation on bio-ethanol projects in Europe. In a bid to expand the market opportunity for bio-fuel plants, the two firms commenced discussions to extend their association by forming a JV. Aker Kvaerner Netherlands BV, part of the Aker Kvaerner Group, would be the legal entity entering into the proposed JV with Praj Industries. The JV would be located in the Netherlands.