Praj acquires US engineering firm

New Delhi, Sep 19: Pune-based Praj Industries Ltd, a global leader in setting up alcohol and ethanol plants, today acquired US-based CJ Schneider Engineering Co (CJS), to enhance business potential in that country.

CJS, now a wholly-owned susidiary of the company, has contracts from leading ethanol producers for supply of various services in hand.

The acquisition of CJS, having expertise and experience in providing detailed engineering services to the biofuel industry including ethanol plants, is also expected to benefit Praj's customers in the US to get a wider range of services.

The take over has been funded by internal accruals and did not involve raising any additional or outside financing, a company statement said.

Within six month of its entry into US market, the company has been contracted to supply technology and machinery for seven ethanol plants.

Last month, Praj Industries announced that its board has approved investment of up to Rs 100 crore for expansion including acquisition of an engineering company in the US and setting up a new research and development centre, two manufacturing workshops and engineering centre expansion at its base in Pune. This expenditure will be carried out over a period of next 12-15 months.

Manpower in India is also being enhanced with planned addition to over 100 engineers to its existing head count.

In continuation to the two US contracts for ethanol projects signed in June, the company has bagged Rs 50 crore orders for supply of technology and engineering (design work) by three more companies in the US.

The company has also been making in-roads into the European markets. The UK order from British Sugar was followed by orders from Bulgaria and Romania.

It will also supply technology and equipment for wheat and corn based plants. Both orders are valued at Rs 11 crore.

UNI