Praj Industries, player in the brewery segment, plans to invest in research and development, adding manufacturing capacity and an acquisition in the US, which would be finalised by September-end. About Rs 39 crore has been earmarked for these and would be utilised within the next six months.
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. This would involve working with newer media and noted that with this, the investment in R&D would exceed the one per cent mark. It is also adding two additional manufacturing capacities - one would be located near a port and the other in New Mumbai.
The company has 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).