Mumbai: Praj Industries Ltd has formed a joint venture with Brazil's Jaragua Equipamentos Industriais Ltd. to offer engineering, procurement, construction and manufacturing services for the ethanol industry.
Praj will hold 54 per cent in the venture to be based in the Sao Paolo state in Brazil. The Brazilian partner will hold the remaining stake, Praj said in a statement.
The joint venture will provide Praj an entry into the global ethanol market, the statement added.
The new venture will provide the entire gamut of services right from
extraction of sugarcane juice to ethanol production, Praj Industries chairman Pramod Chaudhuri said in the statement.
Jaragua is an engineering, procurement, construction and manufacturing firm with experience in oil & gas, petrochemicals, energy and sugar business.
Jaragua employs over 1,000 personnel in Brazil and has one of the largest manufacturing facilities in that country. Jaragua is also expanding its manufacturing facilities in north-east of Brazil in the state of Alagoas.
The joint venture company will employ a number of Brazilian nationals, including in the top management. Praj has already set up an office in Sao Paolo.
Brazil is a pioneer in the application of ethanol as a transport fuel blend.