Praj signs joint venture with Aker Kvaerner

20 April 2007

Mumbai: The Rs600-crore Praj Industries plans to enter into a 60:40 joint venture with Netherlands-based Aker Kvaerner Netherlands BV.

It is also looking to acquire a Brazilian company to establish a foothold there.

Praj Industries specializes in setting up cane molasses-based ethanol plants and offers technology for a wide range of feedstock, including cane juice and syrup, beet juice and starch-based raw materials such as grains and tubers.

An engineering and construction major, the Netherlands partner offers expertise from concept studies to design, engineering, project management, technology delivery, procurement and maintenance services.

The JV is intended to blend Kvaerner''s execution capabilities and extensive European market knowledge with Praj Industries'' technological expertise.

The company is also setting up an R&D facility about 20 km from its existing premises on the outskirts of Pune, with a capex of Rs40 crore. Funds for the purpose will be met through internal accruals and preferential share allotment.