Praj Industries Ltd Management Discussions

ANNEXURE1

Overview

Your company, Praj Industries (Praj), is a Global leader in providing technology-embedded solutions spanning across Biofuels, Biomaterials, Energy Transition & Climate Action, Critical Process Equipment & Modularization, High Purity Water Systems, Brewery & Beverages, and Zero Liquid Discharge Systems. Under the principle "innovate, integrate, and deliver," your company has provided a wide range of solutions for process industries, including energy, environment, manufacturing, and pharmaceuticals. Your companys expertise has been continuously demonstrated with a legacy of more than 40 years, as evidenced by the 1000+ customer references built in more than 100 nations across 6 continents.

Your company has a vision to make the world a better place using innovative technology solutions aimed at sustainable decarbonization facilitating reduction in water, energy, and carbon footprints. Bioeconomy has emerged as a promising pathway for sustainable climate action. BioMobility? and BioPrism? are two mainstays of Prajs initiatives in bioeconomy. BioMobility? is a platform of technologies for producing low carbon biofuels and Bio-Prism? is a technology portfolio for the production of renewable chemicals and materials.

Your company provides value to customers with its distinct TEMPO (Technology, Engineering, Manufacturing, Project management, and Operations) model. Its strength lies in the unique approach of Research & Development (R&D) to Design and Deployment (D&D). Your companys cutting-edge R&D facility, Praj Matrix, offers biotechnological solutions to both expressed and implicit needs of clients. Through its customer-centric approach, your company has built a time-tested mutually rewarding relationships with businesses around the world.

Today, the world is witnessing climate adversities all around the globe. The State of the Global Climate 2023 report, released by the World Meteorological Organization (WMO) confirmed that 2023 was the warmest year on record, with the global average near-surface temperature at 1.45 ?Celsius above the pre-industrial baseline. The UAE COP28 Climate Change Summit calls for transitioning away from fossil fuels in energy systems, in a just, orderly, and equitable manner. Tripling renewable energy capacity and doubling energy efficiency by 2030, stated the collective consensus at COP28 to achieve net zero by 2050, aligns well for your company.

The launch of the Global Biofuels Alliance (GBA) is seen as one of the major outcomes of the G20 Summit under Indias presidency. GBA has stated objectives to strengthen global cooperation for the rapid adoption and deployment of biofuels. Your company invited to the special roundtable titled Interaction of Hon Prime Minster with Global Energy CEOs at India Energy Week (IEW) 2024. It provided an opportunity to showcase your company as a leading Indian Industrial Biotechnology company providing technology-embedded solutions for the Global Biofuel sector.

With growing concerns over energy security, nations and governments across the globe are seeking more sustainable sources of energy, marking a clear shift to renewable energy sources like Biofuels. In order to diversify the energy mix with greener alternate fuels, your company is increasing its focus on providing technology solutions for Energy Transition and Climate Action (ETCA) sector including Green Hydrogen, Green Ammonia to name a few.

Under the ambit of the Clean Cooking Alliance your company is working with an international technology company to mainstream liquid bio-ethanol cooking fuel as a fast, safe and affordable alternative. This initiative will significantly transform lives by improving health, protecting the environment, creating jobs, and helping consumers save time and money.

Your company has been Ranked Global No. 1 in the Hottest Top 50 Companies in Advanced Bioeconomy released by the US based Biofuels Digest making Praj the first Asian and Indian company to bag this honour. From Global Rank #34 in 2018 to Global Rank #8 in 2019 and finally achieving the Global Rank #1 in 2024, brings high responsibility and accountability to your company.

In this fiscal year, your company continued to stay on the growth trajectory, owing to the resilient Indian economy and robust domestic demand.

Business Snapshot Bioenergy

Your Companys Bioenergy portfolio comprises of technology solutions for:

• Conventional Biofuels: Low carbon (1G) ethanol produced from Sugary & Starchy feedstocks and Renewable Biodiesel

• Advanced biofuels: Ultra-low carbon (2G) ethanol and Renewable Natural Gas (RNG)/ Compressed Biogas (CBG)

• Next Gen Biofuels: Sustainable Aviation Fuel (SAF)

• Future Biofuels: Biohydrogen, Marine Biofuels

Prajs BioMobility? platform of technologies aim to provide low carbon renewable transportation fuels in liquid and gaseous forms for all modes of mobility, including surface, air, and marine, by processing bio-based feedstocks. Bio-based feedstocks, including sugary (C molasses, B molasses, Sugar Syrup, etc.), starchy (damaged/surplus grains), and lignocellulosic (agri-residues, forestry residues and biomass), are used to produce biofuels.

1st Generation (low carbon) Ethanol: Domestic

National Policy of Biofuels, 2018 was announced by the government with an objective of enabling energy security, lowering carbon emissions, reduce oil imports and saving foreign exchange. It had indicated a target of 20% ethanol blending in gasoline by 2030. However, on the back of strong market acceptance across the value chain, this target was advanced to 2025-26. The policy witnessed a valuable intervention in 2022 with addition of starchy grains to the feedstocks basket.

In order to meet the ethanol blending targets, several measures have been implemented. These include increasing the range of feedstocks used in ethanol production, administering a price mechanism for ethanol procurement under the Ethanol Blended Petrol (EBP) Program, and lowering the GST rate to 5% for ethanol. Additionally, government has also amended the Industries Act (Development & Regulation) to allow for the free movement of ethanol across states for blending, and regularly allowing Public Sector Oil Marketing Companies (OMCs) to procure ethanol. In line with the aforesaid Roadmap, OMCs have achieved 10% ethanol blending during 2021-22 and 12% during 2022-23.

However, there were a few policy changes in FY 23-24 that hindered the momentum. The government restricted the use of excess rice from the Food Corporation of India (FCI) inventory for production of ethanol to keep inflation under control and guarantee sufficient rice supply for the domestic market. However, Ethanol producers were not restricted to purchase rice from the open market. The pricing for OMCs grain-based ethanol was revised upward to assure project viability, which helped to restore trust for both ongoing and new projects.

In another development, anticipating low sugar production, the government ordered ban on use of sugar syrup for ethanol production in the 2023-24 supply year. This move disturbed the supply chain dynamics in the sugar sector leading to the near absence of order book from sugar segment. Your companys domestic bioenergy business witnessed around 90% of its orders book from the starchy feedstock-based ethanol plants. Later the government revised the order that allowed limited use of both sugar syrup and B-heavy molasses and announced an incentive for encouraging ethanol production from C Heavy molasses. In order to promote other feedstocks, the government announced upward revision for ethanol produced from maize.

To help customers mitigate the feedstock challenges, your company has developed solutions for converting existing single feedstock plants to multi-feedstock. Your company is confident that these solutions will help customer better navigate in future any potential uncertainty in feedstock related policies.

In February 2024, state-owned oil marketing corporations (OMCs) with an intention to purchase over 300 crore litres of ethanol, the Ethanol Procurement Group (OEPG), invited bidders to enter into a long-term off-take agreement with upcoming Dedicated Ethanol Plants (DEP). These included the states of Tamil Nadu, Kerala, Andhra Pradesh, Telangana, Gujarat, Rajasthan, Goa, Odisha, and Union Territories of Jammu & Kashmir and Ladakh for the procurement of ethanol. This is a positive development in terms of additional capacity building.

1st Generation (low carbon) Ethanol: International

Your company has successfully completed a milestone ethanol project in Brazil using grain as feedstock. This Hydrous Ethanol Plant has a capacity of 63,000 litres/day, with a potential to double its capacity in near future. Your company is building one more Corn to Ethanol Plant in South Brazil having capacity of 654,000 litres/day of Anhydrous Ethanol or 688,000 litres/day of Hydrous Ethanol. Both orders hold significance as Ethanol Industry in Brazil is predominantly based on sugary feedstock.

Low Carbon Ethanol (LCE) is the building block to produce Sustainable Aviation Fuel (SAF). LCE is finding a strong traction in the US market to support the production of SAF. Your company received its first order for low-carbon ethanol in FY 23-24 and have finished Front End Loading (FEL) studies for other prospective projects. There are a few pending clarifications on incentives for production on low carbon ethanol in the section 45(Z) of the Inflation Reduction Act (IRA). These clarifications are expected to be addressed soon, which will pave way in firming up engineering and equipment supply contracts in FY25. In a noteworthy development, your company has received an order of the Green Field ENA project from a French conglomerate in Ivory Coast, Africa.

The Global Biofuels Alliance (GBA) is developing positively with 22 countries and 12 International Organizations being part of GBA. Your company has already initiated dialogue with 10 countries and 7 organizations.

Under the ambit of GBA, the world is witnessing steadfast progress in the increasing awareness about biofuels and governments across the globe are taking necessary steps towards policy interventions and technology adoption. Argentina observed a positive development in the form of increased percentage mandate, from 10% to 15% of ethanol blending in gasoline. Similarly, Indonesia has recently introduced 5% EBP mandate leading to promising business opportunities in near future.

Services Business

Your companys comprehensive portfolio of products, including yeast, enzymes, and fermentation performance enhancers. Your companys extensive understanding of feedstock, chemistry, microbial biology, and industrial processes helps in formulating these products.

Your companys fermentation performance enhancers boosting plant performance, yields, and product quality, is receiving traction in both domestic and international markets. Your company is also partnering with leading grain-based enzyme provider to provide enhancements in chemicals. Your company is also providing enhancement for sugar industry to help increase the performance of distilleries with year-long feedstock availability, zero contamination and improved portability.

Under the Operations and Maintenance (O&M) service, your company supplies process equipment and provide service for utilities keeping their safety and compliance to maximize production, enhance profitability, and increase revenues. Your company offers plant automation and digitalization services with the Remote Process Monitoring & Support Services (RPMSS) to enhance process efficiency enable predictive maintenance and boost plant yields. To expand customer reach and serviceability, your company is building a robust distribution network in different markets to offer a full range of products and services.

2nd Generation (ultra-low carbon) Ethanol

Lignocellulosic feedstock i.e., agricultural residue, softwood, etc. is available in abundance worldwide and importantly biofuels produced from these feedstocks provide the highest carbon intensity reduction.

Your company has successfully deployed process technology and supplied critical equipment to convert rice straw into ethanol at the IOCL Biorefinery in Panipat, Haryana. Your company is addressing issues related to unspecified feedstock, its availability and mechanical issues in the pre-treatment section. Your Company is defining necessary modifications with the help of team IOCL and partners to resolve these issues. Your company has been able to produce more than a million litres of ethanol till date at this plant.

Your company is also working on two more 2nd Generation Biorefineries for HPCL and BPCL which are expected to be commissioned during FY25.

Scientists and technologists at the Praj Matrix R&D center continue to finetune the intricate technical aspects to further improve the process of 2G enfinity? technology and therefore enhance commercial viability of plant. The team is developing process integration solutions and development of co-product, such as CO2, lignosulfonates, bio-bitumen, CBG, and organic fertilizer, to lower both CAPEX and OPEX.

Your company will intensify its efforts on 2G Biorefineries once your company ramp up the capacity in IOCL.

Renewable Natural Gas (RNG)/ Compressed Biogas (CBG)

The overall landscape for the CBG business has improved in FY 23-24. The CBG Blending Obligation (CBO) has been announced by the government, requiring the blending of CBG in PNG and CNG starting FY 25-26. It is anticipated that CBO mandates will progressively rise from 1% in FY 26 to 5% in FY 29. By 2028-2029, it is expected to garner investments to the tune of Rs 37,500 crores so as to build 750 CBG projects across the nation. India is slowly and steadily transitioning to a gas-based economy.

Your company is happy to share successful commissioning of commercial scale CBG plant based on press mud and rice straw as also achieved benchmark results in plant yield. These plants deploy your companys state of the art proprietary PMStabTM & BMSolveTM bio-solutions to achieve reliable performance.

During the year, both public and private companies have announced to install CBG plants. IOCL has planned to install 30 CBG facilities nationwide. Also, nations top business conglomerates are actively pursuing to set-up CBG plants. Your company received a contract in FY 23-24 to set-up five CBG facilities, and currently in talks to establish more plants for one of the leading business conglomerates.

Your companys customers are now seeking technology solutions for production of CBG using different varieties of agricultural residues, poultry residues, and waste streams. Your companys R&D team is developing a program to identify the optimal way to produce CBG from a range of residues. Your company is incorporating the past learnings to improve the scope and functionality of the solutions in the field after carrying out in-depth trials on different varieties of feedstocks at the demo plant. Your company has already established technology to produce CBG from a range of feedstocks, including rice straw, spent wash, and press mud.

Your companys distinct strengths in understanding of different feedstocks and the knowledge gained from its initial projects, puts it in a strong position to take advantage of new prospects in the CBG arena.

Sustainable Aviation Fuel (SAF)

As part of its BioMobility? platform, your company has made significant progress in technology development for carbon abatement of Aviation industry with the production of SAF using biobased feedstock.

One of way to produce SAF is from ethanol. It takes two litres of ethanol to make one litre of SAF. A total of 14 crore litres of SAF will be needed to meet the nations 1% SAF blending requirement. This translates to annual demand of around 28 crore litres of ethanol. For all international flights, the Indian government has set an indicative goal of 1% SAF blending in 2027 and progressing to 2% in 2028.

In January 2024, your companys first-of-its-kind fully integrated Alcohol to Jet (ATJ) technology based SAF demonstration facility at Praj Matrix was inaugurated at the hands of Hon. Union Minister Shri. Hardeep Singh Puri. This is a milestone achievement in your companys pursuit of sustainable decarbonization of the transportation sector. Building SAF Production Capability from Biomass will lay the pavement for making India an export hub for SAF for the global aviation industry.

Critical Process Equipment & Modularization (CPEM)

CPEM specializes in conceptualizing, engineering & manufacturing of modularized process packages and critical equipment for various process plants.

Your company received significant orders from leading T-EPC companies focused on oil & gas and fertilizers segments. Modularization has driven the growth of the business of your company with significant growth in order intake from leading customers from Oil & Gas and Fertilizers industry across the globe.

Energy Transition and Climate Action

Globally, Energy Transition and Climate Action, or ETCA, is gaining lot of attention. Energy behemoths are putting huge investments into a range of initiatives to meet the rising demand for low-carbon energy. Your companys expertise to build modularized engineering solutions across the technology platforms is giving it a significant competitive edge.

To address the growing opportunity basket from the ETCA agenda, your company has set up a new subsidiary - Praj GenX Limited, an Integrated Manufacturing Facility near Mangalore port which commenced its operations in the last quarter of FY 24.

Energy giants worldwide have committed to investing over $300 billion in clean energy by 2030 as part of their ETCA projects. A variety of projects, including waste-to-energy, low-carbon fuels, carbon capture, and blue & green hydrogen, are being envisaged. Your company has already established a robust pipeline of enquires and is geared up to address opportunities arising from these initiatives. In an interesting development, your company has been chosen as a technology partner to provide modularized solutions for one of the largest Blue Hydrogen projects in Europe.

Zero Liquid Discharge Solutions

Your Company offers a comprehensive range of solutions for industrial effluent treatment, recycling and zero liquid discharge (ZLD) systems to customers across several sectors namely metals, power, specialty chemicals, fertilizers, refinery & petrochemicals, F&B, etc.

Your company has introduced a new modularization approach to the ZLD offerings which has given it a unique technology advantage. Modularization of water treatment plants significantly reduces the civil construction requirements and the physical footprint of the plant. Your company has successfully delivered its first modularized ZLD plant and your company is already in discussions with numerous customers to offer customized modularized solutions.

Your company is leveraging its core competence in Industrial biotechnology and microbiology to develop specialized microbes for processing difficult to treat complex industrial effluent.

Brewery & Beverage

Your Company offers customized plants, equipment & technology solutions to customers in the brewing & beverage industry. Your company has proven its expertise ranging from designing and engineering to installing and commissioning of plants and process equipment. The Apple juice concentrate plant in Himachal Pradesh was successfully commissioned by your company in the third quarter of FY 2023-24.

As the consumption of beer reaching to pre Covid levels, your Company is now witnessing a flow of domestic enquiries and expects the business to show growth in second quarter of FY25.

Praj HiPurity Systems (PHS)

PHS is a wholly owned subsidiary of Praj Industries Limited. PHS offers high purity water systems (WS), Modular Process Systems (MPS) including fermentation-based solutions to customers engaged in pharmaceuticals, sterile formulations, complex injectables & nutraceuticals.

India aspires to play a significant leadership role in the global pharmaceutical supply chain. The capacity building, wide spectrum of medication and research led growth continues to be the key focus areas. With more than $10 bn of drugs going off-patent, more than 12% growth in medicine spending and continued focus on greener technologies like fermentation will continue to interest Pharma giants.

PHS has decided to focus on Sterile formulation products alongside precision fermentation. With 90% OTP (on time performance) and 60% plants delivered before time than committed, PHS continues to drive First to Market strategy of pharmaceutical leaders for innovative drug segments. There was a 300% growth in Fermenters built by PHS over the year with capacities ranging from 100 litres to 100 KL capacities.

High-capacity fermenters are witnessing strong traction both in domestic and international markets. PHS has received the first international order for high-capacity fermenters and completed the first order of a water system for lithium-ion battery plant. PHS also completed three advanced Blood Plasma projects in the current fiscal year

PHS signed a significant contract for its COLD WFI system based on its proven and successful GLACIER™ Technology for a successful & established Biologics client in the US. The need for sustainable solutions with low energy and have low carbon footprint will increase in the Indian subcontinent as it has in developed countries. PHS expect the demand for COLD WFI to grow by a significant double digit over the next 3-5 years allowing PHS to contribute to this changing landscape.

Innovation and R&D

Your companys influence has been reaching new heights in the advanced bioeconomy owing to the cutting-edge technological solutions formulated by its scientists and technologists. Your companys R&D Centre Matrix has an impressive portfolio of 400+ domestic and international patents. It is working towards achieving excellence through two mainstays of Bioeconomy: BioMobility? and Bio-Prism?, facilitating decarbonization of mobility and developing renewable chemicals and materials respectively.

Your company has developed a first-of-its-kind Alcohol to Jet (SAF) demonstration facility at the R&D Center in Pune. This facility is an important element in combining bioprocesses with catalysis. This facility will open a new path for using fermentation-based products like ethanol; iso-butanol; 2,3 butanediol; and Methane, as platform molecules to develop its derivatives.

Your company has optimized biological pretreatment processes to fetch higher volumes of low carbon biofuels like CBG. Your companys innovative Pressmud Preservation technology facilitates round-the-year operations with a consistent yield of biogas in CBG plants. In another development, a promising feedstock, Napier grass, is under the testing phase at your companys R&D center, Praj Matrix. With initial positive results your company expects to deliver technology solution for this feedstock by August 2024. The unique offerings to its customers, puts your company on a leading position in the market.

Your companys Bio-Prism? platform includes an emphasis on Bioplastics, a suitable sustainable solution for replacing single use plastics. Your company has advanced the development stages for biopolymers- Polylactic acid (PLA) and Polyhydroxyalkanoates (PHA).

Your company has set up a first-of-kind demonstration facility at Jejuri, on the outskirts of Pune, to accelerate the commercialization of bioplastics. The first technology that will get scaled up at this facility is Lactic acid which eventually will polymerize to PLA. This pilot facility will be up and running by August 24. The interim union budget 2024 provisions to boost the biomanufacturing sectors complement your companys efforts in the Bioplastics sector.

In continuation of the last years MoU with the Institute of Chemical Technology (ICT), your company has set up, "Parimal and Pramod Chaudhari Centre of Excellence and Innovation for Biopolymers" (PPC-CoEI). This State-of-the-Art laboratory will help develop novel methods & standards for biopolymers characterization, processing, and modification at ICT. The center has taken up application development of bioplastics, viz. PHA and PLA, as its first collaborative project.

Your company is also working to develop biorefinery coproducts that will complement 1G & 2G ethanol plants. Taking note of the growing popularity of Plant-based proteins worldwide, your company has developed technology for extraction of protein from Rice used for ethanol production. Lignin is a similar important co-product from 2G feedstocks. Your company has developed technology for conversion of the lignin into various value-added products including Bio-bitumen. Your company has successfully demonstrated this product through the road built in Gujarat using its Bio-bitumen. This road has completed two years and performing well enduring all seasons.

Your company has promised to find new ways to decarbonize and recycle carbon. The guiding principle for technology development is Technologies with lowest Carbon intensity and Best in Class.

Manufacturing Capability

Your Companys manufacturing capability is substantiated by a multi-disciplinary engineering team, world-class manufacturing facilities at four different locations with excellent connectivity to ports and highways. These are located at Sanaswadi and Wada in Maharashtra, Kandla in Gujarat, and Padubidri in Mangalore.

Sanaswadi, Kandla, and Mangalore facilities are approved by global multinational and EPC companies for the supply of equipment and skids. The facilities are accredited with ASME U & U2, R, and NB Registrations.

The ASME BPE-compliant facility located at Wada serves clients in the pharmaceutical industry.

With utmost importance to employee safety, all the facilities, including project sites adhere to Health Safety and Environment (HSE) norms.

With concerted efforts in value engineering, manufacturing excellence initiatives and quality programs, your Company is enhancing its productivity and capacity from existing infrastructure. The latest manufacturing facility at Mangalore is the state-of-the-art Industry 5.0 facility that plans to achieve operational excellence with cobots aka human and robot coexisting on the shop floor performing logical and iterative tasks respectively.

Focus on institutionalizing best industry practices, the Zero D program that includes Zero Defect in Quality, Zero Delay in critical milestones of project schedule, Zero Deviation from specifications, systems, processes, and budget, and Zero Damage to people and planet has helped rollout higher volumes of quality products. Your company has been able to leverage the strong supply chain network and vendor base to optimize delivery. As part of the ESG initiatives, your Company has brought in a relentless focus on sustainable supply chain by helping the MSME vendor base to upgrade their process and practices.

Digitalization

Your Company makes a continued effort to adopt new technologies that help in process improvements to deliver customercentric solutions. Remote Process Monitoring Support Services (RPMSS), your companys unique remote plant monitoring service that leverages Industry 4.0 technologies to deliver reliability to customers plant operations. By offering real-time data analytics insights for tactical, strategic, and operational level actions, it enhances plant performance. Your company has taken internal digitalization initiatives like PRIDE-Praj Integrated Design Engineering, Praj-Gatimaan (SCM) and others that will help in achieving improved process efficiency and enhanced capacity.

Human Capital

Your company focuses on the employee life cycle journey to ensure talent attraction, development, & engagement and to make it ready for growth. The Human Capital Management (HCM) function is core to the growth of business, and it ensures organizational effectiveness. The focus is on skilling-upskilling talent, exploring new ways to attract and retain talent, and ensuring their wellbeing. The structural leadership development program aims at nurturing tomorrows leader and ensure your companys readiness for the future.

Your company is promoting talent acquisition through Walk-In Drives, retaining current employees, and focusing on succession planning to build a next-level talent pipeline for critical positions. Your company is actively fostering talent and organizational development through ongoing learning & leadership development initiatives by partnering with reputed institutes and training agencies to enhance competencies and unleash potential in its workforce.

The overall growth across the bioenergy and ETCA space has provided your company with enormous opportunities to explore unique avenues of talent attraction and retention. Your company is in the phase of designing exciting career paths through lateral movements across the functions. Your company is enhancing the entry-level talent pipeline by implementing a structured Training and hiring programs for students from premium Engineering & Non-Engineering colleges, thereby creating structured career paths for them.

As a part of your companys efforts towards building a womens talent pipeline, efforts have been taken towards hiring female employees at mid-senior level with regional diversity across functions. Your company has implemented a digitalization initiative named Praj Sparsh for Human Capital functions to provide seamless employee lifecycle experience.

Various Employee awareness programs were organized to emphasize the significance of workplace safety among employees. Your company implemented various employee engagement initiatives such as Team Outbounds, Hi-Tea with Leadership, social and cultural gatherings, among others.

Employee communication through Townhall meetings, periodic webinars, quarterly connect programs, and induction programs ensure company developments are communicated and employees get opportunity to interact with the Chairman, CEO & MD, and Leadership team.

Awards & Recognition

In FY 2023-24, Your Company was bestowed with the following awards, certifications, and accolades:

• Prestigious award in the field of sustainability and innovation by the esteemed ELSC Leadership Award

• Ranked 1st in Biofuels Digest Global Hottest 50 Companies in the Bioeconomy 2024

• Award for Excellence in Export 2022-23 in the category of Engineering & Metallurgical Products organized by the Kandla Special Economic Zone (KASEZ)

• "Act of Compassion Award 2024" in the category of Environmental Sustainability

• "Act of Compassion Award 2024" in the category of Women Empowerment

• "Distinguished Service Award" at Rotary CSR Awards 2023

• Best Supplier Award in the Lead category by Baker Hughes

In FY 2023-24 Praj Executive Chairman Dr Pramod Chaudhari received following awards:

• Atal Sanskruti Gaurav Award 2023

• Prestigious Fellowship from Indian National Academy of Engineering (INAE) 2023

• Lifetime Achievement Award 2023 by Indian Institute of Material Management (IIMM), Pune

• Sustainable Crusader Award 2023 at JP Shroff Foundation

• Dr. Ramkrishna Gopal Bhandarkar Award 2023 at Pune Prarthana Samaj Award Ceremony

• Hall of Fame Award 2023 at Pro MFGs CuPID Conference & Award Ceremony

• Honorary Doctor of Science by Dr. D Y Patil Vidyapeeth, Pune

• Lifetime Achievement Award from Indian Institute of Chemical Engineers (IIChE), Pune

• Satara Bhushan Purashkar 2023

• Eminent Engineer Award 2022 by Engineering Council of India (ECI)

• Udyog Ratna Award 2024 at Mahatech 2024

• Dr. Mohan.I. Patel Industrial Research Leadership Award 2023.

Future Outlook

COP28 Climate Change Summit held in Dubai, UAE closed with an agreement that signals the "beginning of the end" of the fossil fuel era by laying the ground for a swift, just, and equitable energy transition, underpinned by deep emissions cuts and scaled- up finance. The COP28 agreement calls upon countries to contribute to tripling of global installed capacity of renewable energy and doubling annual improvements in energy efficiency by 2030. COP29 Climate Change Summit that will convene from 11 to 22 November 2024 in Baku, Azerbaijan will continue the global quest to sustainable and green energy transition.

The Global Biofuels Alliance (GBA) that was launched during Indias presidency at G20 aimed to promote biofuels as an important element of energy transition while fostering energy security, and economic growth. As a president of G20 this year, Brazil also a driving force behind GBA, is expected to further boost the global momentum for biofuels. GBA will facilitate the development, adoption, and implementation of internationally recognized standards, codes, sustainability principles, and regulations to incentivize biofuels adoption and trade.

Driven by the imperatives set forth at the COP28 Summit and the strategic direction provided by the GBA, the Global Biofuel Industry stands at a transformative juncture. With international cooperation, technological innovation, and sustainable practices, biofuels are poised to become a cornerstone of the global energy transition, significantly contributing to the reduction of greenhouse gas emissions and help to achieve the Net Zero Goals. Indias leadership across policy, technology & ecosystem development can benefit the larger world & help include the Global South in this important journey.

Your Company being a flagbearer of industrial biotechnology, has a unique opportunity to harness the potential of the GBA for its growth and global impact. This alliance signifies access to a global market for biofuel technology and solutions, alignment with international biofuel policies and regulations and collaboration opportunities for research and innovation.

The GBA underscores the commitment to biofuels, including Compressed Biogas (CBG). The Indian government has been actively promoting CBG as an alternative energy source. Mandating a 5% blending of CBG with compressed natural gas (CNG) and piped natural gas by FY29 further accelerates its adoption. CBG is poised to play an increasingly significant role in the biofuels market, driven by the global shift towards decarbonization and sustainable energy.

With a focus on regenerative principles and an objective to advance Green Growth, the interim financial Budget presented this year included new scheme to promote Bio-Manufacturing to facilitate the environment friendly alternatives like Biodegradable polymers & plastics.

Your company remains optimistic about the continued development of the potential across the offering in Renewable Biofuels and Renewable Chemicals & Materials. With supportive policies, technological advancements, and growing market awareness, the Bioenergy and Bio-Manufacturing sector is poised for significant growth and diversification in the future.

Details of significant changes (change of 25% or more as compared to immediately previous Financial Year) in Key Financial Ratios along with detailed explanation therefor, required vide Part B of Schedule V to SEBI (Listing Obligations and Disclosure Requirements) [Amendment] Regulations 2018:

Standalone Praj	UOM	31-Mar-24	31-Mar-23	Variation	Major reason for variance
Debtors Turnover	Days	87	79	10%	N.A.
Inventory Turnover	Days	69	71	-3%	N.A.
Interest Coverage	Times	N.A.	N.A.	N.A.	N.A.
Current Ratio	Times	1.60	1.45	10%	N.A.
Debt Equity ratio	Times	N.A.	N.A.	N.A.	N.A.
Operating Profit Margin	%	11.25%	9.19%	22%	N.A.
Net Proft Margin	%	9.38%	7.54%	24%	N.A.
RONW	%	24.10%	24.09%	0%	N.A.

Forward Looking Statements:

Statements in this report, particularly those which relate to Management Discussion and Analysis describing the Companys future plans, projections, estimates and expectations may constitute forward looking statements within the meaning of applicable laws and regulations. Actual results might differ materially from those either expressed or implied.