We have delivered on the objectives the Company had set out for itself
for the fiscal 2011-12. While the top line and performance has been in
line with our expectations, the margins though improving, need further
attention. We will be taking this up during the coming year. Your
Company has shown great resilience in the face of a global slowdown .
In fact, resilience is ingrained in your Company''s fabric which
allows it to endure tough times and bounce back, consolidate even
against challenges, grow in the face of adversity and sustain the
future. Just like the five elements'' of nature.
Your Company is an amalgam of various experiences and expertise. On one
side, it is an engineering and projects Company given the fact that we
undertake a large number of projects in which our process engineering
plays a critical role. On another, we are a biotech Company, as the
process solutions we offer encompass biotech platform, which are honed
at Praj Matrix, our R & D Center. Each area of expertise offers
opportunities that will enhance our growth prospects. We will examine
and build on each skill set for our future growth.
On the process engineering side your Company did undertake two new
business lines over the past two years. Critical Process Equipment and
Water & Wastewater Treatment Systems. The challenge now is to quickly
integrate and scale up in the shortest time span. The best way is to
consolidate and grow simultaneously. In line with this thought we have
already resourced both the business lines adequately.
Our acquisition of Neela Systems with its niche business model of
serving high purity water segment is proof of the Company putting its
money where it can realize value.
To deliver on all aspects of the growth potential, your Company is
working on a strategic growth plan. As we complete this plan, we will
be happy to share the same with all.
We are also evaluating play in the bio-chemicals sector which is an
outcome of our R & D focus. Praj Matrix has been working on various
processes and biotech agenda which includes bio-chemicals, health &
wellness and nutraceuticals. We are now in the process of developing
business models for various opportunities. An identified team is
developing a blue print for ''to-market'' strategy. The biochemicals
market itself is a trillion dollar opportunity. It is expected to be
the next frontier of technology play.
Most importantly, on the lignocellulose biomass to ethanol front, the
Board has given an in-principle consent to move ahead with a plan to
set up a commercial scale demo plant which will be a technological feat
in itself. This is expected to put your Company on the global map of
The Company has endured tough times over the last two years. We are now
back on the growth path. It is time to make the future sustainable.
Executive Chairman Pune, May 2012