Dear Shareholders,
I am privileged to present the 38th Annual Report of your Company for FY 2023-24. Amid
geopolitical uncertainties mounting worldwide owing to prolonged war in Europe and West
Asia, India has showcased a resilient economy with robust domestic demand. India has
surpassed the UK and France to become the fifth-largest economy in the world and analysts
predict that it will overtake Japan and Germany to reach the third spot by 2027. India's
economy draws strength from diverse sectors including IT, Manufacturing & Engineering,
Pharmaceuticals, and Bioenergy. Your company has been able to leverage tailwinds in the
domestic as well as the global market to record strong financial performance.
Today, the world is experiencing climate adversities all around the world. The Global
Risks Report 2024 released by the World Economic Forum (WEF) grades 'Extreme Weather' as
the top-most global risk in terms of severity over the next two years. Heatwaves, floods,
droughts, wildfires, and rapidly intensifying tropical cyclones are upending everyday life
for millions and inflicting billions of dollars in economic losses. 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 ?C above the pre-industrial baseline. The report also states that
Ocean heat content and sea level have reached record highs owing to continuously rising
concentrations of greenhouse gases.
According to the WMO Report, Renewable energy generation surged in 2023, with renewable
capacity additions increasing by almost 50% from the previous year. This indicates the
potential for achieving decarbonization targets and transitioning to clean energy sources
to mitigate climate change.
At the COP28 Climate Action Summit hosted in Dubai, UAE urged countries to actively
participate in global initiatives to decrease carbon emissions. All the countries
participating pledged to transitioning away from fossil fuels in energy systems, to
achieve net zero by 2050. Tripling renewable energy capacity and doubling energy
efficiency by 2030 was the collective consensus at the summit.
The announcement of the Global Biofuels Alliance (GBA) is seen as one of the G20
Summit's significant outcomes under India's leadership. GBA's declared goals are to
increase global cooperation for the rapid adoption and deployment of biofuels. This will
create additional opportunities for your company in the Energy Transition and Climate
Action (ETCA) space.
I am pleased to share some noteworthy achievements of your Company during FY 2023-24.
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. The Raisina Dialogue 2024, India's premier conference
on geopolitics and geoeconomics, invited Praj Industries to address the most challenging
issues facing the global community. During this renowned event, Praj demonstrated thought
leadership on the relevance of biofuels in sustainable development, emphasizing the GBA as
a possible game changer to achieve the goal of net zero.
Bioeconomy has emerged as a promising pathway for sustainable climate action. Your
Company is in the business of developing and deploying technology-embedded solutions that
help conserve the environment through decarbonization and carbon recycling. BioMobility?
and Bio-Prism? are two mainstays of Bioeconomy. BioMobility? is a technology platform
for producing low carbon biofuel solutions and Bio-Prism? is a technology portfolio for
the production of renewable chemicals and materials.
Let me share some of the major achievements in Bioeconomy as a sustainable growth
driver this year. Your company has developed a first-of-its-kind Alcohol to Jet (ATJ)
based SAF demonstration facility and Catalytic Laboratory at the R&D Center in Pune
which was inaugurated by Hon. Union Minister Shri. Hardeep Singh Puri on 20th January
2024. The Catalytic facility is an important element in combining bioprocesses with
catalysis which opens a new path for using fermentation-based products and molecules to
develop its derivatives. This Multipurpose Catalytic Lab will help expedite our research
technologies for the production of SAF, bio-butadiene, and biohydrogen. 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 Food Grade Lactic Acid and Polylactic Acid. To cater to the Energy
Transition and Climate Action business we have set up a cutting-edge Industry 5.0 Mega
Manufacturing facility in Mangalore, Karnataka.
Praj Matrix R&D Centre with over 400 international and domestic patent filings
continues to pursue innovative technology solutions. Our scientists and technologists are
exploring exciting opportunities in energy transition including Bio Hydrogen.
We strongly believe in giving back to society, not as a duty, but as an obligation for
the greater good. As part of its social commitments, Praj has undertaken a project to
create a model Net Zero and Climate Resilient village at Mandede in Mulshi taluka near
Pune. Following the early actions of raising awareness among important stakeholders and
scientific documentation, we have completed clean cookstove installation, waste management
across the village, pilot Eco-STP for liquid waste management, water budgeting and
harvesting. We are steadily advancing towards resilient agriculture practices and clean
energy applications in the village.
I would like to reiterate that your Company is resilient to the geopolitical realities
while maintaining focused on delivering value for all our stakeholders. Biofuels are at a
tipping point, and I have no doubt that it is a concept whose time has just arrived. Your
company is in a prime position to capitalize on emerging prospects and launch itself onto
a new growth trajectory.
I remain confident of your continued support in realizing your company's vision of
making the world a better place.
Dr. Pramod Chaudhari
Executive Chairman
July 2024, Pune