Brief to a consulting firm

Agenda
Corporate Overview
Our Offerings
Background
Market Entry Assessment (Brazil)
Vision and Objective
Recommendations
Outcomes expected

Corporate
Overview

Who We Are?
References across
five continents

Global
Indian
company

Offer customized
solutions

Customer
Centric

Strong focus on
sustainable
development

Socially
responsi
ble
corporat
e citizen

Knowled
ge based
company

End to
End
solution
provider

Technology
backed
solutions

Expertise and
experience
in process and
integration
engineering

Leadership
Innovative and Customized Solutions

11 patents, 3 applied for various

technologies

Over 75% share of market in distillery

and 65% in breweries in India
Over 50% share of business in South
East Asia and South, Central America
(excl Brazil)
Largest Resource base for alcohol
technologies worldwide

Our Offerings

What Do We Do?
Alcohol /
Fuel
Ethanol
Plants

Brewe
ry
Plants

Water
and
Wastewa
ter
Treatme
nt

Bionutrie
nts

Customi
zed
Process
Equipme
nts

Agri
Servi
ces

Over 27 years of experience in process engineering based solutions

Ethanol Plants: End-to-End

Solutions
Fermentation
Engineering

Audit &
FEED
Civil &
Structural

Liquefaction &
Saccharification
Distillation
Dehydration

Distillery
Plant

Technology

Vinasse/slops treatment
& disposal

Equipment
Manufacture &
Supply

Supervision,
Commissioning,
After Sales

Evaporation

Project
Management

Other water/wastewater
management

Background

Praj Brazil Background

Praj Jaragua - a JV with a Brazilian Company, Jaragua Equipamentos
Praj Jaragua team
one expat from Praj
one person from Dedini and
another from Jaragua (for biodiesel).
Engineering support from Praj India
Marketing by the team located there
Praj didnt win any projects despite quoting for many
The company has been wound up subsequently

10

SWOT Analysis of previous attempt

Strengths

Experience of setting up large

Weakness
Dedini/Sermatec/MG established

plants

Brazilian Player viz.

Experience of sugarcane molasses

based and multi feed plants in Lat
Am

Praj considered as a foreign

company

Lower margins for same quantum

Presence in Latam countries

of work
Longer delivery cycle for shipping

Opportunities

from India

Threats

considering there is no feedstock

Competitor offerings were more

Customer preferences were biased
end-to-end including diffusers
towards local providers

challenge

Prajs global design standards not

Market potential is huge

MNCs will increase investments in

Brazil
11

in line with low-cost Brazilian model

Prajs image due to its earlier status

Market Entry
Assessment (Brazil)

12

Vision and Objective

Vision
To capture a 15-20% market share in the ethanol plant and effluent treatment
market within 3 years and 30% market share in 5 years time from the entry in Brazil

Objective
Praj wants to enter the Brazilian market after a detailed study of various aspects
like :
Opportunity Sizing (first gen/second gen)
Business Potential 2013-18
Structure of Market Players in terms of MNCs, Groups, etc.
Technology Mapping
Customer expectations & gaps of current suppliers
Competitive Landscape
Partnerships and acquisition opportunities
Financing and Funding availability including availability of BNDES funding for our
clients
Tax structure within Brazil (including for ethanol industry)
Employment Regulations, Cost and Availability of suitable manpower
Potential of doing business in the region with Brazil as base
Import of goods from India vs. local production. Import of tech
Niche opportunities for Praj

13

Recommendations
Recommendations from the Agency
Entry Strategy including Business Model
Structure of the Entity whether JV, Partnership, Consortium,
Acquisition
Possible partners
Execution strategy including whether to import from india or
not Pros & Cons
Location
Taxes for doing business within Brazil, within Mercasur countries
or non-Mercasur countries
Exit Policy
Dividend repartition and other related corporate matters
Time: 10-12 weeks

14

Financial Resources and Outcomes

Expected
Market share of
15 20 % in 3
years and 30 % in
5 years

Order Values of
minimum size of
Rs. 30? Cr

Max Investment of
Rs. 100 Rs. 150
Cr.?

GVA/Contribution
Margin of 25%
30% ?

ROI 20 %

15

Thank You!

16

Appendix

Brazil is the second largest producer of ethanol with

____nos. mills in operation.
Brazil is also the largest sugar producer and exporter and
the largest ethanol exporter
Brazil produces most ethanol from sugarcane juice directly.
It has the facility to switch from sugarcane juice to ethanol
based on the sugar and ethanol prices.
Due to low sugarcane prices, Brazil has been a competitive
producer of ethanol, directly from sugarcane. This scenario
might undergo change
Over the past five years, Brazil has seen a lot of overseas
investment in the sugar and ethanol business with a
number of Companies, BP, Bunge, Tereos, SRSL (India)
investing
Brazil has been undergoing changes in terms of taxes and
other aspects regards ethanol