Praj Industries to foray into renewable chemicals sector; stock up by 3 per cent

The shares of Praj Industries climbed by 3 per cent on Thursday after the company announced it was entering into the global renewable chemicals and materials (RCM) industry.

Worldwide, the RCM industry is estimated to have reached US$ 65 billion and within a decade, it is estimated to cross around US$ 200 billion at a compound annual growth rate (CAGR) of 11-12 per cent. Meanwhile, the Asian market is presently pegged at around US$ 25 billion.

Praj Industries is developing technologies to produce bio-based RCMs, which is made from bio-based feedstocks as they are sustainable alternatives to products made from fossil resources.

The company's strategy has been to expand its business horizons by making inroads into the RCM industry through its newly-launched bio-prism portfolio. This portfolio comprises of a variety of bio-industrial products, including bioplastics as a priority, along with cellulose-lignin refinery products and speciality products. These products have applications in the industry sectors such as automotive, packaging, furnishing, construction, agriculture and food.

Praj Industries has already entered into an overarching memorandum of understanding (MoU) with National Chemical Laboratory (NCL) for jointly working on promising project opportunities in the RCM space.

The company's stock closed at Rs 69.25 on Thursday, up by 3.59 per cent or Rs 2.40 per share. The 52-week high is recorded at Rs 132.30 and the 52-week low is Rs 43 on BSE.