Praj Ind. Chairman Speech

Chairman’s Message

It is my privilege to present the 33^rd Annual Report of your Company for FY 2018-19.

Besides completion of 35 years of glorious journey, the year also coincided with Silver Jubilee year of Praj''s listing on the stock exchange. I would like to gratefully acknowledge your continued patronage and encouragement throughout this enthralling journey.

To combat evils of climate change, nations are working towards sustainable low carbon economy. By developing innovative decarburization solutions using Circular bio economy, Your Company is playing a very crucial role in this regard. Circular bio economy implies processing biological resources for value creation by way of renewable energy and products, and whilst in use recover and regenerate products as well as materials at the end of service life.

Our vision is expected to result in threefold benefits viz. environmental, economic and social. It reduces carbon footprints, contributes to economic growth, productivity and competitiveness of the country. As for society, circular bio economy plays an important role by boosting rural economy by way of job creation and additional income source for farmers.

I am pleased to share that Your Company''s endeavors in bio industrial space have received a global recognition by way of 8th rank from last year''s 34^th in the list of "Hottest 50 companies in the Advanced Bio Economy 2019" as released by industry''s leading publication ''''Biofuels Digest", USA.

Praj''s state-of-the-art ''Innovation Centre''- Praj Matrix, successfully completed 10 years of operations. Over the past decade, Praj Matrix has developed and commercialized futuristic technology solutions that have helped your Company to maintain its leadership position in the bioenergy space. With renewable chemicals gaining increasing acceptance globally, especially in packaging, cosmetic, furniture industry among others, our scientists at Praj Matrix are striving hard to introduce new molecules and enhancing techno-commercial feasibility for increased usage of renewable chemicals.

Your Company continues its R&D endeavors towards improving commercial viability of 2^nd generation smart integrated bio refinery. This bio refinery has capability to process various feed stocks such as Rice (paddy) Straw,

Wheat Straw, Corn Cobs & Corn Stover, Sugar Cane bagasse & Cane trash, Cotton stalk etc. to produce multiple products viz. Bio-ethanol, Compressed Bio Gas, Bio fertilizer and variety of Bio chemicals, etc.

For the flagship bioenergy business, this has been an eventful year as it witnessed various favorable steps by Government of India in terms of new policies. The industry is showing buoyancy as we see increasing number of enquiries.

This year, in line with GOI''s initiative SATAT, your Company expanded its bio-energy basket by adding Compressed Bio Gas (CBG) technology solution that uses biomass and different agri waste as feedstock. CBG is poised to play a key role in greenhouse gas (GHG) reductions in addition to facilitating India''s pursuits for energy self-reliance. We expect the new Government will not only continue these policies but also step up them further.

Outlook for Engineering and High Purity business segments is promising. These businesses have entered newer customer segments and geographies. With strong focus on collaboration, your Company has secured preferred partner status with leading technology licensors and global EPC companies.

While closing, I wish to reiterate that Your Company will continue to relentlessly focus on creating and delivering value for customers to capitalize on the opportunities, both in domestic and international markets.

Your Company is leapfrogging to make significant contribution towards opportunities of new India.

I remain confident of your continued support in realizing company''s vision of making the world a better place.

Pramod Chaudhari

Executive Chairman May 2019,

Pune