Praj Industries (Praj), a biofuels technology developer and manufacturer of equipment for breweries and distilleries company, has acquired majority stake of 50.20 per cent in Mumbai-based Neela Systems Limited for Rs 64 crore. Future arrangements provide for further increase in stakes by Praj.
Neela is a Mumbai-based company having business interests in water treatment and modular process systems, focused on bio-tech, pharma, lifesciences and cosmetics industries. "Although Neela will now become a subsidiary of Praj, it will continue to operate as an independent entity," the company said in a statement.
Commenting on this development, Pramod Chaudhari, chairman, Praj Industries said, "Praj was scouting for acquisitions in the area of water and waste water treatment space since it entered the space in early 2010. Neela is a good fit as it addresses areas wherein Praj wants to build a stronger presence, globally."
Established in 1989 by Himanshu Shah, Neela has a turnover of approximately Rs 90 crore, including exports. It is a leader in high purity water segment. Neela has a manufacturing facility at Wada, near Thane. The Company has been growing and clocking profits over the years. The global reach and involvement of Praj is expected to enable accelerated growth for Neela.
According to Praj, the pharma and F & B sectors have been showing strong growth in India and emerging economies. These sectors will see further expansion. As per the study conducted by Praj on business opportunities in W & WWTP applications, these sectors are major focus areas as it has very specific requirement of high purity water and critical waste water treatment. Neela is a niche player in the high purity water treatment for the bio tech, pharma, life sciences and cosmetics. This acquisition will provide Praj with a deeper and wider penetration into the fast-growing, specialized pharma and life sciences segment.