MUMBAI: Praj Industries on Thursday announced its foray into developing technologies to produce bio-based renewable chemicals and materials (RCM).
RCM produced from bio-based feed stocks are sustainable alternatives to products made from fossil resources.
Following the announcement, shares of Praj Industries jumped 3.6% to close at ₹69.25 on the BSE.
The company's executive chairman, Dr. Pramod Chaudhari, said Praj was open to exploring newer business models with strategic partners.
Through RCM, the company has launched a new portfolio called Bio-Prism which comprises variety of bio-industrial products including bio plastics as a priority along with cellulose-lignin refinery products and specialty products.
These products are used by companies in automotive, packaging, furnishing, construction, agriculture and food sectors.
The RCM industry worldwide is estimated at $65 billion and over a decade, is likely to cross around $200 billion at a CAGR of 11-12%. The Asian market is pegged at around $25 billion.
Praj has signed a memorandum of understanding with National Chemical Laboratory (NCL) for jointly working on promising project opportunities in the RCM space.