Despite the turnaround expected around September 1999, all the cash losses of the company will not be wiped out this year but could take place only during 2001. The sales projection for 1999-2000 is Rs 55 crore and a profit before tax of Rs 2 crore.

Fuelling this second coming among other things is a $6 million brewery order from Africa. Repeat orders from Fosters and IDV too are encouraging signals for the company. The strategy being brewed at Praj House is developing new markets, introducing new products and adding a service edge.

Future growth would be coming from its new operations in South America and Africa. The company is also entering the market with a new breakthrough technology in effluent treatment plant for distilleries which will be out in three tofour months. The company is also ready with a package of fuel alcohol plants to convert normal alcohol to fuel alcohol.

Praj chairman and managing director Pramod Chaudhari said the focus for Praj will now be on its core strength in alcohol technology, plant and equipment and the brewery plant business. On last year's downtrend Chaudhari says, "the diversification programme did not bear fruits and instead added to the losses and reduction in revenues". Consequently, the turnaround process was initiated in 1998.

The company decided to exit from non-core businesses and went through a downsizing programme. Manpower was reduced by 100 while break-even sales level was brought down by 20 per cent. The company carried out some financial re-engineering and is infusing funds to the tune of Rs 7 crore by way of increasing equity through private placement. The promoter's share would come down to 40 per cent after this.

Among the other initiatives is adding the service component. The company will be undertakingservices such as consultancy and technology audit to existing distillery plants and suggest solutions for modernisation and upgradation.

"This is a move from hardware to knowledge-ware," says Chaudhari. Two technical audits are already in progress. "The audit business will augment revenues and also add to the company's future prospects," says Chaudhari. In the pipeline are strategic partnerships with midsize energy companies in US and Europe.

To move up the value chain and leverage on its strength in engineering, the company has made an entry into the bio-pharma systems and fruit processing plants business. To upgrade its expertise the company is going in for a ASME certification for engineering and fabrication. The computer systems are being overhauled. Around Rs 2.6 crore will be invested in upgradation. Chaudhari promises a spirited performance with this turnaround strategy.