Q1. Could you start by giving us a brief overview of your professional background, particularly focusing on your expertise in the industry?

I am Dinesh Mahajan, and I hold a B.Tech. in Chemical Engineering from UICT, NMU Jalgaon University, where I graduated with First Class with Distinction.

I have more than 20 years of experience across various process industries. From my experience, my core expertise lies in ethanol distillery plants, particularly ethanol production from sugarcane, maize, broken rice, and other sugar- and starch-based feedstocks. Over the years, I have worked extensively on ethanol production processes and complete turnkey ethanol plant projects, from design and engineering to execution.

In addition to ethanol plants, we have expertise in starch plants, solvent distillation plants, chemical separation systems, evaporation processes, dryers, effluent treatment plants (ETPs), water treatment plants (WTPs), blending units, crude distillation plants, waste oil distillation plants, industrial equipment manufacturing, process automation solutions tailored to customer requirements, and ethyl acetate distillation plants.

Q2. The corn starch and derivatives sector is seeing a shift toward larger, centralized, highly automated operations. Does a mid-sized, manually controlled starch plant remain economically viable under current energy and water compliance costs, or is sector consolidation inevitable?

From my experience, corn starch production and its derivative products are economically viable only when the plant operates at a large scale. Given today's market conditions and increasing energy and compliance costs, small and mid-sized starch plants struggle to remain competitive.

In my opinion, a minimum capacity of around 100 TPD is required for a corn starch and derivatives project to achieve sustainable operations and better commercial returns. Larger capacities allow businesses to optimize production costs and improve overall efficiency.

Q3. When an engineering firm expands from general chemical fabrication into high-purity pharmaceutical equipment (reactors, pressure vessels), what are the structural cost and validation barriers (like ASME or cGMP certifications) that prevent rapid scale-up?

This is a very important question. From my experience, when an engineering company expands from general fabrication into high-purity pharmaceutical equipment manufacturing, there is a significant increase in both structural and manufacturing costs.

Typically, the cost of pharmaceutical-grade equipment can be around 40–50% higher than standard industrial equipment due to stricter quality requirements, specialized materials, and higher manufacturing standards. The exact cost depends entirely on the customer's specifications and the complexity of the project.

In my opinion, although the initial investment is considerably higher, the pharmaceutical equipment sector offers excellent growth opportunities. However, successful expansion depends on understanding customer requirements and delivering products that meet the required quality and compliance standards.

Q4. Because you manage an active import/export division for pneumatic valves, smart PLC panels, and motors, what are the current real-world lead times for foreign-sourced automation components?

From my experience, pneumatic valves, PLC panels, and industrial motors are critical components for almost every process industry. For products sourced from international manufacturers, the typical lead time ranges between two and three months.

However, if the equipment is highly specialized or custom-built, the delivery timeline can be longer depending on the technical specifications and manufacturing requirements.

Q5. Given the highly corrosive nature of fermented wash and chemical solvents, what are the financial trade-offs of utilizing specialized metallurgy versus standard carbon steel with chemical inhibitors?

From my experience, corrosive chemicals, fermented wash, and industrial solvents should never be stored in carbon steel tanks because doing so creates significant operational and safety risks.

We always recommend using SS304 or SS316L stainless steel for handling such materials. While the initial investment for stainless steel tanks is higher, businesses typically recover the additional cost within two to three years through improved durability and lower maintenance costs.

In my opinion, stainless steel tanks also offer a much longer service life than carbon steel tanks, making them the more economical solution over the long term.

Q6. In real-world operations, how much does the thermal energy and steam cost of running centrifuges, decanters, and dryers chip away at this secondary revenue stream during periods of high coal/fuel prices?

From my experience, rising coal and fuel prices have become a major challenge for many process industries because energy costs directly impact operating profitability.

One of the most effective solutions is to switch to biomass fuel or install a biogas plant. The biogas generated can be used as boiler fuel, making steam generation significantly more economical.

I have also found that installing heat recovery systems wherever possible helps reduce steam consumption, improve energy efficiency, and lower overall boiler fuel costs. These measures play a significant role in reducing long-term operational expenses.

Q7. If you were an investor looking at companies within the space, what critical question would you pose to their senior management?

From my perspective, before making any investment, I would focus on understanding three key areas.

First, I would evaluate the company's products and assess the long-term market demand for them.

Second, I would review the company's annual sales performance and growth trends to understand whether there is sufficient potential for future expansion.

Finally, I would conduct a detailed technical assessment of the entire project or manufacturing facility. This would include evaluating the plant's operating condition, process performance, product quality, operational data, project management practices, technical documentation, and the condition of each process unit. From my experience, a thorough technical evaluation provides a much clearer picture of the company's long-term investment potential.