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Gujarat Gas Earmarks Rs 1,100 Cr To Beef Up Its Operations

NSE and BSE-listed company, which registered a turnover a Rs. 5,050 crore, is aiming to grow at a CAGR of 10-12% over next 3-4 years

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Gujarat Gas Limited (GGL), India's largest City Gas Distribution (CGD) company, will be investing Rs. 1,100 crore over the next few years for setting up CNG stations and laying pipelines at various cities and districts. Established in 1980, the Ahmedabad-based firm operates primarily in Gujarat and has recently extended its network in Dadra & Nagar Haveli and Thane district (excluding already authorized area) which includes Palghar area also. Owned by Gujarat State Petroleum Corporation (GSPC), GGL caters to approximately 11.60 lakh residential, close to 12,000 commercial & 3,000 Industrial customers. It also services around 6 lakh plus vehicles through its network of 252 CNG stations spread across Gujarat.

Dr T. Natarajan, JMD, GSPC Group told BW Businessworld, “In the last two years, the company has invested more than Rs. 1,100 crore in project expansion and would continue to invest at a similar pace for the next 4-5 years. It continues to invest into pipeline network/CNG infrastructure to reach out to every possible consumer in all the segments with a priority to service PNG & CNG segments. In the last couple of years, the company has commissioned its supplies to many key markets including Jamnagar, Bhavnagar, Jambusar, Botad, Dahej, Kutch (W), Dadra & Nagar Haveli and Thane Geographical Area. It also plans to expand its CNG distribution network by adding around 200 CNG stations in next three years. Our state government has embarked on an aggressive expansion plan to extend CGD network to every possible district of the State. As on 31st March 2017, our gross block was Rs. 5,916 crore.”

The NSE and BSE-listed company, which registered a turnover a Rs. 5,050 crore, is aiming to grow at a CAGR of 10-12 per cent over next 3-4 years. While 65 per cent of its business is derived from industrial segment, 25 per cent is from household and the remainder from automotive verticals. “Our topline is a function of price which depends a lot on the natural gas prices in international & domestic markets. However, we believe that the area we operate has a huge potential and expected to see robust growth in all our verticals.”

It is to be mentioned that GGL is the largest city gas distribution company of India in terms of volume sold, customer base and area of operation. GGL is the only gas distribution company in India which services widest range of natural gas applications – retail industrial customers, commercial customers, non- commercial customers, residential customers and CNG users. With almost 28 years of its existence, it has been credited with several pioneering concepts in CGD sector in India. Its pipeline distribution network covers 22 Districts spread across 96,000 square kilometres with a pipeline network of over 20,000 km. 

Natarajan further added, "With its pioneered model of flexi-sourcing of gas from diverse suppliers, GGL has maintained its track record of uninterrupted supplies thus ensuring supply security for the company’s customers. In pursuit of making natural gas the safe and preferred energy solution, GGL’s network has been geared with the one of the best safety technology following global standards. GGL will explore all the opportunities to expand its network organically as well inorganically to serve the society.”

He added, GGL is committed to reaching out to every possible natural gas user in its expanded geographical area of Gujarat, Dadra & Nagar Haveli and Thane District. The company believes in promoting the use of clean, green and efficient fuel for the small and medium enterprises (SMEs), and most importantly to residential and automobile sectors.”

Besides serving the largest base of residential & CNG customers, the company delivers an environment-friendly energy solution to a wide range of industrial applications thus replacing polluting fuels like Coal, Petcoke, Furnace Oil, Wood, Thermopack, etc. Some of the key industries it caters to are Chemicals, Pharmaceuticals, Dyes & Intermediaries, Textile, Glass, Ceramic, Tiles, etc. Going forward, it will be catering to other adjacent industries in the medium to long-term.


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