Gujarat Gas Company Limited (GGCL) is a 65% subsidiary of British Gas Limited and is engaged in the distribution of natural gas in the state of Gujarat. The company primarily services small and medium size industrial customers. It has a pipeline network of over 1,200 km.
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The company has undertaken a business improvement plan to control costs and boost the top line. These initiatives have resulted in the company significantly increasing its operating profit margin.
Gujarat Gas has commissioned the 73 km Hazira – Ankleshwar pipeline in May 1999. The company has started supplying additional gas through the pipeline to customers in both Ankleshwar and Bharuch.
The company has an extensive distribution network and caters to more than 107,000 domestic customers, 372 industrial customers and 1,468 commercial customers. It is also servicing vehicular customers using compressed natural gas (CNG).
The company has entered into a strategic tie up with Thermax Limited to provide customers with a one-stop solution to their energy requirements. A group company, Gujarat Gas Financial Services, also a part of the alliance, will provide finance facility to the customers.
The company has divested from the LPG business at a profit of Rs 2.8 m. The company has also ceased the operations of Petroleum Infrastructure Ltd. (PIL). The company has made a provision of Rs 75 m to this effect in FY98.
Gujarat Gas is expected to receive additional gas supplies of 250,000 cubic meters per day in FY00. However, sales growth continues to be dependent on gas availability and therefore, it faces the risk of failure in gas supply.
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