Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2019 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.

Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
IGL SWOT Analysis-III - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  


Nov 26, 2007

In the previous articles on SWOT analysis of Indraprastha Gas Limited (IGL), we looked at its strengths and weaknesses. In this article, we continue our analysis with a study of the opportunities available to IGL. Opportunities

Maintaining the dominant market position in NCT of Delhi through capacity expansion and increased coverage
In addition to the natural growth of public transport vehicles in Delhi, IGL can expand its CNG distribution network to further reduce the load on the existing CNG stations and make them comparable to a petrol or diesel retail outlets in terms of reach. This is also required to create the required comfort for private vehicle owners and encourage them to consider CNG as a fuel for running their vehicles. The company can also increase its PNG customer base by expanding its coverage.

Creating public awareness about the benefits of using natural gas
CNG is an environment friendly automotive fuel. At present, it is more economical than petrol and diesel. PNG is a safer, reliable (uninterrupted supply), convenient to use (no need to order gas cylinder every time) and cheaper alternative to LPG (currently being sold cheaper than LPG on the basis of calorific value). IGL can invest in enhancing the public awareness about the benefits of usage of CNG and PNG for consumers leading to increased adoption of natural gas.

Further consumer acceptance and market share for PNG by attractive pricing
Attractive pricing, when combined with other benefits of PNG over alternate fuels such as LPG and Light Diesel Oil, will enable IGL to penetrate the market and capture a significant share of the market over time.

Continue leveraging the domain expertise of promoters
GAIL has expertise in the field of gas transmission and project implementation while BPCL has an established track record in project management and marketing / retailing of petroleum products. IGL can continue to leverage their strengths to plan and implement its network.

Selective expansion beyond NCT of Delhi
After pioneering the adoption of CNG on a large scale, IGL has the opportunity of expanding its operations in areas adjoining Delhi such as NOIDA including Greater NOIDA, Gurgaon and Faridabad.

Enhance competitiveness by adapting to industry trends and regulatory changes
Having started out as the sole producer and marketer of CNG to the automotive sector in the NCT of Delhi, IGL has been able to utilize the growth impetus provided by the Supreme Court directives on usage of clean fuel by the public transport sector and expand its network to capture the opportunity. In the future, the company will have to keep abreast with industry trends in terms of operating and technical parameters and be able to adapt to changes taking place in order to prosper further.

We shall continue with the SWOT analysis in the next article.

To Read the Full Story, Subscribe or Sign In
To Read the Full Story, Subscribe or Sign In

Get the Indian Stock Market's
Most Profitable Ideas

How To Beat Sensex Guide 2019
Get our special report, How to Beat Sensex Nearly 3X Now!
We will never sell or rent your email id.
Please read our Terms


Feb 19, 2019 (Close)


  • Track your investment in INDRAPRASTHA GAS with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks