SpiceGas plans 550 auto-LPG pumps

Vol 12, PW 5 (24 Jul 08) News in Brief
     

Little-known SpiceGas Gujarat has announced plans to roll out 550 auto-LPG filling stations over the next five years following its acquisition of Surat-based BND Gas on July 9.

“We are targeting revenue of Rs500cr,â€‌ SpiceGas chief executive Ramesh Chauhan tells this report. “Our service stations will offer end-to-end services including conversion kits, convenience stores and trained mechanics.

â€‌ Phase-I of the expansion programme will focus on Gujarat, Maharashtra, Madhya Pradesh; Phase-II on Tamil Nadu, Kerala and Karnataka. Chauhan tells us SpiceGas is looking at private equity or venture capital options to fund the Rs200cr ($50m) expansion that envisages a mix of dealer-owned and operated auto-LPG pumps and company-owned and operated pumps.

SpiceGas is planning to open 150 pumps in Gujarat and expects 10 in operation by the year-end. For now SpiceGas owns two fully operational auto-LPG pumps only from its BND acquisition: in Bharuch and Anand.