Gujarat Gas Net Plunges To Rs 4.78 Cr

Gujarat Gas Company Ltd (GGCL), the largest private sector gas distribution company in India, has recorded sales of Rs 143 crore for 1997-98. While sales rose 25 per cent, the company's net profit declined sharply to Rs 4.78 crore. Dividend was maintained at 40 per cent.

F B Virani, Gujarat Gas managing director, said earnings per share stood at Rs 3.72 with the net worth of the company being Rs 72.26 crore.

British Gas Plc has a 60 per cent holding in Gujarat Gas and plans to hike its stake by acquiring five per cent from Hrishikesh Mafatlal. British Gas had won the bid in the face of fierce competition from three other majors _ Enron, Pacific Enterprises and Bharat Petroleum Corporation Ltd (BPCL).

Virani said a 73 -km-long pipeline from Hazira to Ankleshwar was being laid at a cost of Rs 120 crore. The company currently supplies gas to nearly 91,000 customers including domestic, industrial and commercial users.

Hrishikesh Mafatlal, vice-chairman of the group, is restructuring the business to focus on textiles. GGCL has entered into a joint venture with BPCL to set up infrastructure at minor ports and they have set up a port at Okha in Gujarat where 100,000 tonnes of LPG will be imported.

Besides, GGCL has another joint venture with UGI Meters Ltd _ part of the British Hanson group _ to make meters to monitor the consumption of gas.

GGCL already has an MoU with Enron to set up an LNG terminal at Amreli in Saurashtra which is expected to be ready by 2001. The gas imported through this terminal is to be used for the power plant for increasing the distribution network of piped gas in other regions of Gujarat _ from Vapi to Veraval in Saurashtra. Besides, GGCL has also bid for a 50 MW plant in Gujarat to be built at a cost of Rs 200 crore.