The Hindu Business Line : SpiceGas acquires BND Gas

Ahmedabad, July 9 SpiceGas, a fully-integrated company of SpiceEnergy Group, on Wednesday announced the acquisition of a majority stake in Surat-based BND Gas for an undisclosed amount.

SpiceGas plans to rename the merged entity as SpiceGas Gujarat. Mr Raman Chauhan, Chief Executive Officer of SpiceGas, and Mr Bhavesh Desai, Managing Director, BND Gas, signed the agreement in Surat, according to a release.

Mr Chauhan said SpiceGas would embark upon a nationwide Rs 200-crore AutoLPG gas fuelling station project, beginning in Gujarat and moving to Maharashtra and Madhya Pradesh initially. With further development, it would be expanding to Tamil Nadu, Kerala, and Karnataka.

“The company is expected to roll out 550 AutoLPG fuelling stations generating Rs 500 crore of sales revenue,” he said. According to Mr Chauhan, due to the rising cost of crude oil on the international market, it would be difficult for the Government of India to continue its high subsidy payments to maintain current pricing levels for petrol, diesel, and CNG without affecting other crucial government programs. “Auto LPG, a free market product with no subsidies, is 40–60 per cent cheaper to fossil fuel and produces 20 per cent less carbon emission,” he said.

The full-service stations of SpiceGas would offer end-to-end services including conversion kits, convenience stores as well as trained mechanics.

More Stories on : Mergers & Acquisitions | Petroleum

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page