Your take on government initiatives for the oil and gas sector India…
The Indian government has been taking several initiatives to boost the gas sector in the country, several initiatives in the LPG sector to promote the use of clean cooking fuel and reduce reliance on traditional fuels like wood, charcoal, and kerosene. Some of these initiatives are the Pradhan Mantri Urja Ganga project: This project aims to provide piped natural gas (PNG) to households and compressed natural gas (CNG) to the transportation sector in eastern India. The project is expected to cover 1,535 km and pass through five states - Uttar Pradesh, Bihar, Jharkhand, Odisha, and West Bengal; Open Acreage Licensing Policy (OALP): The OALP allows companies to choose the exploration blocks they want to explore for oil and gas. This policy is expected to attract more investments in the oil and gas sector; National Gas Grid: The government is also planning to set up a national gas grid to connect various parts of the country and provide a stable supply of natural gas; City Gas Distribution (CGD): The CGD network aims to provide piped natural gas to households and commercial establishments in cities. This initiative is expected to reduce the dependency on traditional fuels and reduce pollution levels in urban areas; Pradhan Mantri Ujjwala Yojana (PMUY): Launched in 2016, this scheme aims to provide free LPG connections to poor households in rural areas. Under the scheme, eligible households receive a subsidy of Rs. 1,600 for each LPG connection; Expansion of LPG distribution network: The government has also been working on expanding the LPG distribution network in the country by setting up new bottling plants, increasing the number of distributors, and leveraging technology to improve delivery and distribution.
Overall, these initiatives are expected to boost the gas sector in India and increase the share of natural gas in the country's energy mix and have led to a significant increase in LPG coverage and usage in the country, particularly in rural areas, and have helped improve the health and well-being of millions of people by reducing indoor air pollution caused by traditional cooking fuels.
How has your organization performed in the last three years?
Over the past three years, we have experienced a tumultuous journey. In 2020, we faced unprecedented challenges due to the pandemic, but we were able to navigate through those difficult times and ensure the safety of our employees. Despite the obstacles, we emerged stronger from the crisis. In 2021, we ventured into a new manufacturing plant for dry-type LPG Vaporizers in partnership with our German collaborators, FAS, demonstrating our commitment to continued growth and investment. Last year, in 2022, we exceeded our pre-Covid levels and expanded our product portfolio, enabling us to better serve our industrial and commercial clients. We are proud of our resilience and growth over the past three years, and we look forward to continuing to meet the needs of our customers in the future.
Can you please brief us on the various solutions you provide for fuel storage systems and equipment?
We provide a wide range of solutions for fuel storage systems and equipment. We offer LPG tanks and storage facilities for commercial and industrial use. These tanks are designed to store large quantities of LPG and can be customized to meet specific requirements. We provide LPG gas banks, which are multi-cylinder storage systems that are ideal for use in small businesses or households. These gas banks are convenient and easy to use and can be refilled as needed. We also specialize in the installation of LPG and natural gas pipelines and provide end-to-end solutions, from design to installation and commissioning. We offer a range of LPG and natural gas application solutions for commercial and industrial use. These solutions include gas burners, ovens, boilers, and other equipment. We provide fuel conversion services for commercial and industrial customers who want to switch from solid or liquid fuels to LPG or natural gas. We offers a range of gas products, including LPG systems, LPG vaporizers, pressure regulating systems/gas trains, gas leak detection systems, gas flow metering systems, gas filters, and pressure regulators. We conduct periodic testing services for LPG bulk storage tanks to ensure compliance with safety regulations. We offer annual maintenance contracts for LPG systems to ensure optimal performance and reliability.
Our automation and monitoring solutions for gas networks can help customers reduce energy consumption and optimize operations.We also offer design consulting services for gas systems and gas pipeline networks. We provide energy management consulting services for combustion fuels. We conduct skill training programs for the LPG industry to help customers stay up-to-date with the latest technologies and trends. The training programs cover a range of topics, including safety, operations, and maintenance. Overall, we provide a comprehensive range of solutions for fuel storage systems and equipment, which can help commercial and industrial customers optimize their energy consumption, reduce costs, and improve safety and reliability.
How are you planning to leverage the recent allocation for the oil and gas sector in the Budget 2023-24?
The recent allocation for the gas sector in the Budget 2023-24 of the Indian Government presents an exciting opportunity for us. We plan to expand our distribution network: The government has allocated funds to expand the gas distribution network, including piped natural gas and compressed natural gas. We will use the allocation for expanding the gas distribution network to reach more industrial and commercial customers using gas for their heating applications. The government has allocated funds for research and development in the gas sector. We will develop new technologies, products, and services that meet the evolving needs of its industrial customers. We will also collaborate with research institutions, academia, and other players in the industry to drive innovation and stay ahead of the competition.
We are also looking to collaborate with the government to leverage the allocation for the gas sector. We will look to participate in public-private partnerships, joint ventures, and other initiatives to develop new projects and expand the gas sector. This would help the company establish strong relationships with the government and position itself as a leading player in the industry. Overall, We will leverage the recent allocation for the gas sector in the Budget 2023-24 of the Indian Government by expanding its distribution network, increasing production, investing in research and development, and collaborating with the government. These strategies would help the company meet the growing demand for gas solutions in the industrial and commercial sectors and establish itself as a leading player in the industry.
What challenges are the gas solution providers for fuel storage systems and equipment are facing?
Gas solution providers for fuel storage systems and equipment are facing several challenges. Gas solution providers are subject to strict regulations and safety standards set by regulatory bodies. Compliance with these regulations can be costly and time-consuming, and failure to comply can result in penalties and legal action. Fuel prices are subject to fluctuations due to global economic conditions, geopolitical tensions, and supply and demand imbalances. This makes it challenging for gas solution providers to manage costs and maintain profitability. The gas storage and equipment industry is highly competitive, with many players vying for market share. Competition can lead to price pressure and the need for companies to differentiate themselves through innovation, quality, and customer service. The gas storage and equipment industry is constantly evolving with new technologies and innovations. Gas solution providers need to stay up-to-date with the latest trends and invest in research and development to remain competitive. Overall, gas solution providers for fuel storage systems and equipment are facing several challenges related to regulations, volatile fuel prices, intense competition and technological advancements.. To remain competitive, gas solution providers need to adapt to these challenges by investing in innovation, sustainability, and customer service.
Which industry are you looking forth to contribute maximum revenue to your organization in FY2023-24? Why?
We are looking forward to contributing maximum revenue to our organization in FY2023-24 from the HoReCa and Hospitality industry. The reason behind this is that we have recently launched a new compact LPG system with a dry-type LPG vaporizer which is best suited for this segment. The HoReCa (Hotel, Restaurant, and Catering) industry is a rapidly growing industry in India, with an estimated market size of around USD 75 billion in 2021. This industry requires a reliable and safe fuel source for cooking, heating, and other operations. LPG is the preferred fuel for this industry due to its clean-burning properties, easy availability, and lower operating costs. Our new compact LPG system with a dry-type LPG vaporizer is specifically designed to cater to the needs of the HoReCa and Hospitality industry. This system is highly efficient, safe, and easy to operate. It takes up minimal space and can be installed indoors or outdoors, making it ideal for small restaurants, cafes, and hotels. The hospitality industry has also been witnessing a resurgence in demand post-Covid, as people are beginning to travel again, and restaurants and hotels are reopening. This provides an excellent opportunity for us to tap into this growing market and offer our specialized LPG solutions. In addition, our strong focus on customer service and after-sales support has helped us build long-term relationships with our clients, which has resulted in repeat business and referrals. We believe that this, coupled with our new product offerings, positions us well to capture a significant share of the HoReCa and Hospitality market and contribute maximum revenue to our organization in FY2023-24.
What are your growth plans for your organization in FY2023-24?
Our growth plans for FY2023-24 are focused on expanding our organization's footprint across India and beyond. To achieve this, we are planning to establish a stronger sales force in the North and South regions of India. Additionally, we are planning to set up a new international office in Dubai to grow our exports and take on global projects. Furthermore, we have set an ambitious target to achieve INR 50 crore in revenue for FY2023-24. To accomplish this, we will continue to innovate and offer new solutions to our customers while maintaining our high standards of quality and service. We will also explore opportunities to collaborate with other businesses to create new revenue streams and expand our market reach. In summary, our growth plans for FY2023-24 revolve around expanding our presence and increasing our revenue through new initiatives and partnerships. We remain committed to delivering value to our customers and driving sustainable growth for our organization.
