Adani Gas Limited has signed a definitive agreement for the acquisition of three geographical areas (GAs), namely Ludhiana, Jalandhar and Kutch (East). With this, Adani Gas tally of geographical areas shall now increase to 22.

 

Ludhiana, Jalandhar and Kutch (East) have high volumes potential in terms of demand of more than 6.5 MMSCMD over a period of 10 years. These GAs are under phase 1 of Bharat Mala Pariyojana by the National Highways Authority of India (NHAI), which will further boost the development and volume growth.

 

A statement said that the three GAs shall offer early monetisation opportunity to AGL.

 

Suresh P Manglani, CEO, Adani Gas said, "These 3 geographical areas offer high PNG and CNG volumes together with excellent infrastructure growth opportunities. Adani Gas tally of geographical areas shall now increase to 22. This transformational acquisition shall allow AGL to supply cleaner fuels - PNG in fulfilling much-awaited aspirations of a large number of homes, commercial and industrial consumers, Gurudwara, hotels, restaurants and environment-friendly CNG to automotive consumers in Ludhiana, Jalandhar and Kutch (East) GAs. This initiative by AGL shall further support the vision of central and state governments to provide PNG and CNG to all."

 

"We will aim to fast track the infrastructure developments across all these GAs. These 3 GAs shall add significant high volumes and infrastructure developments and will take AGL to a high growth trajectory. With the strong parentage of AGL, the residents of Ludhiana, Jalandhar and Kutch (East) shall also be the beneficiary of best-in-class CGD networks, operations, maintenance, digital and customer-centric approach with a continued focus on Health & Safety, community development and better returns to the stakeholders," he added.

 

With the addition of these 3 GAs, AGL shall now have a presence in 22 GAs as a standalone entity and additional 19 Gas with JV partner with IOCL aggregating its tally to 41 Gas (74 districts) ensuring AGL's continued leadership in CGD business in India.

 

The transaction is subject to necessary regulatory and other customary approvals, the statement said.

 

In Q2, net profit of the company rose 12.65% YoY to Rs. 135.67 crore as against Rs. 120.43 crore during the previous quarter ended September 2019. However its sales declined 11.58% YoY to Rs. 417.86 in Q2 versus Rs. 472.57 crore in the same period last year.