New Delhi: Torrent Gas on Tuesday said it has signed an agreement to take over Sanwariya Gas which has a licence to retail CNG to automobiles and piped gas to households for cooking purposes in Mathura. The acquisition cements Torrent’s city gas distribution network that is now spread over 33 districts in seven states and one union territory.
“Torrent Gas, through its wholly-owned subsidiary, has signed a share purchase agreement (SPA) with the promoters of Sanwariya Gas for the takeover of the company which has the authorisation from Petroleum and Natural Gas Regulatory Board (PNGRB), to provide compressed natural gas (CNG) and piped natural gas (PNG) in the geographical area of Mathura,” the firm said in a statement.
It did not provide the value of the deal.
The transaction is subject to approval from PNGRB and fulfilment of other condition precedents.
With this acquisition, Torrent Gas has authorisation to set up a city gas distribution (CGD) network across 17 geographical areas spread over 33 districts in seven states and one UT.
Torrent Gas plans to invest over Rs 8,000 crore in the development of the CGD network in these districts over the next five years, of which Rs 1,500 crore has already been invested, the statement said.
“The Sanwariya Gas acquisition is our fourth acquisition in the CGD sector in three years and is a demonstration of Torrent’s commitment to contributing towards the achievement of Prime Minister’s vision of creating a gas-based economy and increasing the share of natural gas in the Indian energy basket,” said Jinal Mehta, Director, Torrent Gas.
Mathura, he said, has significant potential for growth in both the CNG and piped natural gas (PNG) segments.
“We are committed to significantly expand the already existing CGD infrastructure in Mathura and making CNG and PNG widely available, thereby making it a natural choice for families, small businesses and industries,” he said.
On the occasion, HP Singh, Director, Sanwariya Gas said, “Selling our stake in Sanwariya to Torrent has been a very conscious and considered decision. Torrent Gas brings in a lot of value and we believe the city and the residents of Mathura will immensely benefit from the experience and expertise of Torrent Gas in project execution and its customer-centricity.”
Apart from being a clean source of fuel, CNG offers greater mileage and lower maintenance costs for vehicle owners. Its superior fuel efficiency and significantly lower cost have resulted into its rapid adoption across the country as a safe and eco-friendly alternative to petrol and diesel.
Similarly, PNG also offers significant savings on costs and is far more convenient as compared to other traditional fuels. Supply of PNG through a reliable network of pipelines will offer enhanced safety, convenience and economy to residential, commercial and industrial customers in Mathura.
Torrent Gas is part of the pharma-to-power Torrent Group, with revenues of Rs 22,000 crore and a market capitalisation of Rs 62,000 crore.
It sells CNG to vehicles and PNG to industries and households in 33 districts in Uttar Pradesh, Gujarat, Maharashtra, Rajasthan, Punjab, Tamil Nadu and Telangana and union territory of Puducherry.
Torrent’s licences cover about 7 per cent of India’s population.