Description
It explains about Industry Trends of natural gas industry, PEST Analysis of Industry of natural gas industry, Competitor Analysis, SWOT analysis, Company Description, General Information about the company, it's Finance performance, SWOT analysis of Indraprastha gas and Various Strategies employed by Indraprastha gas.
Indraprastha Gas Limited – Company Analysis
Natural Gas Industry
Natural gas industry is booming in India although its complete potential is yet to be tapped due to lack of infrastructure, like pipeline & LNG terminals. India's fast growing economy results in soaring domestic energy demand. and to meet this demand natural gas is playing very vital role due to its environment-friendly nature, cost effectiveness, and greater efficiency.NG are positioning themselves as a future fuel option for both industrial and nonindustrial sectors in the domestic market. The number of LPG customers is expected to grow at a CAGR of around 6.5% to touch the mark of around 147 Million by FY 2014-end. All in all facts showing that Natural gas industry has bright future ahead. In addition, the robust domestic demand. FDI inflows have grown at a CAGR of around 60% during FY 2007- FY 2011 in this sector. In terms of consumption level, countries in the Asia-Pacific region are driving the overall LNG industry. The burgeoning demand for LNG in countries like, Japan, South Korea, China, and India is expected to result in the construction of more LNG receiving terminals during the next decade. The growth of LNG market depends on a number of factors, energy reforms, and environmental policies. But inadequate infrastructure and natural calamities can contain the growth of global LNG market. Middle East is fast gaining importance as a major LNG supplier
PEST Analysis: In the country like India where prices of various commodities including fuel is determined by government decisions not by market force, it is very likely that future of industry vary as per the various policies implemented by the government. For example, in Delhi state where all public transport vehicle should run on CNG only sees the drastic growth in demand of CNG and hence the robust growth of industry. Same industry grows at much slower rate in other parts of country where no such compulsions are made.
Thus, if there is a political will to take decisions favoring more environment friendly, clean fuel like CNG even that means to face rage of people though for shorter period of time till people come to know the benefits of using it, it will help industry as well as people tremendously in various ways. In a country with one of the world’s fastest growing economy, also means the country with high energy demands. To fulfill this robust energy demand world need cleaner better alternate fuel and this alternative is given by Natural gases. This industry is going to be worth of billions. As people are becoming more aware about environment, they are opting for cleaner, cheaper and more efficient fuel and it is given by Natural Gases. CNG (Compressed Natural Gas)can be used for vehicles whereas PNG (Piped Natural Gas) can be used for household usage like cooking, water heating etc.
INDRAPRASTHA GAS LIMITED IGL is formed for developing infrastructure required for distribution of Natural gas in National capital of India. It was supposed to take over Delhi City Gas Distribution Project in 1999 from GAIL (India) Limited (Formerly Gas Authority of India Limited). GAIL (India) Ltd. and Bharat Petroleum Corporation Ltd. (BPCL) are the promoters of IGL who want to distribute Natural gas in entire delhi and suburbs Delhi to consumers in the domestic, transport, and commercial sectors using the infrastructure laid by IGL. The two main business objectives of the company are – ? To provide safe, convenient and reliable natural gas supply to it’s customers in the domestic and commercial sectors ? To provide a cleaner, environment-friendly alternative as auto fuel to Delhi’s residents. This will considerably bring down the alarmingly high levels of pollution IGL is located in New Delhi. It is founded in 1988 to take over Delhi City Gas Distribution Project in 1999 from GAIL (India) Limited (Formerly Gas Authority of India Limited).
Shareholding pattern IGL’s shares are distributed as follows
Detailed distribution is given in a Share Holding table ) Two promoters BPCL and GAIL hold 45% of total shares.Whereas in public share holding is 55% which can be broken down as follows: On institutional level: 1. 98 Mutual funds/UTI hold 13.85%. 2. 9 financial Institution/ banks hold 1.43% 3. Government holds 5% 4. While 4 Insurance companies and 151 FII hold 3.51% and 19.85% shares respectively. While non institutional share holders have 11.36% shares. This can be summarized as follows:
Promoters Government of NCT of Delhi 5 14 20 5 11 45 Mutual Funds Foreign Institution Investors
Indian Financial Institutions & Banks
Public / Others
IGL is managed by a management committee, whose chairman is Mr. S Venkatraman, Chairman and it consists of other directors ? ? ? ? ? ? ? ? ? Mr. K K Gupta, Director Mr. K K Gupta, Director Mr. Manmohan Singh, Director (Commercial) Mr. M Ravindran, Managing Director Mr. R Chandra Mohan, Director Mr. S S Rao, Director Prof. V Ranganathan, Director Mr. Manmohan Singh, Director (Commercial) Mr. R Chandra Mohan, Director
. Financial performance
The Company has been showing consistently good financial performance both in terms of turnover and profitability. During the year, gross turnover of Company increased by 43% from Rs. 1951.50 crores in year 2010-11 to Rs. 2790.10 crores in the year 2011-12. Profit after tax also went up by 18% from Rs. 259.77 crores in 2010-11 to Rs. 306.43 crores in 2011-12 Financial report can be summarized as in following table Financial report Items Net Sales & Other Income Profit before Depreciation & Tax Depreciation Profit before tax Year 2011-12 2525.34 593.30 143.21 450.09 143.66 Provision for tax Profit after tax Profit brought forward from previous year Profit available for appropriations 306.43 746.17 Year 2010-11 1753.55 488.58 102.87 385.71 125.94 259.77 593.73
1052.60
853.50
Appropriations: Proposed dividend Corporate dividend tax Transferred to general reserve Profit carried forward
70.00 11.35 30.64 940.61 1052.60
70.00 11.35 25.98 746.17 853.50
77% of the total sales comes from the CNG sales and 4% from PNG i.e. household customers while remaining 19% comes from the other sales.
SWOT Analysis: Strengths: The area in which IGL works has very high conversion rate of vehicles from petrol/diesel to CNG based vehicle. Also as per government rule all public transport vehicle must run on CNG, so demand for Natural Gas is accelerated and this is helping IGL tremendously. Also ever increasing rate of petrol as well as people opting for more and more environmental friendly fuel is also helping the for the growth of company. IGL started its operations in NCT of Delhi in 1999 with only 9 CNG stations and 1000 PNG consumers.Today IGL has its operations in NCT of Delhi, Noida, Greater Noida and Ghaziabad with 280 CNG stations, 310000 residential consumers and 730 industrial / commercial customers. It fuels the largest CNG Bus fleet in the World and also connected to 310000 residential consumers, second largest in India. Weakness: Its working area is very small so it has to expand its user base and working area. Also IGL can’t decide the price of its commodity depending upon the market force but it depends upon Government’s policy. Though infrastructure is developing there is still a lot to do to reach out for every singlr potential customer Opportunities In CNG, the new concept of Private Bus Cluster introduced Government of Delhi is expected to reach 1,000 buses by the end of 2012-13. Decision of Delhi Government to introduce 45,000 new auto rickshaws will add to volume in sales. The growth in private car owners segment is expected to maintain the trend of previous years.
IGL has plans to provide PNG supplies to by upcoming industrial belts along Delhi Mumbai Railway Freight Corridor in Dadri Noida Ghaziabad Investment Zone and part of Ludhiana Kolkata freight corridor which will pass through Ghaziabad District Threats faced by the company One of the main threats is increase in Gas price because Increases are passed on to customers and India is very price sensitive market. Also, CNG price still remains competitive vis-à-vis petrol and diesel. Thus though CNG is more Eco friendly people’s are not opting for CNG at higher rate. In addition to this, availability of gas imposes a threat before company as IGL ghas to depend upon other countries for uninterrupted supply natural gas and it highly depends upon the foreign policy of the government.
New Plans IGL has augment CNG infrastructure/Stations in Delhi & NCR to meet the additional demand in view of heavy conversion of private cars IGL has drawn out plans to further consolidate its presence in Delhi and NCR by investing over Rs. 500 crores during the financial year 2012-13. IGL along with Delhi Jal Board (DJB) and a group Company of Bharat Forge, M/s KG Renewables Limited has Your Company has aggressive plans to expand its pipeline signed an MOU to set up a Pilot Project for production of infrastructure to increase the coverage and penetration of Compressed Natural Gas (CNG) out of Sewage Treatment .
.
Share Holding :
(1) (a) STATEMENT SHOWING SHAREHOLDING PATTERN NAME OF THE COMPANY : INDRAPRASTHA GAS LIMITED SCRIP CODE : 532514 NAME OF THE SCRIP : INDRAPRASTHA GAS LIMITED CLASS OF SECURITY : EQUITY
QUARTER ENDED : 31.12.2011
Categor y Code Category of Shareholder Number of Shareholder s Total Number of Total Shareholding as Number of Shares Held in a % of Total Number Shares Dematerialize of Shares d Form As a As a Percentag Percentag e of e of (A+B) (A+B+C) (IV) (V) (VI) (VII) Shares Pledged or Otherwise Encumbered Numbe r of Shares (VIII)
As a Percentage
(I)
(II)
(III)
(IX)=(VIII)/(IV)*10 0
(A) (1) (a) (b)
PROMOTER AND PROMOTER GROUP INDIAN Individuals/HU F Central Government/ State Government(s) Bodies Corporate 2 63000080 63000080 45.00 45.00 0 0.00
0
0
0
0
0
0
0.00
(c)
0
0
0
0.00
0.00
0
0.00
(d)
Financial Institutions/ Banks Others Sub-Total (A)(1):
0 0 2
0 0 63000080
0 0 63000080
0.00 0.00 45.00
0.00 0.00 45.00
0 0 0
0.00 0.00 0.00
(e)
(2) (a)
FOREIGN Individuals (NRIs/Foreign Individuals) Bodies Corporate Institutions Others Sub-Total (A)(2) Total A = A(1) + A(2) 0 0 0 0.00 0.00 0 0.00
(b) (c) (d)
0 0 0 0 2
0 0 0 0 63000080
0 0 0 0 31500000
0.00 0.00 0.00 0.00 45.00
0.00 0.00 0.00 0.00 45.00
0 0 0 0 0
0.00 0.00 0.00 0.00 0.00
(B)
(1)
PUBLIC SHAREHOLDING
Institutions
(a) (b)
Mutual Funds/UTI Financial Institutions /Banks Central Government/ State Government(s) Venture Capital Funds Insurance Companies Foreign Institutional Investors Foreign Venture Capital Investors Others Sub-Total B(1)
98
19383598
19383598
13.85
13.85
9
1998672
1998672
1.43
1.43
(c)
1
7000000
0
5.00
5.00
(d) (e) (f)
0 4
0 4920636
0 4920636
0.00 3.51
0.00 3.51
151
27795961
27795961
19.85
19.85
(g)
0 0 263
0 0 61098867
0 0 54098867
0.00 0.00 43.64
0.00 0.00 43.64
(h)
(2) (a) (b)
NON-INSTITUTIONS Bodies Corporate Individuals (i) Individual 66193 8820028 8805798 6.30 6.30 1157 5046198 5046198 3.60 3.60
holding nominal share capital up to Rs. 1 lakh (ii) Individual holding nominal share capital in excess of Rs. 1 lakh (c) Others NON RESIDENT INDIANS Trusts CLEARING MEMBERS Sub-Total B(2): Total B = B(1) + B(2) TOTAL (A+B) (C) (1) (2) 814 8 134 68356 68619 68621 427003 1128 92950 15901213 77000080 14000016 0 427003 1128 92950 15886983 69985850 132985930 0.31 0.00 0.07 11.36 55.00 100.00 0.31 0.00 0.07 11.36 55.00 100.00
50
1513906
1513906
1.08
1.08
Shares held by Custodians, against which Depository Receipts have been issued Promoter and Promoter Group Public GRAND TOTAL (A + B + C) 0 68621 0 14000016 0 0 132985930 0.00 100.0 0.00 100.00 0 0.00
doc_735372133.docx
It explains about Industry Trends of natural gas industry, PEST Analysis of Industry of natural gas industry, Competitor Analysis, SWOT analysis, Company Description, General Information about the company, it's Finance performance, SWOT analysis of Indraprastha gas and Various Strategies employed by Indraprastha gas.
Indraprastha Gas Limited – Company Analysis
Natural Gas Industry
Natural gas industry is booming in India although its complete potential is yet to be tapped due to lack of infrastructure, like pipeline & LNG terminals. India's fast growing economy results in soaring domestic energy demand. and to meet this demand natural gas is playing very vital role due to its environment-friendly nature, cost effectiveness, and greater efficiency.NG are positioning themselves as a future fuel option for both industrial and nonindustrial sectors in the domestic market. The number of LPG customers is expected to grow at a CAGR of around 6.5% to touch the mark of around 147 Million by FY 2014-end. All in all facts showing that Natural gas industry has bright future ahead. In addition, the robust domestic demand. FDI inflows have grown at a CAGR of around 60% during FY 2007- FY 2011 in this sector. In terms of consumption level, countries in the Asia-Pacific region are driving the overall LNG industry. The burgeoning demand for LNG in countries like, Japan, South Korea, China, and India is expected to result in the construction of more LNG receiving terminals during the next decade. The growth of LNG market depends on a number of factors, energy reforms, and environmental policies. But inadequate infrastructure and natural calamities can contain the growth of global LNG market. Middle East is fast gaining importance as a major LNG supplier
PEST Analysis: In the country like India where prices of various commodities including fuel is determined by government decisions not by market force, it is very likely that future of industry vary as per the various policies implemented by the government. For example, in Delhi state where all public transport vehicle should run on CNG only sees the drastic growth in demand of CNG and hence the robust growth of industry. Same industry grows at much slower rate in other parts of country where no such compulsions are made.
Thus, if there is a political will to take decisions favoring more environment friendly, clean fuel like CNG even that means to face rage of people though for shorter period of time till people come to know the benefits of using it, it will help industry as well as people tremendously in various ways. In a country with one of the world’s fastest growing economy, also means the country with high energy demands. To fulfill this robust energy demand world need cleaner better alternate fuel and this alternative is given by Natural gases. This industry is going to be worth of billions. As people are becoming more aware about environment, they are opting for cleaner, cheaper and more efficient fuel and it is given by Natural Gases. CNG (Compressed Natural Gas)can be used for vehicles whereas PNG (Piped Natural Gas) can be used for household usage like cooking, water heating etc.
INDRAPRASTHA GAS LIMITED IGL is formed for developing infrastructure required for distribution of Natural gas in National capital of India. It was supposed to take over Delhi City Gas Distribution Project in 1999 from GAIL (India) Limited (Formerly Gas Authority of India Limited). GAIL (India) Ltd. and Bharat Petroleum Corporation Ltd. (BPCL) are the promoters of IGL who want to distribute Natural gas in entire delhi and suburbs Delhi to consumers in the domestic, transport, and commercial sectors using the infrastructure laid by IGL. The two main business objectives of the company are – ? To provide safe, convenient and reliable natural gas supply to it’s customers in the domestic and commercial sectors ? To provide a cleaner, environment-friendly alternative as auto fuel to Delhi’s residents. This will considerably bring down the alarmingly high levels of pollution IGL is located in New Delhi. It is founded in 1988 to take over Delhi City Gas Distribution Project in 1999 from GAIL (India) Limited (Formerly Gas Authority of India Limited).
Shareholding pattern IGL’s shares are distributed as follows
Detailed distribution is given in a Share Holding table ) Two promoters BPCL and GAIL hold 45% of total shares.Whereas in public share holding is 55% which can be broken down as follows: On institutional level: 1. 98 Mutual funds/UTI hold 13.85%. 2. 9 financial Institution/ banks hold 1.43% 3. Government holds 5% 4. While 4 Insurance companies and 151 FII hold 3.51% and 19.85% shares respectively. While non institutional share holders have 11.36% shares. This can be summarized as follows:Promoters Government of NCT of Delhi 5 14 20 5 11 45 Mutual Funds Foreign Institution Investors
Indian Financial Institutions & Banks
Public / Others
IGL is managed by a management committee, whose chairman is Mr. S Venkatraman, Chairman and it consists of other directors ? ? ? ? ? ? ? ? ? Mr. K K Gupta, Director Mr. K K Gupta, Director Mr. Manmohan Singh, Director (Commercial) Mr. M Ravindran, Managing Director Mr. R Chandra Mohan, Director Mr. S S Rao, Director Prof. V Ranganathan, Director Mr. Manmohan Singh, Director (Commercial) Mr. R Chandra Mohan, Director
. Financial performance
The Company has been showing consistently good financial performance both in terms of turnover and profitability. During the year, gross turnover of Company increased by 43% from Rs. 1951.50 crores in year 2010-11 to Rs. 2790.10 crores in the year 2011-12. Profit after tax also went up by 18% from Rs. 259.77 crores in 2010-11 to Rs. 306.43 crores in 2011-12 Financial report can be summarized as in following table Financial report Items Net Sales & Other Income Profit before Depreciation & Tax Depreciation Profit before tax Year 2011-12 2525.34 593.30 143.21 450.09 143.66 Provision for tax Profit after tax Profit brought forward from previous year Profit available for appropriations 306.43 746.17 Year 2010-11 1753.55 488.58 102.87 385.71 125.94 259.77 593.73
1052.60
853.50
Appropriations: Proposed dividend Corporate dividend tax Transferred to general reserve Profit carried forward
70.00 11.35 30.64 940.61 1052.60
70.00 11.35 25.98 746.17 853.50
77% of the total sales comes from the CNG sales and 4% from PNG i.e. household customers while remaining 19% comes from the other sales.
SWOT Analysis: Strengths: The area in which IGL works has very high conversion rate of vehicles from petrol/diesel to CNG based vehicle. Also as per government rule all public transport vehicle must run on CNG, so demand for Natural Gas is accelerated and this is helping IGL tremendously. Also ever increasing rate of petrol as well as people opting for more and more environmental friendly fuel is also helping the for the growth of company. IGL started its operations in NCT of Delhi in 1999 with only 9 CNG stations and 1000 PNG consumers.Today IGL has its operations in NCT of Delhi, Noida, Greater Noida and Ghaziabad with 280 CNG stations, 310000 residential consumers and 730 industrial / commercial customers. It fuels the largest CNG Bus fleet in the World and also connected to 310000 residential consumers, second largest in India. Weakness: Its working area is very small so it has to expand its user base and working area. Also IGL can’t decide the price of its commodity depending upon the market force but it depends upon Government’s policy. Though infrastructure is developing there is still a lot to do to reach out for every singlr potential customer Opportunities In CNG, the new concept of Private Bus Cluster introduced Government of Delhi is expected to reach 1,000 buses by the end of 2012-13. Decision of Delhi Government to introduce 45,000 new auto rickshaws will add to volume in sales. The growth in private car owners segment is expected to maintain the trend of previous years.
IGL has plans to provide PNG supplies to by upcoming industrial belts along Delhi Mumbai Railway Freight Corridor in Dadri Noida Ghaziabad Investment Zone and part of Ludhiana Kolkata freight corridor which will pass through Ghaziabad District Threats faced by the company One of the main threats is increase in Gas price because Increases are passed on to customers and India is very price sensitive market. Also, CNG price still remains competitive vis-à-vis petrol and diesel. Thus though CNG is more Eco friendly people’s are not opting for CNG at higher rate. In addition to this, availability of gas imposes a threat before company as IGL ghas to depend upon other countries for uninterrupted supply natural gas and it highly depends upon the foreign policy of the government.
New Plans IGL has augment CNG infrastructure/Stations in Delhi & NCR to meet the additional demand in view of heavy conversion of private cars IGL has drawn out plans to further consolidate its presence in Delhi and NCR by investing over Rs. 500 crores during the financial year 2012-13. IGL along with Delhi Jal Board (DJB) and a group Company of Bharat Forge, M/s KG Renewables Limited has Your Company has aggressive plans to expand its pipeline signed an MOU to set up a Pilot Project for production of infrastructure to increase the coverage and penetration of Compressed Natural Gas (CNG) out of Sewage Treatment .
.
Share Holding :
(1) (a) STATEMENT SHOWING SHAREHOLDING PATTERN NAME OF THE COMPANY : INDRAPRASTHA GAS LIMITED SCRIP CODE : 532514 NAME OF THE SCRIP : INDRAPRASTHA GAS LIMITED CLASS OF SECURITY : EQUITY
QUARTER ENDED : 31.12.2011
Categor y Code Category of Shareholder Number of Shareholder s Total Number of Total Shareholding as Number of Shares Held in a % of Total Number Shares Dematerialize of Shares d Form As a As a Percentag Percentag e of e of (A+B) (A+B+C) (IV) (V) (VI) (VII) Shares Pledged or Otherwise Encumbered Numbe r of Shares (VIII)
As a Percentage
(I)
(II)
(III)
(IX)=(VIII)/(IV)*10 0
(A) (1) (a) (b)
PROMOTER AND PROMOTER GROUP INDIAN Individuals/HU F Central Government/ State Government(s) Bodies Corporate 2 63000080 63000080 45.00 45.00 0 0.00
0
0
0
0
0
0
0.00
(c)
0
0
0
0.00
0.00
0
0.00
(d)
Financial Institutions/ Banks Others Sub-Total (A)(1):
0 0 2
0 0 63000080
0 0 63000080
0.00 0.00 45.00
0.00 0.00 45.00
0 0 0
0.00 0.00 0.00
(e)
(2) (a)
FOREIGN Individuals (NRIs/Foreign Individuals) Bodies Corporate Institutions Others Sub-Total (A)(2) Total A = A(1) + A(2) 0 0 0 0.00 0.00 0 0.00
(b) (c) (d)
0 0 0 0 2
0 0 0 0 63000080
0 0 0 0 31500000
0.00 0.00 0.00 0.00 45.00
0.00 0.00 0.00 0.00 45.00
0 0 0 0 0
0.00 0.00 0.00 0.00 0.00
(B)
(1)
PUBLIC SHAREHOLDING
Institutions
(a) (b)
Mutual Funds/UTI Financial Institutions /Banks Central Government/ State Government(s) Venture Capital Funds Insurance Companies Foreign Institutional Investors Foreign Venture Capital Investors Others Sub-Total B(1)
98
19383598
19383598
13.85
13.85
9
1998672
1998672
1.43
1.43
(c)
1
7000000
0
5.00
5.00
(d) (e) (f)
0 4
0 4920636
0 4920636
0.00 3.51
0.00 3.51
151
27795961
27795961
19.85
19.85
(g)
0 0 263
0 0 61098867
0 0 54098867
0.00 0.00 43.64
0.00 0.00 43.64
(h)
(2) (a) (b)
NON-INSTITUTIONS Bodies Corporate Individuals (i) Individual 66193 8820028 8805798 6.30 6.30 1157 5046198 5046198 3.60 3.60
holding nominal share capital up to Rs. 1 lakh (ii) Individual holding nominal share capital in excess of Rs. 1 lakh (c) Others NON RESIDENT INDIANS Trusts CLEARING MEMBERS Sub-Total B(2): Total B = B(1) + B(2) TOTAL (A+B) (C) (1) (2) 814 8 134 68356 68619 68621 427003 1128 92950 15901213 77000080 14000016 0 427003 1128 92950 15886983 69985850 132985930 0.31 0.00 0.07 11.36 55.00 100.00 0.31 0.00 0.07 11.36 55.00 100.00
50
1513906
1513906
1.08
1.08
Shares held by Custodians, against which Depository Receipts have been issued Promoter and Promoter Group Public GRAND TOTAL (A + B + C) 0 68621 0 14000016 0 0 132985930 0.00 100.0 0.00 100.00 0 0.00
doc_735372133.docx