(Republished from BSEINDIA website)
In a significant development, one of India’s largest LPG-CNG companies, Confidence Petroleum India Limited and Norway listed BW LPG, a leading LPG shipping & LPG trading company, have joined forces, aligning their business goals to strengthen LPG terminal infrastructure and downstream operations across India.
Confidence Group is a fully integrated LPG & CNG Company, established in 1993 with a vision to ensure access to green and clean fuel to every citizen & commercial entity across India. The Group has evolved into one of India’s premier private players in LPG industry with significant footprint in industrial, automobile, and domestic retail spaces. Confidence Petroleum stands as India’s largest private sector LPG bottling company, operating 68+ bottling plants and boasting a network of 250+ Auto LPG dispensing stations nationwide.
The company retails packaged gas under its brand “Go Gas” and operates through a network of 2000+ dealers. Expanding its footprint, CPIL is venturing into the CNG business with around 35 CNG stations in Bangalore in partnership with GAIL. It also owns 3 CNG cylinder manufacturing units through its subsidiary and manages its fleet of 600+ LPG vehicles for transportation across India. Confidence group has recently announced its upcoming project of High Tech German Technology Type 4 High Pressure Cylinder manufacturing unit at Nagpur.
BW LPG is the world’s largest owner and operator of Very Large Gas Carriers (VLGC) with a fleet of 46 VLGCs and 2 Medium Gas Carriers with a total capacity exceeding 3 million CBM. BW LPG India, a subsidiary of BW LPG and established in 2017, is India’s largest owner and operator of India-flagged VLGCs. It handles approximately 20% of India’s LPG imports and commands about 30% of the time-charter market in the country. BW LPG is part of BW Group, a leading global maritime company involved in shipping, floating infrastructure, deepwater oil & gas production, and new sustainable technologies. BW controls a fleet of over 490 vessels transporting oil, gas and dry commodities, with its 200 LNG and LPG ships constituting the largest gas fleet in the world.
Shri Nitin Khara, Chairman & Managing Director – Confidence Group, expressed, “We are thrilled to announce this strategic joint venture with BW LPG and investment in Confidence Petroleum. This collaboration marks a significant milestone for Confidence Petroleum as we fortify our position in India’s LPG terminal infrastructure & ever-growing downstream operations. We anticipate a fruitful partnership that will drive value for our stakeholders and foster mutual success.”
Mr. Iver Baatvik, Vice President & Head of Corporate Development BW LPG, added, “Confidence Petroleum boasts a formidable presence in the domestic LPG industry, while BW LPG possesses deep experience in global LPG shipping and trading. The synergy between Confidence Petroleum’s local strength and BW LPG’s international reach is a catalyst to accelerate growth trajectories for both parties. We have invested over 3000 Cr in India, and we are planning to deepen our presence even further in an important and growing economy.
BW LPG and Confidence have established a JV named “BW Confidence Enterprise Private Limited” (“BW Confidence”) in India, to explore investment opportunities in onshore LPG import infrastructures. The JV has already initiated their very first project at JNPT, Mumbai with Ganesh Benzoplast (GBL) to develop one of India’s largest cryogenic LPG storage facilities and envisages future growth to support the supply of LPG into India.
Based in Mumbai, the JV will collaborate with BW LPG’s trading division as well as India subsidiary, BW Product Services and BW LPG India respectively, to source and deliver LPG from the international market to meet Confidence’s and India’s growing LPG import needs.
BW LPG has also invested USD 30 million in Confidence through a preferential allotment of equity shares. These shares will constitute 8.50% of the issued and paid-up share capital of Confidence on a fully diluted basis. The investment will support Confidence as it expands its capacity in LPG downstream assets.
Confidence envisions substantial future growth by expanding its current 68+ LPG bottling plant infrastructure to 100 and adding 500 Auto LPG Dispensing Stations along with 200 CNG Stations within a span of three years. With these expansions, CPIL plans to achieve a revenue of 10,000 Crores in coming 3 years.
This strategic investment & infrastructure development will create 5000+ small & medium scale entrepreneurs by way of retail expansion & direct and indirect employment opportunities for more than 50,000 people.
