Reported By:
| Edited By: Venkata Ramana |Source: DNA |Updated: Mar 17, 2018, 02:33 AM IST
SHV group, the Dutch oil and gas major, has acquired Caltex Gas India, a wholly-owned subsidiary of the US-based Chevron Group, in an all cash deal. Caltex, set up in 1998 in India, has been into import, storage, bottling and marketing of LPG. The company has a turnover of about Rs 350 crore.
SHV India, which is also into LPG market, entered the Indian market in 1996 to take advantage of the domestic LPG supply market. However, with the LPG market remaining under the administered price regime, the company had to change its plans for India including altering the investment plans significantly.
Currently, SHV India, which sells LPG under Super Gas brand, is focusing on industrial and commercial LPG consumers in the country with a turnover of Rs 650 crore.
Caltex has its own terminal in Tuticorin and two filling plants at Madurai and Chennai.
SHV has its presence in Andhra Pradesh, Gujarat and Maharashtra. The company also operates about 20 LPG filling stations in the country. SHV has a terminal in Porbandar.
“We get immediate access to the southern market through this acquisition. Caltex has an established customer base in Tamil Nadu and Kerala. With this deal we will be able to tap these markets from day one,” SHV Energy CEO, Ajay Kumar said.
The key benefits SHV would derive through the deal include an immediate addition to its revenue.
With the Caltex deal, SHV in India surpasses Rs 1,000-crore turnover. SHV would also increase its market share to 13.2% in the total industrial and commercial segment. Among the private players’ market, SHV would have a share of about 45%. Additionally, it would have an additional terminal at Tuticorin with an annual throughput of 1.8 lakh MT per annum.
“We are importing the LPG for now. So, having 2 terminals - one in the West and the other in South would make us more competitive in the market. Currently, we are only trying to replace the liquid fuels used by the industries. This would remain our focus even in the years to come,” he said.
