Business Today

Propelling Ahead

Adani Gas has managed to reduce debt despite spending heavily on expanding the network.
twitter-logo Nevin John        Print Edition: July 19, 2015
Rajeev Sharma, CEO, Adani Gas
Rajeev Sharma, CEO, Adani Gas

GROUP: SUBSIDIARIES/ JVs
SEGMENT: REVENUE Rs 1,000-3,000 CRORE
FASTEST-GROWING Emerging Companies Rank: 3

Adani Gas, a wholly owned subsidiary of Adani Enterprises, has rarely looked back in the race to expand its city gas distribution network. Its revenue rose at 38.63 per cent compounded annual growth rate between 2010/11 and 2013/14, though net profit remained Rs 40-50 crore during this period.

The company, led by CEO Rajeev Sharma, is implementing gas distribution projects in various cities for industrial, commercial, domestic and transport sectors. It has been focusing on expansion of network, especially outside Gujarat, and addition of customers. Its aim is to be among India's leading gas distribution companies.

REVENUE:
Rs 1,631.4 crore

NET PROFIT:
Rs 47.54 crore

THREE-YEAR CAGR:
38.63%

THREE-YEAR AVERAGE TOPLINE GROWTH:
40.46%

Adani Gas has, in the last four years, completed 410 km steel pipelines and 4,100 km polyethylene pipelines (until 2013/14). It owns and operates city gas distribution networks in Ahmedabad and Vadodara (Gujarat), Faridabad (Haryana), Khurja and Lucknow (Uttar Pradesh) and Jaipur and Udaipur (Rajasthan).

FULL COVERAGE: India's Emerging Companies 2015

In addition, a consortium of Adani Gas and Indian Oil Corporation is developing city gas distribution networks in Allahabad and Chandigarh. The consortium has also bagged a contract to build a network in Ernakulam, Kerala. The company supplies piped natural gas to household and industrial customers and compressed natural gas (CNG) to automobile users. In 2014, it had 63 CNG stations in Gujarat and Haryana and served 850 industrial units, 1,78,000 households and 1,300 commercial units.

FASTEST GROWING EMERGING COMPANIES 2015: Eicher Motors | Serum institute of India | Kwality | Avanti Feeds | Kaveri Seeds | PVR | IL&FS Education | Shilpi Cables

Despite the capital intensive nature of the business, the company has lowered its debt by almost Rs 100 crore in three years until 2013/14 to Rs 397.54 crore. This was thanks mainly to a 48 per cent rise in profit before depreciation, interest, tax and amortisation to Rs 171 crore during this period.

To prepare for the next phase of growth, the company has re-formulated its 2020 vision. Adani Gas, say company executives, wants to be known for its speed of execution and quality of operation.

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