OIL & GAS

GAIL plans to double revenue in five years: Chairman

GAIL is planning to double its revenue and expand profit by 50% in five years, aided by a planned capex of Rs 1 lakh crore in new pipelines, city gas and petrochemicals projects, chairman Manoj Jain has said.

GAIL, which recorded a profit of Rs 6,000 crore on a revenue of Rs 75,000 crore in the last fiscal year, expects contributions from transmission and gas marketing to rise in its overall revenue over the next five years.

“Transmission should be a larger pie as compared to today because revenue-wise gas prices may not be that high. Marketing, trading will also be slightly bigger, but petrochemicals, we feel that, since other players are also coming, the market will have more capacity and our share in the market may be slightly lower.

Within in the company, petchem should be in the range of around 25% or so,” said Jain, who took over as chairman and managing director last week. At present, transmission, gas marketing and petrochemicals contribute almost equally to the company’s revenue.

Besides growing the business, the priority would be to raise employee satisfaction so that there is more loyalty and motivation for them to contribute, Jain said.

GAIL will need about a year to hive off its pipeline business into a subsidiary once the Cabinet has approved such a proposal, Jain said.

Source
ET Energy World
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