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Reliance buys Gujarat Gas LPG division

Reliance Industrial Infrastructure Limited has taken over the liquefied petroleum gas division of Gujarat Gas. The Reliance group company has already signed a formal agreement with Gujarat Gas to the effect.

The takeover would enable Reliance consolidate its position in the LPG market especially in Gujarat through establishment of captive / in-house bottling capacity.

The LPG division bought by RIIL has a bottling capacity of 24,000 tonnes per annum. Gujarat Gas' LPG business consists of the bottling plants of Sanand (near Ahmedabad) and Lodhika (near Rajkot), each having a LPG bottling capacity of 12000 tonnes per annum. The LPG division also has more than 30,000 connections in Gujarat and the cylinders required to service them.

Reliance started marketing LPG in bulk in April, 1997. In June,1998, Reliance also started marketing LPG packed cylinders under the brandname 'Reliance Gas' in Gujarat. The group now plans to enter the market in Maharashtra, Madhya Pradesh and Rajasthan in the next few months.

When contacted, Reliance sources did not divulge the amount of the deal as the takeover is subject to due diligence. A notice about the deal has already been sent to all stock exchanges where the two companies are listed.

UNI

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