GAIL India eyes expansion in petrochemicals, renewables to supplement growth
State-owned GAIL India Ltd is eyeing expansion in petrochemicals, specialty chemicals and renewables to supplement growth in its core business of natural gas marketing and transportation, its chairman Manoj Jain has said. The nation’s largest gas marketer and shipper has adopted a revised strategic plan identifying priority business initiatives. “This strategic plan will help to address challenges in changing industry scenarios and provide new areas for growth with geographic expansion,” he said in the company’s latest annual report.
GAIL transports over 70 per cent of all gas shipped in the country through its network of 12,426-km network of natural gas trunk pipelines. It sells 55 per cent of all natural gas in the country and petrochemical plants at Pata and Lepatkata in Assam that gives it a 17.5 per cent market share.
It has a small portfolio of wind and solar power generation capacity. “While gas will remain our core segment, we will look for growth in other areas such as petrochemicals, specialty chemicals, renewables, water, etc to reach new heights in coming years,” he said. GAIL in the annual report for 2019-20 said it has undertaken ‘Strategy 2030’ exercise to define its journey through the next decade.
“The strategy has been developed with the objective of building a strong business portfolio and organisation structure which is not only robust enough to respond to the fast-changing business scenario but also unlocks growth opportunities for the long-term growth of the company,” it said.
GAIL said it plans to bid for new pipelines put on offer by the regulator. Also, it will continue to grow its gas transmission business by laying important sections of National Gas Grid — about 7,500-km of lines, mostly to the eastern part of the country, are currently being laid.