As the world is moving towards a cleaner and pollution free environment, more and more industries are shifting to LPG/CNG base, which is eco-friendly and hence growth in LPG sector is seen. LPG being more economical, in comparison with others, the industry will gain significance not only in the eastern region, but also in whole of India. Future Prospect of Eco-friendly Fuel is very bright.
The company expects a good growth in this segment as the companies are turning into LPG usable furnaces and systems for there plants due to clean and cheaper fuel.
The World is looking at cleaner fuel. The market of LPG is wide and growing. The LPG caters to large section of Industry for their fuel requirement, Auto sector as substitute to costly Petrol/Diesel, Household sector as efficient fuel, and then there is growing rural sector which is gradually shifting from traditional fuel (Wood, Coal etc.) to LPG. The main know advantages are:
A high percentage of high Calorific Value Propane.
No residue. No Sulphur.
An ideal gas with high calorific value.
Clean and pollution-free fuel with easy availability.
Economical when compared to other fuels like Kerosene, Coal and Wood.
fourth largest consumer of LPG in the world after USA, China & Japan .
Third largest consumers in domestic sector in the world after China & USA.
Major market of LPG is Domestic Sector.
Home Delivery of 3 Million LP Gas cylinders per day (i.e 900 Million/ year).
Steady Growth @ 8% p.a. in LPG Consumption in India.
Gap between demand & supply (indigenous production).
Demand in 2009 - 10 stands at 12746 TMT.
Indigenous Production in 2009 - 10 was 10323 TMT.
Imports @22% of total LPG Demand .
Indigenous LPG production through State Run, Private and Fractionators.
Domestic growth is 8 - 9% but overall pie has reduced over the years
Commercial & Industrial Consumption is increasing.
World Consumption in Industrial Sector is almost 11% & in Transport is 9%
(High Growth Expected in Commercial/Industrial & Transport Sector)
|Population in Million||326.2||838.8||1165|
|Households in Million||95||159||254|
|LPG Connections in Million||83.8||31.2||115.0|
|Penetration of LPG||88%||19.6%||45%|