GAIL targets Rs 50,000 cr revenues

State-run gas utility GAIL (India) has chalked out a growth strategy targeting revenues of Rs 50,000 crore by 2011.

"Gail is expecting a revenue of over Rs 50,000 crore by 2011 from a revenue of Rs 16,047 crore in the year 2006-07," GAIL Chairman and Managing Director U D Choubey said, addressing the shareholders at the annual general meeting here.

For the year 2006-07, GAIL reported a profit after tax of Rs 2,387 crore against Rs 2,310 crore in the previous year, while turnover went up to Rs 16,047 crore in 2006-07 compared with Rs 14,459 crore in 2005-06, a growth of 11 per cent.

The increase in turnover was achieved despite severe floods disrupting gas supply for one month and higher burden of LPG subsidy during the year, the company said. GAIL has declared a dividend of 100 per cent during financial year 2006-07.

The company has drawn up a multi-pronged growth strategy that would focus on protecting and strengthening the core competencies of gas transmission, distribution and marketing businesses and pursue margin enhancing businesses such as petrochemicals and city gas projects.

"The company intends to use first mover advantage to strategic benefit in gas retailing and evolve a partnership- based business model with gas producers," Choubey said.

Similarly, GAIL would diversify downstream presence in gas-based LPG and petrochemicals plants.

He added that GAIL would aggressively pursue gas sourcing options both from the new domestic sources as well as through international ones by way of pipelines and LNG route, to secure gas supplies for transmission and trading businesses.

It would also endeavour to secure own sources of gas through participation on the exploration and production (E&P) front and intends to participate aggressively in the upcoming opportunities, including NELP VII.

The company is focusing on leveraging the potential of its human resources through specific measures to train, motivate and channelise them towards theorganisational goals.