GSP to increase exposure in ceramics, textiles

Gujarat State Petronet (GSP), a company that owns and operates natural gas transmission network, expects its exposure to increase in segments like ceramics, textiles and chemicals.

On the sidelines of addressing mediapersons on the GSP initial public offer, D J Pandian, managing director of the company, said that contracts from chemical plant was 4.8 per cent of operating profits (Rs 131 crore) while ceramics and textiles would be new areas which they plan to increase by 30 per cent.

At present power generation plants contribute almost 56 per cent of operating profits while fertilisers and steel plants account for about 13 per cent each.

He said that construction and implementation gas transmission pipelines and spur lines of about 742 km length would enable the company to increase its exposure. The company is tapping the capital market for this expansion.

Gujarat Paguthan Energy Corporation is the largest customer of GSP as it contributes almost 30 per cent of the revenue. GSP's gas transmission agreement with GPEC is for a period of five years and expires in September 2007.

"We will continue to have a strong relationship with GPEC, despite GPEC's existing connection with GAIL's pipeline. Our transmission pipeline is the only one connected to the natural gas supplies of GSPC-Niko and Cairn Energy, from whom GPEC purchases natural gas," he added.

GSP is entering the capital market with a public issue of 13.8 crore equity shares of Rs 10 each for cash at a premium to be decided by the book building process. The issue opens from January 24 "� 28, 2006.