Hyderabad-headquartered SHV Energy India has acquired Caltex Gas India in an all-cash deal for an undisclosed sum.
SHV is a 100 per cent subsidiary of the family-owned over 11 billion euro Dutch business group SHV Holdings NV.
Caltex, based out of Chennai, is the Indian subsidiary of US-based Chevron Group. The company is engaged in import, storage, bottling and marketing of liquefied petroleum gas (LPG), with a turnover of Rs 250 crore in FY09.
“This acquisition gives us an entry into the south Indian market – Tamil Nadu and Kerala – besides enabling us to meet the increasing demand from the industrial and commercial (I&C) segments. We plan to launch innovative products and services in these new markets,” Ajay Kumar, chief executive officer of SHV Energy India, told mediapersons on Tuesday.
Through this acquisition, SHV has acquired an LPG terminal facility at Tuticorin in Tamil Nadu with an annual throughput capacity of 180,000 tonne. “This will strengthen our LPG supplies in the country,” he said.
SHV Energy India, known by its brand Super Gas, has exceeded Rs 650 crore in sales revenues this financial year. The company is engaged in LPG distribution, auto LPG, and I&C. It has its LPG terminal located in Puducherry.
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Stating that the Indian LPG market is currently pegged at 12 million tonne a year with the I&C segment accounting for close to 1.2 million tonne, Kumar said the SHV-Caltex combine will now have a market share of 13 per cent in the I&C sector, and 45 per cent among all the private LPG players.
“There has not been any significant growth in the domestic LPG market and hence we are currently focusing on the I&C segment,” he said, adding the company plans to add five more auto LPG dispensing stations to the present 20 across Ahmedabad, Hyderabad and Maharashtra in the next six months.