GAIL aims for Rs50,000-cr revenues by 2011

GAIL aims for Rs50,000-cr revenues by 2011

New Delhi: State-run gas utility GAIL today said it has chalked out a growth strategy targeting revenues of Rs50,000 crore by the year 2011.

“Gail is expecting a revenue of Rs50,000 crore plus by 2011 from a revenue of Rs16,047 crore in the year 2006-07," GAIL chairman and managing director U. D. Choubey said while addressing the shareholders at the annual general meeting.

For the year 2006-07, GAIL reported a profit after tax of Rs2,387 crore as against Rs2,310 crore in the previous year, while turnover went up to Rs16,047 crore in 2006-07 as compared to Rs14,459 crore in 2005-06, a growth of 11%.

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% for FY2006-07.

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.