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MUMBAI : Mumbai-based city gas distribution (CGD) company Mahanagar Gas Ltd (MGL) will set up 10 mobile refuelling units (MRUs) in the next year to meet the increasing demand for selling compressed natural gas (CNG).

MRUs, used for refuelling, can be conveniently parked at parking lots or open parks and land parcels approved by local authorities.

These units are an effective way of reaching out to customers and will also accelerate the expansion plans of CGD companies, considering that setting up a CNG outlet is capital-intensive and could cost between 75 lakh and 1 crore.

"We think that eight to 10 should be a good number to start within this fisc," the company told analysts during the first quarter ending earnings call, adding that once it places an order, it is only a matter of putting up a cascade and a cylinder and a compressor and a dispenser on a truck and then take it and drive it to a location and then start dispensing and get it, fly it between mother station and that location to get it filled up.

MRUs will allow these companies to serve a higher number of customers pushing CNG volumes. For CGD players, over 65% of their existing sales volumes come through co-located CNG outlets on oil marketing companies' land.

MGL on Thursday reported a 351% jump in its June quarter net profit as volumes recovered over a low base of last year.

Net profit of 204.08 crore, or 20.66 per share, in April-June, compared with 45.25 crore, in the same period a year back.

Piped natural gas supplies to households at 42.57 million standard cubic meters was 9.14% higher year-on-year and 3.5% over the previous quarter.

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