Petro retailer IBP Co Ltd said on Thursday that it will invest Rs 528 crore (Rs 5.28 billion) in expanding its retail petrol pump network in 2004-05 and launch a pilot project for use of LNG in automobiles directly.
"IBP plans to set up 501 petrol stations at an expense of Rs 250 crore (Rs 2.5 billion) during the current fiscal. Another Rs 100 crore (Rs 1 billion) would be spent on modernisation and upgradation of the existing ones," IBP chairman M S Ramachandran told reporters in New Delhi.
The remaining sum would be invested in setting up LPG plants, ERP implementation and in cyrogenic business.
IBP, a subsidiary of state-run Indian Oil Corp, will enter into a technological collaboration with Chart Inc of the US for putting up a pilot plant for use of liquefied natural gas directly in engines.
LNG, after being unloaded at import terminal, is first regassified and then transported through pipelines to customers. The cryogenic technology IBP will be buying from Chart Inc would enable transportation of LNG in tankers and use in automobiles without regassification.
The new business, Ramachandran said, would boost IBP revenues that rose 19 per cent to Rs 10,667 crore (Rs 106.67 billion) in 2003-04 as against Rs 8,957 crore (Rs 89.57 billion) in the previous year.
Net profit more than doubled to Rs 215 crore (Rs 2.15 billion) from Rs 88 crore (Rs 880 million) in 2002-03.
IOC commissioned 688 petrol pumps in 2003-04 to take the number of petrol pumps to 2767 but the increase saw per petrol pump sales fall to 151 kilolitres per month from 178.7 kilolitres the previous year, he said.
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