Confidence Petroleum Chairman outlines strategy to achieve ₹10,000 crore revenue in 3 years

Confidence Petroleum India, a manufacturer of liquefied petroleum gas (LPG) cylinders, is aiming for revenue of ₹10,000 crore in the next three years. The Nagpur-based company hopes to end FY24 with revenue of ₹2,800 crore

In a conversation with CNBC-TV18, Nitin Khara, CMD, Confidence Petroleum, outlined the strategy to achieve the revenue target.

The LPG major plans a capital expenditure of ₹2,000 crore over three years. Khara pointed out that the company has already received an investment of ₹250.11 crore from Singapore's BW LPG, an owner and operator of LPG vessels.

In December 2023, Confidence announced that the company along with BW LPG will set up an equal joint venture (JV) company BW Confidence Enterprise in India to develop LPG infrastructure and optimise seaborne LPG imports into India. The JV has also entered into an agreement with Ganesh Benzoplast to develop and operate a new LPG onshore import terminal at Jawaharlal Nehru Port Association (JNPA) Port in Navi Mumbai.

Confidence will also invest in increasing bottling plants to 100 from 68, double LPG dispensing stations to 500, take the number of CNG stations to 200 from 32, within the next three years. He is confident that these expansions will help achieve the revenue target.

In the third quarter of FY24, the company's net profit was down nearly 2% from last year at ₹27.4 crore. Revenue was down 23% at ₹554 crore.

In December, Confidence Enterprises, a 100% subsidiary of Confidence Futuristic Energetech, itself a subsidiary of Confidence Petroleum India bagged an order worth ₹67 crore from Bharat Petroleum Corporation Ltd (BPCL). It has been awarded a Letter of Acceptance (LOA) from BPCL.

Confidence Petroleum is a fully integrated LPG and compressed natural gas (CNG) business player with end-to-end infrastructure involved in various aspects of LPG and CNG businesses.

It involves direct import of LPG, manufacturing LPG cylinders, LPG bottling, LPG retail through Auto LPG dispensing Stations and Packaged LPG.

The current market capitalisation of the company is ₹3,278 crore.