HPCL has been expanding its footprint in various product portfolios and natural gas will be a future growth driver for the company, said MK Surana, CMD of the company. He added that buying out the 50 percent stake held by Shapoorji Pallonji fits into that strategy.
“The LNG gasification terminal at Chhara which was a joint venture between HPCL and Shapoorji Pallonji Group. We saw an opportunity for us to expand our total stake in that and we think that it fits in the future strategy of the company to have a strong presence in the natural gas market and in various components of the natural gas,” he said in an interview to CNBC-TV18.
According to Surana, expansion in portfolio will help in de-risking existing business line.
“We have made certain shifts in the product portfolio and natural gas and LNG is one of that. The current acquisition is also a part of that strategy. Expansion of our business in the natural gas segment is also a part of that strategy. The expansion in the portfolio helps in de-risking the existing business lines and at the same time it captures opportunities for future businesses,” he said.
He also said that HPCL has also undertaken expansions in manufacturing and marketing in a few baskets. He said that they have 694 gas stations where CNG is being dispensed.Watch video for more.