Corporate Report     

Published: February 15, 2024
Updated: February 15, 2024

Confidence Petroleum India

Game-changing cylinders for green hydrogen storage

Confidence Petroleum India Ltd, a fully integrated and leading player in the LPG and CNG industry, is making a foray into the rapidly growing market of green hydrogen Type 4 cylinder manufacturing. These cylinders will be manufactured by Silversky Exim Pvt Ltd, a subsidiary of Confidence’s subsidiary, Confidence Futuristics Energetech Ltd.

ECO-FRIENDLY

According to him, in support of the Indian government’s policy for reducing environmental pollution, the Confidence group recognizes the immediate need of environmental pollution control and is dedicated to contributing the lion’s share for a sustainable and safe future. The Type 4 cylinders will be designed and manufactured with a focus on minimizing environmental impact

The Confidence group, leveraging state-of-the-art technology, will deliver high- quality Type 4 cylinders that meet the best industry standards. The innovative designs will optimize storage efficiency and enhance the overall reliability of hydrogen-based solutions.

Pointing out that the “Confidence group, by venturing into the green hydrogen market, aims to become a frontrunner in providing solutions that accelerate adoption of renewable energy sources,” Mr Khara adds that the Type 4 cylinders will play a crucial role in efficient storage and transportation of green hydrogen. The Confidence group foresees a global impact through its green hydrogen initiatives. The Type 4 cylinders manufactured by the company will provide solutions to meet the increasing demand for clean energy storage worldwide, thus contributing to a reduction of carbon emissions.

GREEN TIES

The group is actively engaging in partnership with key players in the green hydrogen ecosystem, including technology providers, energy companies and research institutions. These collaborations will further strengthen the company’s position in driving innovations and sustainability

Confidence Petroleum

The company's business is spread across different states of the country, comprising 15 fully functional LPG cylinder manufacturing plants, 3 high-pressure cylinder manufacturing plants, 620+ own fleet of LPG vehicles, an extensive chain of over 248+ auto LPG stations, 35+ CNG stations in Bangalore, 65+ bottling plants, a 2,000+ GoGas dealer network across 26 Indian states catering to diverse LPG needs of residential, industrial and various business segments with its own transport fleet of 600+ vehicles.

FINE FINANCES

Confidence Petroleum is going from strength to strength on the financial front. During the last 12 years, it sales turnover has more than trebled from Rs 639 crore in fiscal 2012 to Rs 2,299 crore in fiscal 2023, with operating profit expanding more than four times from Rs 50 crore to Rs 223 crore and the profit at net level shooting up more than 10 times from Rs 9 crore to Rs 93 crore. The company's financial position is very strong, with reserves at the end of fiscal year 2023 standing at Rs 784 crore - 28 times its equity capital of Rs 28 crore.

Future prospects for the company are considered all the more promising. The company has joined hands with BW VLGC Pte Ltd to set up a 50:50 joint venture styled BW Confidence Enterprise Pvt Ltd, focussing on LPG infrastructure development. BG will inject $ 30 million into Confidence Petroleum through preferential allotment of upto 2,82,29,420 equity shares at a price of Rs 88.60 per piece.

Furthermore, BW Confidence Enterprise and Ganesh Benzoplast have signed a pact to develop an onshore LPG import terminal at Jawaharlal Nehru Port Trust in Mumbai. According to Mr Khara, these initiatives will fortify the company's position in the LPG segment. The foray into the hi-tech hydrogen cylinders sector will give a further boost to the company's topline as well as bottomline.