Everest Kanto Cylinder Ltd (EKC), leading player in high-pressure gas cylinders, has informed BSE and NSE that the Company has acquired majority stake (72.65%) in Calcutta Compressions & Liquefaction Engineering Pvt. Ltd ("CC&L") for a consideration of Rs. 2.4 crore.
CC&L is in the business of purchase and sale of natural gas and has an existing agreement with Oil & Natural Gas Corporation Ltd ("ONGC") for sourcing methane gas from the latter’s coal bed methane project at Parbatpur near Jharia in Jharkhand.
EKC will be initially involved in supply of the gas to industrial customers in and around Dhanbad and Bokaro and at a later stage, there is a potential for city gas distribution to fuel auto rickshaws and commercial vehicles in the eastern region. It will transport gas to industries using cascades and jumbo cylinders. Going forward, the company is also planning to set up pipelines for supply of the gas once gas offtake increases significantly.
Commenting on the occasion Mr. Prem Khurana, CMD, Everest Kanto Cylinder Limited said: “With the growing demand for CNG in various parts of the country including for industrial use, this acquisition will prove beneficial and offer perfect synergy to EKC’s business.”
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