Having entered the auto LPG retailing business in mid-2008 when it took over a small player BND in Gujarat, Spice Gas is now close to acquiring control over the dealer network of a major private sector player in the auto LPG segment.

The deal is expected to be closed in a couple of weeks. The geographical coverage, will consequently expand to Madhya Pradesh, Maharashtra and Andhra Pradesh. Spice Gas, a Spice Energy group company, currently has two dealer-owned and -operated outlets.

Another three outlets are under construction and approvals have been sought from the Controller of Explosives for 20 more outlets.

Foray in Kolkata

The company is also expecting to enter the gas starved West Bengal market shortly by opening three company-owned and -operated auto LPG outlets in Kolkata.

Calcutta High Court has already ordered conversion of all auto-rickshaws and commercial vehicles in the State to CNG and LPG.

Spice has emerged the highest bidder for opening auto LPG outlets on three plots belonging to the Calcutta State Transport Corporation on a long-term lease rental basis.

The tender opened in December is yet to be awarded.

“Our retail outlet tally in the country is expected to reach close to 90 by the end of the next fiscal,” Mr Raman K. Chauhan, Chief Executive Officer, Spice Gas, told Business Line.

“Overall we plan to have 25 per cent company-owned outlets and the rest would be owned and operated by dealers,” he said.

Spice has existing arrangements with Shell and Indian Oil Petronas Pvt Ltd for procuring LPG.

The company has also taken over a bottling and storage facility on a lease rental basis.