Sources says that Torrent is set to acquire 49% stake in Haryana-based Mahesh Resources marking its foray into CGD business
The Sudhir Mehta-led Torrent Group, which has been eyeing opportunities in City Gas Distribution (CGD) business for over a decade, is finally set to realise it. The company is set to acquire stake in Mahesh Resources, which is setting up a gas distribution network in Pune.
Sources said that Torrent is set to acquire 49 per cent stake in Haryana-based Mahesh Resources marking its foray into CGD business.
"Talks have been completed, and the deal will be signed next month. Mahesh Resources is a very small company, but it will allow us to enter the new business. It will be like a platform for the same," said a senior official of the company.
The official declined to reveal the deal size, but said that it was to the tune of a "few crores".
The development comes at a time when the Petroleum and Natural Gas Regulatory Board (PNGRB) has identified 174 Geographical Areas (GA) for 9th Round of CGD bidding, including nine districts in Gujarat.
Torrent, which is present in power and pharma business, has been on the lookout for CGD opportunities since 2002, when it had bid for gas distribution rights in Ahmedabad. However, Adani had ultimately emerged the winner.
Torrent had taken another shot at the CGD business by bidding for majority stake in Gujarat Gas in 2012 after BG decided to exit the company. However, it was again unsuccessful, as Gujarat government owned GSPC Group emerged as the successful bidder.
Mahesh Resources had won authorisation for the Pune (rural) geographical area in May 2015. At present, the company is in the process of setting up the infrastructure in the city.
Torrent is the third large corporate house from Ahmedabad to foray into city gas distribution business – the others being Adani Group, and Cadila Pharma Group.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "Sudhir Mehta")
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}