Confidence Petroleum India Ltd. (Confidence Petroleum) was earlier called Devarsa Gas Chem Ltd.. The company was incorporated in Jul.'94 as a private limited company, and converted into a limited company in Sep.'94. The company was promoted by Ashok Jain and Narendra Mohnot.
The company came out with a public issue in Feb.'95 to set up two LPG bottling plants near Pali and Udaipur in Rajasthan.The company saw a change in management in 2003-04 when it was taken over by Nagpur based Khara group, a large player in the LPG business. Khara Group has interests in the manufacture of cylinders and bottling of LPG cylinders.After the takeover of the company from its originals promoters, the Khara group is trying to infuse new life into the company by taking various steps – these include aggressively adding new businesses by setting up more bottling plants and amalgamation of a private company of the promoters with Confidence Petroleum. The company is amalgamating its private company, Confidence Cylinders and Petrochem Pvt. Ltd. (Confidence Cylinders). After the amalgamation, Equity Capital of the company will increase to Rs.15.75 crores from Rs.5.25 crores currently and post merger equity stake of the promoters will go up to 75%. As per the Annual report of the company for FY 04-05, Confidence Cylinders and Petrochem Pvt. Ltd. is having Asia's single largest cylinder manufacturing Plant near Mumbai and five LPG bottling Plants. These plants cater to the demands of public sector oil majors namely BPCL, HPCL & IOCL. The financials of Confidence Cylinders are not available in public domain, however the very fact that the company owns Asia’s single largest cylinders manufacturing facility, it should have a decent topline. In a communication to BSE, the company had informed that M/s. Confidence Cylinders & Petrochem (P) Ltd received orders worth Rs 45 crores from Indian Oil Corporation Ltd (IOCL) and Bharat Petroleum Corporation Ltd (BPCL) for supply of 14.2 Kg. LPG Cylinders. Also, HPCL has conferred on the Company an order for providing LPG Cylinder bottling assistance in Himachal State for which the Company is putting up a new bottling plant at Baddi, Himachal Pradesh. The company has also informed that it is putting up bottling plants for providing LPG bottling assistance to HPCL at Coimbatore, Roorkee and Chindwara. (MP) At present the company has 42 bottling plants spread across various locations in the country and has plans to aggressively establish more bottling plants. Buy at CMP of 6.40 /- ..............A Future Multibagger in 3-4 yrs.
