R. K. Garg, now director of finance at Petronet LNG, has seen the company very closely for nearly two decades. He joined the firm as vice-president of finance and company secretary in 2001 after a 23-year-old stint in SAIL. “It was a challenge adjusting to our (Petronet LNG) unique business model as we had to perform like a multinational, while our systems and processes had to be as that of a private company even as we were partially owned by the Navratnas,” says Garg.
It was an important phase for the company when it was setting up its first plant in Dahej, Gujarat. “We had to raise finance for the project on our own. We had to convince potential financiers about the viability of our project. Finally, we got them — SBI, ADB and IFC — on board and completed the project in time,” recalls Garg.
The infrastructure was developed in the shortest possible time and at a benchmark cost. The capacity of the terminal — commissioned in June, 2009 — has been expanded to 10 MMTPA. The expansion involved construction of two additional LNG storage tanks and other vaporisation facilities. The terminal is meeting around 20 per cent of the total gas demand of the country.
The project was followed by the Kochi terminal, which has a capacity of 5 MMTPA (equivalent to 20 MMSCMD of natural gas). The company is now in the process of building a third terminal at Gangavaram, Andhra Pradesh.
In 2009, Garg was given the additional responsibility of heading the legal and IT team as the management was pushing for a leaner structure. He was later anointed as the director of finance of the company in 2011 — a role he perfected with his experience that profited the company.
Petronet LNG reported profit after tax of Rs 397 crore in the quarter ending 31 December 2016, which is a 133 per cent rise (from Rs 171 crore) over the corresponding quarter last year. The increase in profit is due to higher volumes processed and better efficiencies achieved in operations.
The company further registered the highest ever profit of Rs 1,235 crore over the nine-month period ending 31 December, 2016, compared to Rs 668 crore in the corresponding period last year — witnessing a growth of 85 per cent. In the past, the highest ever PAT for any complete financial year has been reported at Rs 1,149 crore.
Recently, Petronet LNG bought a 26 per cent stake in LNG Transport Company, a shipping consortium that built its biggest vessel to transport gas from Australia for about Rs 100 crore.
“We have also decided to take 26 per cent equity in India LNG Transport Company (No 4),” says Garg.
Petronet in 2013 had contracted Shipping Corporation of India (SCI) and its Japanese partners to build and operate an LNG vessel with capacity of 173,000 cubic meters.
The company now plans to set up plants in Bangladesh and Sri Lanka.
Sixty-one-year-old Garg is at the helm for six more months before he retires. He has no set plans as of now and is taking one day at a time.
