### **1. Expansion into New Energy Verticals** MGL is executing a long-term strategy to diversify beyond city gas distribution, targeting **25% of future revenue from new business lines**. #### **a) Electric Mobility & Battery Manufacturing** - **Joint Venture with International Battery Company, Inc. (USA):** - Formed **International Battery Company India Pvt. Ltd.**, a technology-agnostic gigafactory in Bengaluru. - Initial capacity: **1 GWh** (expandable to **5 GWh**), manufacturing **prismatic NMC lithium-ion cells**. - Applications: **2W/3W e-vehicles** and **Battery Energy Storage Systems (BESS)**. - MGL committed **₹350 crores** for a **44% stake**; construction began in Jan 2025. - Aims to reduce India’s dependence on imported battery cells and position itself at the frontier of **solid-state and sodium-ion battery innovation**. - **Investment in 3EV Industries Pvt. Ltd.:** - Acquired **~24.5% stake (up to ₹96 crores)** in the Bangalore-based EV startup manufacturing electric three-wheelers (L5 category). - Focused on **last-mile delivery for e-commerce** (Amazon, Flipkart, Porter). - Investment led to **~200% revenue growth** and **~90% sales growth** for 3EV in FY25. #### **b) LNG Retail for Long-Haul Transport** - **Mahanagar LNG Pvt. Ltd. (MLPL)** – 51:49 JV with **Baidyanath LNG**: - Commissions **LNG stations** for medium- and heavy-duty trucks. - **First station:** Aurangabad (Oct 2024); **2nd operational:** Seoni, MP (Mar 2025). - Plans to open **4 new stations in FY26**; **26 by 2030**. - Targets **15–20% market share** on key highways (Mumbai-Pune, Mumbai-Nashik). - Projects **135,000 kg/day sales by 2030**, generating **over ₹1 crore daily revenue**. #### **c) Renewable & Low-Carbon Fuels** - **Compressed Biogas (CBG):** - Developing a **major CBG plant in Mumbai** using municipal solid waste in partnership with MCGM. - Securing third-party CBG supply to meet **blending mandates** and promote domestic biofuel production. - **Green Hydrogen:** - Planning a **pilot green hydrogen project** for **pipeline blending** and **hydrogen dispensing**. - Strategic exploration of **green hydrogen integration** into future energy offerings. - **Solar Power:** - Developing a **solar power plant** with a third-party partner to meet **captive energy needs** from renewables. --- ## **Inorganic Growth & Geographic Expansion** ### **Acquisition of Unison Enviro Pvt. Ltd. (UEPL)** - Acquired **100% stake** for **₹562 crores** (closed 2024), expanding MGL’s footprint by **~37,400 sq. km**. - Added **Ratnagiri, Latur-Osmanabad (Maharashtra)**, and **Chitradurga-Davanagere (Karnataka)** to operational areas. - UEPL’s **record 330,330 domestic PNG connections (FY23–24)** set a national benchmark. - Post-acquisition expectations: - CNG stations to grow from **53 to 82 by Mar 2025** and **>100 by FY26**. - **2.5x increase in gas sales volume**. ### **Geographic Advantages** - **Uninterrupted Mumbai–Goa corridor**: 340-km CNG/LNG supply link from Mumbai to Ratnagiri. - **Contiguous GAs**: Infrastructure synergies reduce logistical costs and improve rural/semi-urban connectivity. - Positioned to benefit from **Samruddhi Expressway** and **Virar–Alibaug Multimodal Corridor**. --- ## **Core Business Strength: CGD & Infrastructure Development** ### **Infrastructure & Operations** - **Pipeline Network:** **7,460 km** (steel & PE). - **CNG Stations:** **111 company-operated + dealer outlets**, including 5 co-located at **Jio BP**. - **City Gate Stations (CGS):** - 5 CGS operational, including **Savroli CGS (GA-3)**. - 3 new land parcels acquired for CGS expansion in GA-3 and South Mumbai. - **LPG Replacement Initiative:** Aims to **fully replace LPG** for commercial users by **2030**. - **New Build Targets (Next 5 Years):** - **350 km steel**, **1,600 km PE pipelines** - **200 new CNG stations** - Capital expenditure: ~₹800–1,000 crores annually. ### **Customer & Sales Growth** - **CNG Segment:** - **40 new filling stations** added in FY25. - **Daily sales: 2.8 MMSCMD**. - **CNG Mahotsav 2.0** contributed to **17.8% YoY increase** in commercial vehicle (CV) sales. - **PNG Segment:** - **"KHUSHIYAN LAKHON KI"** lucky draw campaign boosted domestic connections (Nov 2024–Mar 2025). - Special initiatives for **SRA redevelopment, low-income housing, and undelivered flats**. --- ## **Gas Sourcing & Supply Strategy** ### **Diversified & Cost-Optimized Procurement** MGL manages supply through a portfolio approach: - **Domestic Gas:** APM, HPHT (low-cost, government-allocated). - **Imported LNG:** Term contracts (3–5 years) linked to **Brent/JKM/Henry Hub**; spot purchases via **IGX**. - **Framework agreements** with **GAIL, IOCL, BPCL, Shell, Adani Total, RIL-BP**. - **Monthly tenders** for spot RLNG on "firm" or "reasonable endeavor" basis. - **Data-driven forecasting** using analytics, market intelligence (FIPI, Bloomberg), and supplier collaboration. ### **Supply Security** - **First-mover advantage** in **HPHT gas bidding** under MoPNG policy (Jan 2023). - **APM cap at $6.5/MMBtu** ensures stable pricing for core customers. --- ## **Digital Transformation & Innovation** ### **Smart Technology & App-Based Solutions** - **MGL Tez App:** - Enables **slot-based, queue-free refueling** at BEST depots. - Enhances convenience for **commercial fleet operators**. - **MGL Connect:** - Offers **digital meter reading, connection requests, payment, hydro-test info**, and station locators. - Revamped to support **Project Lakshya**, MGL’s digital and operational transformation initiative. - **Partnership with Nawgati:** - Digital fleet management at **15 COCO stations**. - Features: **ANPR, digital billing, loyalty rewards, and real-time consumption tracking**. - Startup valuation rose to **$36 million** (9x post-investment). - **AI & Automation:** - High-resolution cameras at CNG stations for **safety monitoring and marketing analytics**. - Proprietary software optimizes **CNG logistics and CTV routing**. ### **Innovative Infrastructure Models** - **Composite Dispensing Units (CDUs):** - Mobile, compact CNG refueling units in **space-constrained urban areas** (e.g., Panvel, Mumbai). - Deployed at **residential complexes, fleet garages, and commercial hubs**. - **CNG Retail Outlet Policy:** - Allows leasing land for CNG stations, **extending operational security beyond marketing exclusivity**. --- ## **Market Position & Competitive Advantages** ### **Defensible Moats** - **Exclusive infrastructure rights** in high-density urban areas. - **Contiguous GAs** enabling synergistic operations. - **30+ years of experience** in **safety, project execution, and urban deployment**. - **Strong brand trust** and **regulatory compliance record**. ### **Fuel Economics & Demand Drivers** - **CNG priced at:** - **50% below petrol** - **16–18% below diesel** - Government targets: **natural gas to 15% of energy mix by 2030**. - **OEM push:** Increased availability of **factory-fitted CNG commercial vehicles**. - Anticipated **diesel vehicle restrictions** in Mumbai to boost CNG adoption.