Dear Fellow Shareholders,
On behalf of the Board, it''s my pleasure to present to you the 2011
Annual Report of Confidence Petroleum India Limited. Completing 16
years since its establishment, ''CPIL'' has recorded another successful
year. ''CPIL'' is positioned as a reputed cylinder manufacturer, LPG
bottler and bottling assistance provider in private sector in India.
''CPIL'' has reported the highest-ever growth in 2010-11 with record
operating and financial results from each of the three core segments of
Cylinder Production, ALDS (Auto LPG Dispensing Station) and Bottling.
''CPIL'' achieved a record turnover of Rs. 1153.78 and ''PAT'' Rs. 67.26 as
against Rs.553.84 crore and Rs.29.82 crore in 2009-10 respectively.
With this, ''CPIL'' has developed a unique position for itself in the
market and is on the right track to increase its growth momentum.
''CPIL'' has opened up the manufacture and bottling of eco-friendly and
cost-effective fuels (LPG and CNG) that protect the environment and
reduce cumulative energy expenses. ''CPIL'', with its foresightedness,
developed core strengths in providing com- plete LPG infrastructural
facilities to Major Public Sector Undertakings in this field. ''CPIL''
has progressed on its strat- egy to bring in accredited partners to
jointly develop its exist- ing or potential new businesses. ''CPIL''
developed expertise in manufacturing and refilling cylinders,
installing auto LPG dispensing stations (ALDS), providing engineering
and also developed its own marketing network.
''CPIL'' took several strategic initiatives during the year. ''CPIL''
entered into partnerships with localites in various cities to set up
ALDS and also to establish Bottling Plants all over India. ''CPIL'' is
building new competencies which will be the basis for a larger
footprint in the future. The globalization is on its peak now a days
that was not imaginable a few years ago. India is one of the vast
markets where consumption of LPG/CNG is increasingly growing year to
year. In the current uncertain global economic environment, the
performance of Indian economy has been quite strong. Growth in Indian
economy and demand creates unpredicted opportunities for the Company to
invest significantly in each of its core businesses, including those
that leverage directly from growth in consumerism and increase in
consumption. Also, demand for petroleum products in India has
increased, reflecting a growth of 2.8% in financial year 2011.
As a growing organization, ''CPIL'' making the most of the situation
taking initiatives from:
- Company has developed unique position in the market globally by
starting production of CNG cylinders at SEZs.
- Focusing to establishing 250 auto LPG dispensing stations (ALDS)
across India in upcoming years
- Establish new Bottling plant in overseas Market in Indonesia as PT
MULTI ARTHA MANDIRI, a subsidiary of P. T. SURYA GO GAS, INDONESIA,
which is a subsidiary of Confidence. Due to this new bottling plant our
Bottling capacity has increased to the tune of 3000 MT/month.
- Signed global Joint Venture for Gas Meters with Zhejiang Chint
Instrument & Meter Co. Ltd, China.
- Plans to launch its new product Auto LPG Kit (2/3/4 wheelers) all
over the India.
''CPIL'' sets out preemptive measures for preventive gas interruption to
the least levels by adopting a high integrity management plan and
fail-safe concepts. ''CPIL'' is also committed to promote the highest
levels of Health, Safety, Environment, and Loss Control in the areas of
its business with clear emphasis on improving the environment for
sustainable development. ''CPIL'' is investing in upstream, city gas
distribution, and renewable energy to diversify our revenue stream and
to take advantage of emerging opportunities. ''CPIL'' has continuously
utilized technology to improve offerings to customers and to improve
business processes. ''CPIL'' is gearing up for the next phase of growth
through a combination of our own initiatives and forging new
partnerships with leading concerns.
To conclude with this, I am thankful to Board of Directors for their
firm support and assistance, I take this opportu- nity to express my
appreciation to all our stakeholders, employees at all levels of their
continuing hard work and commitment towards the company. I must assure
that ''CPIL'' will continue to drive its expansion opportunities towards
a value-driven focus on business growth.
Chairman and Managing Director