Ganesh Benzoplast Limited (GBL) has announced the termination of its joint venture for the JNPT LPG storage terminal project, citing evolving global and domestic LPG offtake outlook. The company has successfully concluded two significant transactions as part of this strategic move.

Joint Venture Termination Details

GBL, in agreement with BW Confidence Enterprise Private Limited (BWC) and Confidence Petroleum India Limited (CPIL), has mutually decided to end the joint venture. This decision comes after evaluating the project's viability in light of changing market dynamics.

Financial Transactions

As part of the termination process, GBL has completed two key financial transactions:

1. Share Transfer: GBL LPG Private Limited, a wholly-owned subsidiary of GBL, has sold its entire shareholding in GBC LPG Private Limited to BWC for Rs 46.60 million.

2. Non-Compete Fee: GBL received a non-compete fee of Rs 99.50 million from BW LPG Holding Pte. Ltd. to safeguard BW's strategic position in India.

The total value of these transactions amounts to Rs 146.1 million.

Strategic Implications

Despite the joint venture termination, GBL maintains that the JNPT land parcel remains a key strategic asset. The company has outlined its plans for the site:

1. Initiation of construction for additional storage tanks to increase capacity by approximately 1,00,000 KL.
2. Utilization of the remaining land for ammonia and chemical storage.
3. Reservation of a portion of the land for future expansion of LPG, ammonia, or liquid cargo facilities.

Financial Performance Context

To provide context on GBL's financial position, here's a snapshot of the company's recent performance:

The company has shown strong year-over-year growth in key financial metrics, which may provide a solid foundation for its strategic decisions and future investments.

GBL's decision to exit the joint venture while retaining the strategic JNPT land asset demonstrates the company's adaptability to changing market conditions. The additional financial inflow from the transactions may support GBL's plans for expanding its storage capacity and diversifying its operations at the JNPT site.

Ganesh Benzoplast Limited (GBL), a leading provider of liquid storage terminal services and chemical manufacturing, has reported a robust financial performance for the first half of fiscal year 2026, coupled with ambitious expansion plans.

Financial Highlights

GBL achieved a consolidated profit after tax of INR 419.00 million in H1 FY26, marking a significant 26% increase from INR 329.00 million in the corresponding period last year. The company's quarterly earnings per share (EPS) saw an impressive 44% rise to INR 3.30.

Expansion Plans

In a strategic move to enhance its capacity, GBL has commenced construction of 30,000 tons of A-class petroleum tanks. This expansion represents an investment of approximately INR 40.00 crores and is expected to yield significant returns:

• Anticipated monthly rental: INR 400-500 per KL
• Projected EBITDA margins: 90%
• Estimated annual revenue: INR 12-15 crores

Operational Performance

The company's Liquid Storage Terminal (LST) business continues to perform well, with JNPT and Cochin facilities operating at nearly 100% utilization. However, the Goa facility remains underutilized at about 5-10% capacity.

Future Outlook

Ganesh Benzoplast is actively exploring options for further expansion on its available land at JNPT. The company is considering various possibilities, including LPG, ammonia, and cryogenic storage facilities, with potential CAPEX ranging from INR 150.00 crores to INR 500.00 crores, depending on the final product mix.

Challenges and Opportunities

The company faces a significant increase in lease rentals at its JNPT facility, rising from approximately INR 3.00 crores to INR 18-20 crores annually. However, management expects to offset this impact through price increases and new capacity additions over the next 2-3 years.

Management Commentary

Rishi Pilani, Chairman and Managing Director, stated, "We are committed to finding the most optimum solution for our expansion plans, ensuring the best return on investment for our shareholders. Our focus remains on steady growth and maintaining our strong market position in the liquid storage terminal business."

As Ganesh Benzoplast Limited navigates through increased costs and expansion opportunities, the company appears well-positioned to capitalize on the growing demand for liquid storage facilities in India's bustling port sector.