Ganesh Benzoplast - Cash rich chemical storage/tank king

1 Like

Does any one attended the l
Q3 concall? If attended please share your input.

I glanced over the concall transcripts.
Can anyone confirm if my understanding is right?

  • LST will show growth of 6-8% for the next few years.

  • chemical business is at around 65% utilization levels. It will be gradually ramped up to 90% over the next year. Margins can be potentially around 15-18% at that capacity.

-capex of around 400-450cr to add refrigerated tanks for LPG? This will be constructed in a couple of years and revenues will start to flow by fy26,

Is my understanding right?


Here are my notes from Q3 concall


  • LPG expansion: Will be able to handle entire VLGC load of 40,000 tons. Planned capex of 400-450 cr. with a payback of 4-5 years. Ganesh Benzoplast will invest 100-150 cr. through internal accruals with remainder coming from debt
  • Chemicals: Operating at 68-70% capacity utilization. Took 8-9 days shutdown in December. Utilization should increase to 90% in FY24. At full utilization, net profit margins can reach 20%
  • Spot sales are 20%, with 80% from long-term contracts. Have 5-8% escalation clause in long term contracts
  • New storage capacity at JPNT should bring in 14-15 cr. revenues in FY24 (rates will be higher at 750-800/kl vs existing rates of 400-450/kl). These should be operational by April 2023 and EBITDA margin will be 70-80%
  • FY24 growth drivers: 7-8% price escalation in existing storage terminals + 12-15 cr. from new terminals + increase in utilization of chemicals division
  • Customers: Cargill, Golden Agri (nonchemical industry), CJ Shah, Jubilant, Pidilite, Deepak Fertilizers (chemical industry)
  • Ethanol: Installed capacity is 100 KLPD. Plant operates for 270 days. Company owns 26% stake. Ethanol rates ~ 61 per litre (so around 61 lakh revenues per day)
  • Goa utilization was higher at 60-70% vs 20-25% earlier due to export of molasses
  • For liquid storage tanks, have been allotted 11,500 sq.m land in Mangalore port

Disclosure: Not invested (no transactions in last-30 days)


plans for LPG to have capacity of 80k to 1L, right?

1 Like

Q4FY23 Highlights

  • MoU with JM Baxi - exclusive access to a jetty at JNPT - save costs for the customers - will lead to better stickiness
  • LPG Expansion - will only go forward with this if contracts are in place - looking at other avenues as well like ammonia or another set of specialised tanks
  • Rental Yields - expect a 5-10% increase - New tanks will start contributing from Q2
  • Land at Mangalore Port - in the process of taking the land - 2-3 options lined up for what to do with this
  • Cochin and Goa - Cochin capacity will return to 90+% utilisation as the significant changes are now done. Goa will remain at low levels because of the mining ban
  • Chemical - Utilisation at 70-75% for FY23 - will be increasing it steadily by 4-5% each year - giving out profits now which is a good sign

Only a few people were on the call, and it ended within 30mins.


is this news or an old case? Settlement agreement date is 6/12/22 but article came out yesterday

My notes from the past few calls.

FY23Q4 concall

  • LPG: Have taken approvals for raising 300 cr. but wont execute project unless they have a signed contract with customers. Generally, LPG facilities are first constructed and then you get contracts with the PSUs. Don’t want to go that route
  • Also considering other high value products like ammonia or expanding more in set of chemical tanks if LPG business doesn’t pan out
  • Signed up an exclusive arrangement with JM Baxi to use their jetty to handle liquid cargo operations at JNPT. Access to exclusive jetty will reduce wait times and lead to better stickiness with customers since customers will save substantial cost in terms of berthings and in terms of cargo handling
  • For existing tanks, expect to get 5-10% annual increment in rentals
  • New tanks will commercialize around June 2023
  • Cochin utilization: 95%. Has fallen by 5-10% because of change over in tanks to a different product
  • Goa utilization: 30-40%. Goa terminal stored fuel and used to be a bunkering terminal for refueling ships
  • EPC: GBL Infra and GBL LPG handle all EPC related projects. Currently doing expansion work for the parent company. Have 2-3 customers and looking to add another 2-3 customers over next six months
  • EPC division is more of customer service rather than profit center, make 5-10% profits
  • Chemicals: 70-75% utilization which will increase to 75-80% in FY24


  • 19 chemical tanks of ~18,000 kl are operational (capex was 50 cr.). No contribution in Q1FY24. Annual rental contribution will be 11-12 cr. with 70-75% EBITDA margin (vs existing tanks generating 50-55% EBITDA margin). Earlier used to say 15-18 cr.
  • At full utilization at JNPT, Cochin and Goa terminals (excluding current tank addition), can expect 138-140 cr. annual revenues + 10-12 cr. from new tanks. So ~ 150 cr. annual rental revenue at full utilization
  • Large jump in consolidated revenues in last 2-quarters was due to consolidation of EPC revenues for building the tanks. EPC division generated 70 cr. revenues, very low margin
  • LPG: In advanced stage of signing contract with one customer. 48’000 MTPA static capacity; looking for a 15 year contract for 12x turns of static capacity. Planning to reach 36x asset turns which will generate 180-200 cr. of revenues and 130-140 cr. EBITDA. Most LPG terminals run at 70-75x fixed asset turns
  • They can handle one entire VLGC at JNPT
  • LPG: Project will cost 500 cr. and will be 30% funded by equity (~90 cr.) and 70% by debt. Will look to raise QIP of upto 100 cr. Will likely commercialize project by end of 2025 (and start work in September or October)
  • LPG project will use up most of their land at JNPT
  • Deepak Fertilizer is not a customer for ammonia. Deepak themselves have their own tank in JNPT for ammonia and have recently put up a plant to manufacture ammonia
  • Chemical: One plant was shut for 12 days in June quarter due to maintenance activity; prices of finished goods have fallen by 20-25% but raw material has not fallen. This has reduced profits by 1 cr. in Q1
  • Gross debt in August: 8-9 cr. (40 cr. in fixed deposit)

Disclosure: Not invested (no transactions in last-30 days)


Thanks for these notes. Very helpful.

Do you have a view on the growth runway for them in the tanks business?

Also I believe there is a typo in relation to the point on Deepak Fertilisers because I believe the management mentioned that it is “not” a client for ammonia as they have their own tanks for that.

1 Like

Can any one share concall updates?

Company came with flattish nos, with EBITDA growing by 20%+ and EPS by 6%
The final growth lever remains their newly commercialized tanks, which should contribute 7-8 EBITDA annually (so around 2 cr. incremental EBITDA quarterly). Concall notes below.


  • New tank of 19,000 kl started operating at end of September and didn’t contribute in Q2, will start contributing in Q3
  • LPG: very close to finalizing throughput contract
  • Dip in reported revenues is due to EPC division which works on small margins. That’s why there is no impact on EBITDA despite drop in sales
  • 7% YOY growth in rental income
  • Arbitration award of ~12 cr. (including interest) granted in favor of Ganesh Benzoplast (in an old case against ONGC)

I think tanks is a 12-15% kind of sales growth business. If you look at Aegis’ tanks business (much larger geographical footprint), long term growth has been around 15%.

Disclosure: Not invested (no transactions in last-30 days)


finally they have announced the development of LPG terminal in a a 50% JV with Confidence petroleum and BW…plus a fund raising to fund construction of the same as they had told in the last concall


Promoters infusing money at a higher price compared to QIBs. Good Corporate Governance

4e1d0483-e38d-4575-946f-07fcbf4ddd5c.pdf (251.3 KB)


Ganesh Benzoplast finally announces their new LPG terminal in JV with Confidence Petroleum and BW LPG Holding. I have captured the notes about this below.

06.12.2023 LPG terminal @JNPT

  • LPG terminal will be the largest cryogenic storage terminal at JNPT
  • Malabar invests 27 cr. @160 share price and promoters infuse 3.15 cr. @175 share price
  • LPG terminal will cost 550-600 cr. for 60,000 ton (~120’000 kl) static capacity which will contribute to 150-200 cr. sales (70-75% EBITDA margins). Will be funded by 350-400 cr. debt, with rest coming from internal accruals & fund raise of 30 cr.
  • Terminal should be commercialized by Q1FY26
  • It’s in a JV with Confidence Petroleum and BW LPG Holding (50% shareholding for Ganesh, 45% economic interest for Ganesh)
  • Confidence BW will guarantee certain monthly volumes from LPG terminal
  • Cargill uses their railway terminal at JPNT, this terminal will also be used for LPG
  • Cochin and JPNT are running at 100%+ utilization, Goa utilization is 40-50%

Disclosure: Not invested (no transactions in last-30 days)


20 lakh shares allotted to Mr Anil Kumar Goel @ Rs 162/=
The big investors are bullish about the company keeping inview the upcoming LPG terminal at JNPT port.


Company got an arbitration award of Rs 19 crores.


With recent Funds mobilization by the company by FPIs, Promoters and Non Promoters, the company is poised to grow with capacity increase. Currently their Liquid Gas Storage Tanks are operating at 100% capacity.


Kindly explain the “reducing their stake part”. Till Dec 2023, Malabar India Fund Limited held 1,767,341 shares in the company which they have been holding since March 2023. Since January 2024, they hold 3,467,341.

1 Like

Thanks for correcting me…