CGD needs staying power and strong sponsorship – 27 Mar 2025

The CGD industry, particularly for new entrants, is not an easy one

The amount of subsidized gas is likely to go down, and there is always uncertainty down the line about government policy

What really makes a big difference is if you a big ticket outside sponsor who is willing to back you up all the way, like this one did with a Rs 600 crore backstop

Then the sailing is smooth

Eventually any PE investor will be looking for an exit, and it will usually be a public sector company which will buy it out, though that is not going to happen any time soon