Sri Havisha Hospitality & Infrastructure Limited (SHHIL)

SRI HAVISHA HOSPITALITY AND INFRASTRUCTURE LIMITED (SHHIL)

[FORMERLY KNOWN AS SHRI SHAKTI LPG LIMITED (SSLPG) AND SHRI MATRE POWER AND INFRASTRUCTURE LIMITED (SMPIL)]

Sri Havisha Hospitality & Infrastructure Limited (SHHIL) [Formerly known as Shri Shakti LPG Limited (SSLPG) and Shri Matre Power And Infrastructure Limited (SMPIL)] has been engaged in business of LPG marketing since its incorporation in the year 1993.

SSLLPG were the pioneer in the field of LPG marketing and established large integrated infrastructure to carry LPG from dock (Port) to the door of customers, which consisted of dedicated port facilities, large storage terminals, network of bottling plants and distribution and marketing networks.

The company was able to do well from the commencement of commercial operations in 1995 till 1999 and became profitable. Infact the company emerged as the country's largest private sector LPG company. However, due to abnormal rise in crude oil prices during 1999 to 2000, the international LPG prices also shot up. Despite the big spurt in sourcing cost, it was not possible to proportionately increase the prices due to competition with the Government Subsidized gas by virtue of which the company incurred losses. This was further aggravated in the subsequent years due to the growing disparity in the prices between the private LPG operators and the PSU Oil Undertakings, on account of non-removal of subsidy as promised by the Government of India (GOI). The GOI did not honour its commitments to withdraw subsidy in a phased manner which led to the crisis in Private Sector LPG Industry. Because the company's dedicated customer base was much larger, it had to suffer greater losses as more sales meant more losses. Inspite of the difficult times, the company built a strong brand image viz SHAKTI GAS which is still quite popular.

The company's proposed plan for diversification into solar power generation did not materialize due to continuous decline in the prices of solar power which made the project uncertain and un-remunerative. The size of Projects have gone up steeply involving large funds. It is also noted that gestation period to realize profits is substantial and may not be suitable to the Company as of now.

The management is of the opinion that the hospitality Industry is one area with lot of potential particularly in the States of AP and Telangana. The management is also evaluating various other options including foray into the hospitality industry. The objects clause of the company is so made out as to cover the wide range of activities to enable the company to consider embarking upon new projects and activities considered to be convenient, advantageous and feasible for the company's business and also to seize the opportunity available in hospitality segment.

In view of the proposed expansion and diversification into the hospitality business the company has changed its name to Sri Havisha Hospitality and Infrastructure Ltd (SHHIL).