Sanmit Infra Ltd board approves proposal for setting up bio CNG plant

Mumbai (Maharashtra) [India], January 11: Sanmit Infra Ltd, a leading company engaged in the construction of real estate projects, supply of petroleum products and biomedical waste management, is planning to set up a bio CNG plant under the Sustainable Alternative Towards Affordable Transportation scheme (SATAT). The board of directors, at a meeting, has approved the proposal and the company expects to start work on the same soon. The project is part of the multiple expansion in its business operations that the company is planning for the next 2-3 years.

The board feels that the bio CNG project will support national commitments to achieve climate change goals and reduce the import of natural gas and crude oil while saving a lot of foreign exchange. It can also stand as a buffer against crude oil/gas price fluctuations in the international market making the country self-sufficient.

Highlights:-

• The bio CNG project will support national commitments in achieving climate change goals and reduction in import of natural gas and crude oil and saving a lot of foreign exchange
• The company intends to initiate bulk storage facilities for direct bitumen imports from Gulf countries
• The company is diversifying sales in the biomedical waste disinfection system across India 
• The company is planning to initiate an eco-friendly, less wood, or green cremation system
• For H1FY24, the company has reported sales of Rs 52.5 crore with a net profit of Rs 1.57 crore

The government launched the SATAT scheme in 2018 with the objective of setting up compressed biogas production plants and ensuring its availability in the market for commercial use in the automotive sector that will reduce the pollution levels substantially. It aims to promote entrepreneurship, the rural economy as well as employment.

In the next 2-3 years, the company is planning multiple expansion measures, including bitumen expansion and diversification of sales in the biomedical waste disinfection system across the country. It is planning to initiate an eco-friendly, less wood, or green cremation system (GMS) as a pilot project for various crematoriums in India.

For Q2FY24, the company reported a net profit of Rs 1.05 crore on total income of Rs 18.91 crore and EBITDA of Rs. 1.97 crore. Its EBITDA margin in Q2FY24 increased to 10.4 per cent from 4.3 per cent in Q2FY23.

For H1FY24, the company reported a net profit of Rs 1.57 crore on total income of Rs. 52.47 crore with EBITDA of Rs. 3.22 crore.

Its promoter group holding, as of September 2023, stands at 72.33 per cent.

In FY23, the company split its shares with a face value of Rs 10 into a face value of Re 1.

For FY23, the company has reported sales of Rs 140 crore and a net profit of Rs 5 crore.

Established in 1965, Sanmit Infra Ltd is engaged in the disposal of biomedical waste, the supply of petroleum products, and the construction of real estate projects.

The company diversified into real estate in 1994 and successfully executed projects in Mumbai and other cities of Maharashtra with upcoming developments in Mahim, Karjat and Navi Mumbai. In petroleum, the company supplies products like bitumen, lubricants, light diesel and base oil.

During the COVID-19 pandemic, the company ventured into dealing with microwave disinfection systems for hospital waste. It has successfully piloted various municipal and railway hospitals, including Brihanmumbai Municipal Corporation (BMC) and Pune Municipal Corporation (PMC), and is planning to expand the biomedical waste disinfection system across the country. The company's microwave disinfection system is utilising dual technology, combining ultraviolet radiation to efficiently destroy bacteria and viruses present in biomedical waste.

In the bitumen segment, the company plans to further expand, and intends to initiate bulk storage facilities for direct bitumen imports from Gulf countries. It aims to purchase a minimum one acre plot near JNPT Port, where bitumen importation occurs. This move will facilitate the establishment of a decanting unit, allowing it to purchase bitumen in drums and convert it into bulk bitumen.

The company is also planning to initiate an eco-friendly, less wood, or green cremation system (GMS) as a pilot project for various crematoriums in the country. The GMS system upgrades the traditional open-air wood fire system, adhering to Hindu traditions. By replacing wood with bamboo pellets, which have high calorific value and generate minimal ash, pollution levels will significantly decrease. This eco-friendly approach saves trees, forests, and reduces carbon credits, making a positive impact on the environment and society.

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