Indian Oil Petronas Pvt Ltd to venture into gas transportation, fuel retailing biz: SM Vaidya

• Vaidya said that the diversification plan can be viewed as a monetisation of Indian Oil's fuel marketing business
• Indian Oil Petronas Pvt Ltd will set up petrol pumps and get into city gas distribution businesses and will capture new business opportunities, said the Indian Oil Chairman

New Delhi: Indian Oil Petronas Pvt Ltd (IPPL) is now set to enter into natural gas transportation and fuel retailing business as Indian Oil's Board of Directors has approved a diversification plan, said Indian Oil Chairman SM Vaidya on Friday. Interacting with the media at a press conference, Vaidya said, "The Board of Directors has approved Indian Oil Petronas Pvt Ltd' diversification into natural gas transportation and fuel retailing business." IPPL is a two-decade-old joint venture promoted by Indian Oil and Petronas Malaysia with 50:50 equity.

Indian Oil Petronas Pvt Ltd is currently engaged in import, storage and bottling of liquefied petroleum gas (LPG). 

'Diversification a kind of monetisation of Indian Oil's fuel retail biz'

While stating that Indian Oil Petronas Pvt Ltd intends to have a separate brand identity for its fuel retail business, Vaidya said that the diversification plan can be viewed as a monetisation of Indian Oil's fuel marketing business. On being asked if the business decision would not cannibalise on Indian Oil's existing fuel retail business, the Indian Oil Chairman dismissed such concerns by saying, "The entire energy pie is increasing so there is no question of cannibalising. We intend to get the best practices of global companies into India. But it will not be at the cost of out own market share."

Indian Oil Petronas Pvt Ltd will set up petrol pumps, get into CGD biz

Vaidya said that Indian Oil Petronas Pvt Ltd will set up petrol pumps and get into city gas distribution businesses and will capture new business opportunities. The Indian Oil Chairman, however, refused to divulge more details on the timelines, investments and sourcing of fuel, saying that it would be pre-mature to comment on these things at this stage.

Petronas (Petroliam Nasional Berhad) is the national oil company of Malaysia. The joint venture, Indian Oil Petronas Pvt Ltd, came into existence in August 1997 with an agreement under the aegis of the Ministry of Petroleum and Natural Gas and was formally incorporated on December 3, 1998, by the formation of a private limited company, with an agreement of 50:50 equity participation of both the promoting companies.

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