Indian Oil & Total form JV for manufacturing bitumen derivatives

The operations of the Indian Oil-Total JV company would commence by taking over an existing plant of Total in Jodhpur and 6 new greenfield plants will be set up at Panipat, Koyali, Haldia, Barauni, Visakhapatnam and Chennai in the first four years
Indian Oil & Total form JV for manufacturing bitumen derivatives

New Delhi: Indian Oil Corporation (Indian Oil), India's largest refiner and marketer of petroleum products, and Total, a multinational energy major with headquarters in Paris (France), have announced the formation of a 50:50 Joint Venture (JV) company on Monday. This new JV will manufacture and market high-quality bitumen derivatives and speciality products for the growing road-building industry in India.

According to an official statement released by Indian Oil, the new JV will combine the R&D (Research & Development) and marketing strengths of both Indian Oil and Total to manufacture and market innovative bitumen formulations and superior quality products such as polymer-modified bitumen, crumb rubber-modified bitumen, bitumen emulsions and other speciality products. The JV will set up manufacturing units across the country with cost-effective logistics solutions, keeping innovation, safety and sustainability at the helm of its operations. The JV will also explore the possibility of catering to other South Asian markets.

Speaking on the occasion, Indian Oil's Chairman SM Vaidya, said, "The JVC will combine Indian Oil's credentials as India's flagship national oil company and Total's strength as an international energy major. It would cater to B2B customers involved in road infrastructure development both in the government and private sectors, and I am confident that this would bring a revolution in road construction in the country by providing superior technology products at competitive prices."

"The JVC would bring in the latest technologies and formulations for polymer-modified bitumen and other fast-growing non-conventional derivatives such as cold mix and micro-emulsion, block bitumen, etc. to the Indian market. The operations of the JVC would commence by taking over an existing plant of Total at Jodhpur. It would also set up six new greenfield plants at Panipat, Koyali, Haldia, Barauni, Visakhapatnam and Chennai in the first four years. The investment planned towards these new plants is about Rs 226 crores," he added.

Total's Chairman & CEO Patrick Pouyanné, on the other hand, said, "India is a strategic country for the future of Total and we are delighted by this partnership, yet another testimony of our commitment to this fast-growing market." He added, "Today, Total is further cementing its longstanding business cooperation with Indian Oil into a strong and sustainable new partnership. With this agreement, we are pursuing the growth of businesses with key Indian energy players, adding to our ongoing developments in renewables, gas and power."

The government has a strong focus on developing the country's road infrastructure with mega projects like the 'Bharatmala' project, which envisages development of 34,800 km of roads at an estimated investment of over Rs 5 lakh crore (approx. USD 66 billion) in the first phase.

The demand for aggregate material and manufactured material for the highway construction and rehabilitation sector in India is very high, especially for good-quality bitumen derivatives. The Indian Oil and Total JV will offer high-spec products using sustainable technologies.

While Indian Oil is the largest player in the Indian bitumen market, Total is the leading bitumen manufacturer and supplier in Europe. The two companies have already established a business relationship in India, notably in LPG and fuel additives.

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