IOC, Total form Rs 226 crore JV for speciality bitumen

NEW DELHI: India’s largest oil refiner and fuel retailer IndianOil on Monday announced an equal joint venture (JV) with French energy major Total for manufacturing speciality bitumen derivatives with an eye on the country’s rapid expansion of road infrastructure, including the Rs 5 lakh-crore ‘Bharatmala’ project.
“The JV will kick off by taking over Total’s plant at Jodhpur and set up six greenfield units at Panipat, Koyali, Haldia, Barauni, Visakhapatnam and Chennai at an investment of Rs 226 crore in the first four years,” a company statement quoted chairman S M Vaidya as saying. The JV will also explore the possibility of catering to other South Asian markets.
The move is part of Vaidya’s strategy to expand IOC’s business footprint by “forging meaningful relations”. IOC is the largest player in the Indian bitumen market, while Total is the leading bitumen manufacturer and supplier in Europe. The two are already working together in areas of LPG and fuel additives.