The Hindu Business Line : Indian Oiltanking plans terminal facility in South

INDIAN Oiltanking Ltd (IOTL), a 50:50 joint venture between Indian Oil and Oiltanking GmbH of Germany, is setting up a Rs 600-crore terminal facility for crude oil and refined petroleum products in South India.

The project will support the proposed six million tonne refinery of Nagarjuna Oil Corporation at Cuddalore, Tamil Nadu, in which IOTL will have a minority stake.

While not confirming the location of the facility, sources said that the board of IOTL had already approved the project and is awaiting the financial closure of the refinery, which is expected shortly.

The sources said that the company would set up single buoy mooring facility for unloading crude oil, and a marketing terminal for the refined product. The project is expected to boost IOTL's turnover to well beyond Rs 500 crore, and provide a major impetus to bottom line growth, likely to be between Rs 30 and Rs 50 crore.

IOTL registered a net profit of Rs 14 crore on a turnover of Rs 273 crore in the last fiscal. The group turnover, which includes contributions from Stewarts & Lloyds and Zuari Indian Oiltanking (ZIOL), is Rs 338 crore.

The company had acquired 55 per cent stake in S&L in December 2004. ZIOL, a JV with Zuari Industries, offers terminalling services to oil marketing companies in Goa. Overall, the IOTL group offers its services from 14 locations in the country including Mumbai and Chennai (LPG).

Apart from terminalling facilities, IOTL has an engineering procurement and construction division, which is currently executing orders worth Rs 500 crore in the traditional areas of terminal facility or tankage and also in fields such as piping, crude oil dehydration plant, gas station construction and so on.

With investments pouring into sectors such as power, metal, oil and natural gas, and also infrastructure development, the company is expecting further growth in EPC business in the future.

While terminalling services will continue, the company is now striving to strengthen its engineering and equipment manufacturing capacities.

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