Business Daily from THE HINDU group of publications
Friday, Jun 16, 2006

Cross Currency

Group Sites

Corporate - Alliances & Joint Ventures

IOC to formalise tie-up with Nagarjuna Oil

Our Bureau

Chennai , June 15

Indian Oil Corporation intends to enter into an agreement with Nagarjuna Oil Corporation Ltd for buying petro products from the 6-million-tonne refinery that Nagarjuna is putting up in Cuddalore, Tamil Nadu.

However, the agreement will not bind IOC into a committed offtake. The PSU oil major will have the right of first refusal — Nagarjuna will have to offer its products first to IOC, Dr N.G. Kannan, IOC's Director-Marketing, told a press conference here today.

Nagarjuna Oil Corporation is putting up a 6-million-tonne refinery at a cost of Rs 4,750 crore at Cuddalore. The Tatas are taking 26 per cent stake in the company.

IOC has a memorandum of understanding with Nagarjuna. "The `intent' is now being converted into an agreement," Dr Kannan said.

Enough demand

Answering a question, he said that there was enough demand for IOC to take products from Nagarjuna Oil even after picking up the production of IOC's subsidiary, Chennai Petroleum Corporation Ltd.

Dr Kannan said that the IOC board had okayed a Rs 2,370-crore budget for the marketing division of IOC, of which Rs 1,100 crore would go only towards putting up more retail outlets and doing up existing outlets.

Dr Kannan said that IOC recently tied-up with the certifying agency BVQ to certify its retail outlets for quality. The company has also tied-up with Shell Global Sampling (SGS) for `third party sampling' of products from its sales points. These tie-ups are aimed at assuring the customers of the quality of the products.

More Stories on : Alliances & Joint Ventures | Petroleum

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
L&T wins Rs 750-cr NHAI BOT project

ONGC board meet on June 26
NPCIL plant to go commercial in July
On restructuring pay with a skew towards ESOPs
Nicholas Piramal set to buy Pfizer UK facility
Tata Chem eyes local acquisition
Minar International to set up processing plant in TN
Khanna Paper plans Rs 270-cr expansion
SAIL to set up greenfield facility for long products
Mold-Tek plans tech campus near Hyderabad
Ashok Leyland in talks with global player for LCV biz
IOC to formalise tie-up with Nagarjuna Oil
Schwing Stetter ties up with Bharat Shell
Adlabs enters Hollywood
UB may fast forward its investment plans
Pfizer plans launch of blockbuster drugs in India

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2006, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line