The Hindu Business Line : HPCL eyes retail business abroad

HPCL plans to invest Rs 400 crore on extending its Mumbai-Pune product pipeline up to Solapur and Miraj apart from spending Rs 1,027 crore on upgrading terminals and tanks.

Mumbai , Sept. 25

HPCL is "aggressively" scouting for opportunities for entering oil retail markets abroad. The company plans to focus on the Bangladesh markets in addition to awaiting the verdict on its bid to acquire 100 retail outlets in Sri Lanka, the results of which are expected by January 2004.

Mr Mahesh Lal, Chairman and Managing Director, told newspersons at a post-AGM press meet that the postponing of the disinvestment process may enable the company to focus aggressively on opportunities abroad.

"The Bangladesh Government is looking at opening oil retail markets. And we would like to be there as HPCL is already present in the country's lubricants market."

Mr Lal also said that the company did not feel vulnerable to competition although some of the private sector competitors have accessed detailed information on HPCL's operations in the course of due diligence.

The due diligence process was stopped mid-way after Supreme Court ordered the Government to seek Parliamentary review for selling 26 per cent stake in the company.

For the current year, HPCL has planned investments of around Rs 2,787 crore in upgradation of Trombay and Visakh refineries.

Mr Lal said that the company is negotiating a deal of assurance for tax benefits with the Punjab State Government for its planned Guru Gobindsingh refinery at Bhatinda.

HPCL plans to invest Rs 400 crore on extending its Mumbai-Pune product pipeline up to Solapur and Miraj apart from spending Rs 1,027 crore on upgrading terminals and tanks.

It plans to add more than 500 new retail outlets to its existing network of more than 4,000 during the current fiscal.

Mr Lal also said that the company would appoint consultants for forming a risk management policy for crude imports. HPCL has seen considerable rise in gross refinery margins after it began crude imports on its own.

It has set aside Rs 500 crore as "line of entry" for investing in upstream plans.

"The amount could go up to Rs 1,000-1,500 crore. We are looking for a big-size entry and are not interested in small blocks which do not produce a substantial amount of oil and gas."

May consider selling MRPL stake: Mr Lal also said that the company would "take a call" on whether it wants to sell its 17 per cent stake in MRPL.

"We are not controlling the company's management and our interest is restricted to procuring products for the South Indian market. But we are happy that MRPL's share value has appreciated since last year. And we will need to take a call on whether we want to take the money for ploughing it back into HPCL."

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