The Hindu Business Line : IBP to expand cryogenics business

Mr Arun Jyoti, Managing Director, IBP Co, with Mr B.B. Vohra, Executive Director (Marketing), at a press conference in Mumbai on Thursday. — Paul Noronha

Mumbai , Feb. 19

IBP Ltd plans to focus on building cryogenic vessels for transporting LNG, imported at Petronet's Dahej terminal, to interior parts of the country.

The company is in talks with US-based Chart Industries for entering an agreement to produce cryogenic vessels for carrying LNG, Mr Arun Jyoti, Managing Director, said here.

Mr Jyoti told presspersons the oil marketing company expected turnover of its cryogenic business to grow "multi-fold" once it began producing these vessels which will have a capacity of 20,000 litres.

" We would only have to update the existing facilities in Nasik where we are making smaller cryogenic containers used by pharmaceutical companies. This would take roughly Rs 5 crore," he told Business Line.

He was speaking at a press conference announcing offer for sale of 57.58 lakh share forming 26 per cent residual stake held by the Union Government in IBP. The offer for sale opens on February 23 and closes on March 1

IBP became part of the Indian Oil Corporation group of companies in 2002 after IOC bought 33.58 per cent held by the Union Government for Rs 1,153.68 crore and later acquired 20 per cent through an open offer.

IBP plans to strengthen its explosives division, which forms a mere 1.20 per cent of IBP's turnover while cryogenics forms 0.20 per cent.

It has begun exporting its industrial explosives to Kenya, Jordan, Malaysia and Ethiopia.

The company will continue building its network of petrol pumps, with more focus on modernisation of existing outlets, said Mr A K Sinha, Director Finance.

IBP is a debt-free company and had repaid its loan liabilities in the financial year 2001-02.

The company has 2,524 retail outlets across the country.

It added 532 new petrol pumps in 2002-03 -- the highest number among Indian oil marketing companies.

It now plans to focus on spreading its presence in the south and west.

It holds 8.12 per cent of the Indian transport fuels market.