The Hindu Business Line : Dodsal bags order for petro products supply in Afghanistan

INTERNATIONAL Petroleum and Trading FZCO, IPT, a subsidiary of the Dodsal Group, has signed a landmark private sector agreement for a period of 49 years, giving IPT the rights for import, storage, supply and distribution and sale of petroleum products within Afghanistan.

Mr Rajen Kilachand, Chairman of the Dubai-headquartered Dodsal Group, told Business Line that he had signed the agreement in Afghanistan with Mr Sayed Mustafa Kazemi, Minister of Commerce and Chairman of High Commission on Investment, Afghanistan.

As part of this arrangement, IPT will create modern petroleum infrastructure involving more than 700 retail outlets, a dozen terminals and distribution and supply networks with investment of over $ 230 million over the next 10 years in strategic locations in Afghanistan. Of this, around $65 million will be invested in the next 18 to 24 months.

Mr Kilachand said that Dodsal Group was planning to invest around $20 million in its restaurant and quick service business in India over the next 10 to 15 months, as it had secured the franchise for Pizza Hut and KFC outlets in the States of Andhra Pradesh, Gujarat and Karnataka.

Its engineering and construction division would also see the group investing $20 million in projects in West Asia and India among other locations, he said. "In all, the group would be investing over $100 million within the next 15 months," he said.

Referring to the major contract secured in Afghanistan, Mr Kilachand said that the retail outlets in keeping with international norms would also have repair and maintenance facilities for vehicles as well as mini convenience stores stocking pharmaceuticals and basic household items. The petrol, lubricants and other products would be sourced primarily from countries in regions close to Afghanistan, he said.

Mr Kazemi said the agreement would fill the vacuum for high quality petroleum products supply to Afghanistan, which has suffered from import of sub-standard and adulterated products so far. Dodsal has secured some major contracts in the UAE and other Gulf States, including pipeline construction, projects for power stations and de-salination plants and the oil and gas sector, highways and other building construction projects.

Mr Kilachand said that the group had registered a 10 per cent growth in turnover last year and expected a dramatic increase by 2006 from $400 million turnover to around $ 800-900 million.

The Dodsal Group is a multinational conglomerate having businesses in engineering and construction, infrastructure development, quick service restaurants and trading.

The engineering & construction business of the Group is based in Dubai, and for over 40 years has been active in 22 countries.

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