Financial Daily from THE HINDU group of publications
Friday, Oct 01, 2004

Cross Currency

Group Sites

Industry & Economy - Petroleum

IIM Prof favours 2-company oil sector structure

Our Bureau

New Delhi , Sept. 30

AS part of the proposed restructuring exercise to make public sector oil companies globally competitive, IIM professor N. Venkiteswaran has suggested that two major corporates be formed through mergers and acquisitions.

Prof Venkiteswaran, who teaches at the Indian Institute of Management, Ahmedabad, was invited by the Petroleum Ministry to present his viewpoint.

He argued that the present crowd of ten listed public sector oil companies is far too many since in countries such as China there are only three companies.

He has suggested two major conglomerates. Of this, one would be made up of Oil and Natural Gas Corporation, Bharat Petroleum Corporation Ltd, Hindustan Petroleum Corporation Ltd.

The other would be made up of Indian Oil Corporation, Oil India Ltd and GAIL (India) Ltd.

He pointed out that such an industry structure would promote healthy competition and at the same time ensure that companies do not work at cross-purposes.

The two-company structure would create entities that would individually have a market capitalisation of around $50 billion, one-sixth of that of oil major Exxon Mobil.

More Stories on : Petroleum | Mergers & Acquisitions

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

Stories in this Section
`Foreign experts' controversy — Plan panel dismantles consultative groups

GDP grows 7.4% in April-June
External debt at $112.6 b
Fiscal deficit for Apr-Aug higher
External liabilities down by $12 billion
NRI Institute to raise grievances of Indians in Gulf
Medical costs: Not a `healthy' picture for senior citizens
Greenpeace cries foul over Bayer's GMO trials
New research facility for brain imaging at Gurgaon
DDA signs MoU with infrastructure finance corpn
Govt decides not to hike petrol, diesel prices
IIM Prof favours 2-company oil sector structure
Simplex bags contract from Nagarjuna Power
Service tax waiver on payments in convertible forex may go
Why Thailand scores in small industry sector
TN SSI policy to focus on rehabilitation
Canned Capital
`Team India plays for BCCI, not Govt'
XLRI `Lekh' contest last date tomorrow
Perversions that adults can inflict on the young
UAE likely to raise foreign investment cap
Flextronics among 48 FDI plans cleared
Welfare fund for Kerala construction workers needs fine-tuning: ILO
Kerala: Rural Development Week from Oct 2
Unorganised Sector Workers' Bill being redrafted
India-US info security summit on Oct 12-13
Khadi exhibition from tomorrow
In Hyderabad today
Block rubber shoots up as exports spurt
KTM spotlight on Wayanad, Malabar
Call for proper maintenance of tourist spots
Call to focus on quality to stay competitive

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 2004, 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