The Hindu Business Line : Gulf Oil hints at hiving off units

Hyderabad, Oct. 1 Gulf Oil Corporation, which has interests in lubricants, explosives, mining and speciality chemicals, has hinted at hiving off its divisions when they attain critical mass. It, however, has not given any timeframe for the hive-off.

The board will take a call on the issue whenever a division reaches the critical mass, Mr Subhas Pramanik, Managing Director, told a press conference after the 46th AGM held here on Friday.

The company has initiated a process giving autonomous management structures for the divisions. This might ultimately lead to the hiving-off.

The company registered a total revenue of Rs 669 crore in 2006-07 as against Rs 507.25 crore in 2005-06. While lubricants contributed 59 per cent, explosives chipped in 25 per cent, speciality chemicals 6 per cent and mining and infrastructure 10 per cent.

The company, in association with AASIA Properties of Singapore and Ashok Leyland properties, would develop a five-million sq ft IT, ITeS Park near Bangalore. The Rs 1,000-crore park would be ready in two years.

It would also develop a Knowledge Park in Hyderabad with an estimated project cost of Rs 800 crore. It would have facilities for research and development in chemistry, defence, nano technologies and robotics.

Pharma plans

The Speciality Chemicals division, which registered sales to the tune of Rs 39 crore in API (Active Pharmaceutical Ingredients), expects Rs 100 crore this year.

The API product range includes anti-histamines, cardiovascular and anti-depressants.

The company has also set its eyes on the formulations business.

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