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Our Bureau

New Delhi, Nov. 30

Bharat Petroleum Corporation Ltd (BPCL) is all set to exit Bharat Shell Ltd (BSL), with the Union Cabinet today approving the sale of 49 per cent equity of BPCL in BSL to Shell or its affiliate for Rs 152.40 crore.

BPCL is exiting the joint venture company BSL to market Shell branded lubricants in India, as it has developed a competing product, the Minister for Information and Broadcasting, Mr P.R. Dasmunsi, said.

“The proposed sale will enable BPCL to withdraw from a joint venture company which has competing business interests – the production and sale of branded lubricants in India. This would enable BPCL to concentrate on building and promoting of its own brand of lubricants resulting in an improved brand image, higher growth, efficiency and profits,” he said.

BSL was formed to strengthen BPCL’s position in the lubricant market by availing itself of the opportunity for blending and marketing high performance speciality lubricants. BPCL did not have its own production of base oil at that time, he added.

Shell currently holds 51 per cent stake in BSL. The joint venture was floated in 1993.

More Stories on : Alliances & Joint Ventures | Petroleum | Bharat Petroleum Corporation Ltd

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