The Hindu Business Line : Apar in tech pact with Eni of Italy to produce AGIP brand of lubricants

In manufacturing pact: Dr Giovanni Papandrea, President, CHEMATEX S.p.A Italy (left), and Mr Kushal Desai, Managing Director, Apar Industries, at a press conference in Mumbai on Wednesday.

Our Bureau

Mumbai, Dec 5

AGIP brand of lubricants, used for luxury vehicles in Europe, would be available in India by the first quarter of 2008.

On Wednesday, Apar Industries announced its technology and licence agreement with Eni of Italy for producing them locally.

Eni is one of the biggest integrated energy companies in the world.

JV with Chematek

Apar, which has a major presence in specialty industrial oils, will produce the lubricants in joint venture with Chematek of Itlay. The Milan-based company has major interest in fine chemicals. Apar-Chematek Lubricants Ltd will be marketing and distributing AGIP.

Mr Kushal Desai, Managing Director of Apar, told presspersons the investment in the joint venture is Rs 10 crore and payment to Eni would be royalty based. The company has spent about Rs 15 crore in upgrading its infrastructure to match Eni standards, he said.

In talks with OEMs

He said that the company is making headway in negotiating with OEMs for selling lubricants. About 50 distributors have already been selected and another 150 distributors will soon join hands with the company.

Mr Desai said that the company expects to have revenue of Rs 50 crore from AGIP brand in the coming calendar year. It would be spending Rs 3 crore for brand creation by working with mechanics in local garages, he said.

More Stories on : Alliances & Joint Ventures | Petroleum

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