HPCL [Hindustan Petroleum]& BPCL [Bharat Petroleum] uniting to create oil colossus
Bharat Petroleum
bharatpetroleum.com
Hindustan Petroleum
hindpetro.com
Current Stock price as of April.08,1999
1)Bharat Petroleum
BHARAT PETRO (Last traded on BSE: 08/04/99, % change over previous close:2.51%)
Exg. Code Open High Low Close Vol. Value(Rs)
B 547 180.0 187.9 180.0 184.0 275,653 50,885,124.0
N 49 181.0 189.0 181.0 186.5 56,710 10,489,866.0
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Cuckoo Paul
Mumbai 8 April
HINDUSTAN Petroleum has chalked out a radical strategy for the future under which sees it united with archrival Bharat Petroleum under a common holding company. The idea is for the companies to retain independent entities and brands in the market place, along the lines of global tie-ups like Exxon-Mobil and BP-Amoco, HPCL chairman and managing director H L Zutshi told The Economic Times.
HPCL has formed a team to conduct negotiations with BPCL to firm up details of the tie-up. Mr Zutshi said the company is now focusing on gaining critical mass. ''Otherwise, Hindustan Petroleum could be completely marginalised after the deregulation of the oil industry (in 2002) with its current 20 per cent market share,'' he said.
After a tie-up with BPCL, a domestic partner, HPCL is also looking at an alliance with a multinational oil company. It is felt that such an alliance will develop the complete value chain: supply, refining, distribution and marketing of oil products, creating a world class company.
It may be recalled that in a meeting with the ministry of petroleum and natural gas, Shell-Amoco had proposed a tie-up with an Indian oil major two years ago. HPCL has now volunteered to be that partner, and hopes to rope in BPCL to split 50 per cent of the equity equally. Shell-Amoco will hold the balance 50 per cent. According to Mr Zutshi, the proposed synergy between giants like Indian Oil (IOC) and the Oil and Natural Gas Corporation (ONGC) and the entry of private sector players like Reliance with huge refining capacities has altered the face of the Indian oil industry. An axis of HPCL with BPCL, which together control 40 per cent of India's oil market makes sense, he added........
economictimes.com |
