Mumbai: By the orders of the high courts of Bombay and Andhra Pradesh, Gulf Oil India Ltd merged with IDL Industries Ltd with effect from 20 August 2002 to form Gulf Oil Corporation Ltd, a Rs 450-crore turnover company. The merged entity will be a well-diversified company with business interests in infrastructure, mining, chemicals and lubes.

This merger will result in a better synergy between the two companies for product development and research, purchasing, marketing and other back-office functions for cost reduction and optimum use of resources.

The swap ratio for the merger is 2:1 two shares of Gulf Oil India Ltd for one share of IDL Industries Ltd. The promoter holding in the merged company will increase to 61.74 per cent, with non-resident Indians and overseas corporate bodies holding 7.18 per cent; mutual funds 3.53 per cent, banks and foreign financial investors 6.45 per cent. The balance 21.11 per cent will be with the Indian public.

IDL, a 40-year-old company, is into manufacturing industrial explosives, detonators and other initiating devices. Its factory in Hyderabad is the largest detonator and initiating devices manufacturing facility in the world. It has six other factories and six satellite units for manufacturing of explosives.

Gulf Oil India Ltd was formed in 1993 and its products are marketed under the global brand name Gulf, which has been around the world for the past 101 years. Gulf Oil manufactures at its automated plant at Silvassa. It also markets automotive and industrial lubricants and greases, coolants and allied products in the field of lubricants.

The merged company has drawn up a long-term business plan for future growth, utilising assets valued at round Rs 500 crore and a manpower of around 2,600. The organisation will have a strong distribution base with 27 marketing offices and 250 distributors spread across the country. Additionally, the merged entity will have an export base in over 20 countries with IDL Industries already enjoying an export house status.