Indian Oil plans organisational restructuring
By Our Corporate Bureau | 06 Jul 2005
Kolkata: Indianoil is planning to go in for a complete organisational revamp to consolidate its business activities. The company is exiting from four out of nine joint ventures with the aim to present a lean, thin and stronger balance sheet in 2005-06.
IOC
will merge four subsidiaries — IBP (100 per cent),
Indian Oil Blending (100 per cent), Bongaigaon Refinery
and Petrochemicals (74.46 per cent) and Chennai Petroleum
Corporation (51.88) — with itself. While the merger
of IBP has moved to an advanced stage, the Cabinet committee
has approved the proposal on IOBL and IOC board has
decided in favour of BORL merger. For merger of CPCL,
the company is yet to get consent from the National
Iranian Oil Company.
IOC entered into as many as nine JVs mostly in the 1990s. These are, Avi-Oil India Ltd, Indian Oiltanking Ltd (IOTL), Lubrizol India Private Ltd (LIPL), IndianOil Petronas Private Ltd (IPPL), Petronet LNG Ltd, Petronet India Ltd (PIL), Petronet VK Ltd (PVKL), IndianOil Panipat Power Consortium Ltd (IPCPL) and Petronet CI Ltd (PCIL).
Of these, Avi-Oil, IOTL, LIPL, IPPL and PLL will be retained. The last one, Petronet LNG, is the largest of the lot with a turnover of Rs 1,945 crore and is developing LNG import and regassification facilities at Dahej and Kochi. The 12.5 per cent joint venture with BPCL, GAIL, ONGC and others is set to gain with the country's increasing thrust on using imported LNG.
The subsidiaries and joint ventures reflected total revenue of Rs 23,586 crore and total assets of Rs 9,227 crore in 2003-04. IOC's share in assets of JVs was quoted as Rs 203 crore in 2003-04.