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Rediff.com  » Business » IOC to invest $100 million in Sri Lanka

IOC to invest $100 million in Sri Lanka

February 20, 2004 15:29 IST

Public sector oil giant Indian Oil Corporation is investing $100 million in its Sri Lankan subsidiary Lanka IOC Ltd during 2004-05 as part of its retail foray in the island country.

"We are investing $100 million in Lanka IOC Ltd during 2004-05," IOC Director Marketing N G Kannan told reporters in Bangalore at the 13th International Aviation Conference, being attended by over 90 delegates from 35 countries.

"We have taken over a large bulk storage terminal in Trincomalee, as well as over 150 petrol stations. In the next two years, we hope to cover 30 per cent of the Sri Lankan market," he said.

Kannan said IOC's Mauritius subsidiary, IOC Mauritius Ltd is investing over $18 million for setting up aviation refuelling facilities which will begin operation from March.

"IOC will be supplying 20 per cent of Air Mauritius and other providers include Shell, Exxon and Caltex," he said, adding that IOC was setting up a fuel certifying laboratory in Mauritius.

Asserting that IOC is aiming to replace the British and American oil majors in developing countries, Kannan said, Indian Oil was venturing into Afghanistan, Kazakhstan, Madagascar, besides its established presence in neighbouring countries like Nepal and Bhutan.

Lanka IOC, Kannan said, was planning to add 120 more retail outlets in Sri Lanka, apart from the existing 150 outlets.

He said IOC's aviation turbine fuel (ATF) offtake registered a 9.7 per cent growth during the current fiscal, up from about 2.5 per cent to 3 per cent during last fiscal.

"The three fold increase is due to the growth in air traffic out of India with scheduled airlines like Sri Lanka, Maldives, Thai airways increasing their services from out of various cities," Kannan said.

He said IOC was setting up an additional six ATF fuel stations and taking the total tally to over 100 by next fiscal.

Kannan said IOC has entered MoUs with Hindustan Sheet Glass and Hindustan Natural Glass for supplying Liquefied Natural Gas (LNG) from Dahej and added negotiations were on with Chambal Fertilisers to supply LNG.

He said IOC was looking at CNG fuel as a potential area to grow, but the roadmap would be for 18 months and above.

Kannan said the company was increasing its auto LPG business in a significant way in the country.

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