The 10.5 billion-euro Italian oil major ENI is entering the Indian lubricants market through a technology transfer agreement with a Mumbai-based firm to manufacture and sell various products.
ENI will supply know-how and licence to India's Apar Industries to manufacture and sale lubricating oils, greases and special products for industrial, automotative and marine applications, oil industry sources said.
"We can only confirm we have filed the application with Foreign Investment Promotion Board for requisite clearances and cannot say more because of confidentiality reasons," said Diljeet Titus, senior partner of law firm Titus and Co.
The Delhi-based law firm represents Apar Industries and filed the application on its behalf. The sources said the agreement will also allow Apar to produce and market high-end lubricant brands like ENI and Agip, besides Formula Moto and SINT 2000.
ENI had earlier tied up with state-run Oil and Natural Gas Corporation to participate in deep-water
As part of the technology transfer and licencing agreement, which was submitted to Foreign Investment Promotion Board for approval recently, Apar Industries will produce 1,500 tonnes of lubricant oils, grease and other speciality products during 2007-08.
The company plans to increase the production of high-end lubricants to up to 6,000 tonnes by 2011-12, sources said. India's lubricants market, which is worth Rs 7,000 crore according to industry estimates, is expected to go up to Rs 35,000 crore in the next 10 years.