Hindustan Petroleum Corporation would invest Rs 1000 crore (Rs 10 billion) for its retail expansion by March 2007. The major part of the fund would be used for automation of 560 retail outlets, said S P Chaudhary, executive director, retail business. For setting up new outlets, the company would spend Rs 200 crore (Rs 2 billion).
"The company is in the process of automating 425 outlets across its network spanning 7,000 fuel stations. HPCL has decided to extend the automation plan to make the system efficient. We should be placing orders for the project in the next 2-3 months," Chaudhary added.
"The agreement finalisation of the Rs 12,000 crore (Rs 120 billion) Bhatinda refinery project is expected to be completed in two months. British Petroleum has shown interest in the downstream project and has conducted a feasibility study. The decision is expected soon," he added.
"HPCL is planning to set up the Rs 16,000 crore (Rs 160 billion), 15 million tonne per annum export-oriented refinery-cum-petrochemical complex in Vizag on its own, as talks with French oil major Total for equity participation have not materialised," said Mahesh B Lal, chairman.
"The company's investment plan would not be affected by the continuing retail losses due to subsidies on sale of petroleum products. HPCL had suffered Rs 1608 crore (Rs 16.08 billion) loss in the first three quarters of this financial year. We are waiting for the fourth quarter result to come," Lal said.
"Fund availability is not a problem. Our debt-equity is extremely low. So we have ample scope for borrowings. Last month, HPCL raised $ 200 million, five-year yen-denominated loan to fund its capital expenditure plans," Lal added.
HPCL is also expanding its Mumbai refinery to 7.9 million tonne and Vizag refinery to 8.5 million tonne and has earmarked Rs 1,200 crore (Rs 12 billion) for expansion of its retail networks.Do you want to discuss stock tips? Do you know a hot one? Join the Stock Market Investments Discussion Group
