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Gulf Oil Corporation Emerges
Gulf Oil India Merges with IDL Industries
August 19, 2002
By the orders of the Honourable High Courts of Bombay and
Andhra Pradesh, Gulf Oil India Ltd. merged with IDL Industries
Ltd., with effect from 1st January 2002, to form Rs.450 crores
turnover Gulf Oil Corporation Limited.
The swap ratio for the merger is 2:1 (exchange of 2 shares
of Gulf Oil India for 1 share of IDL Industries Ltd.). With
this the promoter holding in the merged company will be 61.74%,
NRIs and OCBs holding will be 7.18%; mutual funds 3.53%, banks
and FIIs 6.45%. The balance will be with the Indian public.
One of the main considerations for the merger is that there
will be 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.
IDL is about 40 years old company with the foreign shareholding
of 51%. The Company is manufacturing Industrial Explosives,
Detonators and other Initiating devices. As a matter of fact,
IDL's factory at Hyderabad is the largest detonator and initiating
devices manufacturing facility in the world.
The Company is undertaking large Mining and Road construction
contracts apart from its traditional business of Industrial
Explosives and Detonators over the past 3 years. These new
business areas will help IDL to build a portfolio of activities
as they are allied to its core business areas.
Gulf Oil India Ltd. was formed in 1993 and its products are
marketed under world-renowned brand name "Gulf"
which has been around the world for the past 101 years.
Gulf Oil manufactures Automotive and Industrial Lubricants
and Greases, Coolants and allied products in the field of
Lubricants.
The merged company has already drawn up long-term business
plan for future growth, utilising assets valued at round Rs.
500 crores and manpower of around 2600 employed at 10 manufacturing
units and 27 marketing offices all over India. The organization
with 250 distributors will also have a strong distribution
base spread across the country. Additionally the merged entity
will have an export base in over 20 countries with IDL Industries
already enjoying Export House status.
The combined audited results for the year ending 31st March,
2002 with the merger from 1st January, 2002 alongwith the
Q1 results as on 30th June, 2002 will be announced shortly
after Board approval.
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