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Gulf Oil Corporation enters into a strategic joint venture
with Oil Bangladesh Limited
July 3, 2003
Highlights
- Forms a new company `Gulf Oil Bangladesh Ltd.' to start
Lube blending
operations in Bangladesh. Gulf Oil Corporation will hold
51% stake and Oil
Bangladesh will hold 49% stake in the new company.
- Targets 7.1 % market share in the first year of operations.
- Emerges as a first Indian Lubricant company to invest
in the international
market.
Mumbai, July 3, 2003: Gulf Oil Corporation Ltd. (GOCL),
one of the leading companies in the business of lubricants,
has entered into a joint venture with Oil Bangladesh Ltd.
(OBL). According to an agreement signed in Dhaka, today, a
lube blending operation will be started in Bangladesh, which
will function, under a newly formed company `Gulf Oil Bangladesh
Ltd.' (GOBL) with its head office in Dhaka. Gulf Oil Corporation
will hold 51% stake while Oil Bangladesh will hold 49% stake
in the new company. Mr. A K M Mosharraf Hossain, Minister
of Energy and Mineral Resources, Bangladesh, was the Chief
Guest at the signing ceremony. With this joint venture, GOCL
will become the first Indian Lubricant Company to invest in
the international market.
Subsequent to the opening of Lubricants market in Bangladesh
in 1997, Gulf Oil Corporation appointed Oil Bangladesh as
their sole distributor in 1999. Since then their sales have
peaked at 200 kl per month, which represents a market share
of 3.5%. In order to take advantage of duty differentials
between raw materials and finished products, GOCL has decided
to start a lube blending operation in Bangladesh, by forming
this joint venture company. The total size of the lubricants
market in Bangladesh is estimated at 70000 MT per annum, with
an annual growth rate of 6-8%. In the first year of operations
Gulf Oil Bangladesh is targeting a market share of 7.1%, which
will translate into a turnover of US$ 5.4 million.
Gulf Oil Bangladesh Ltd will blend and exclusively market
GULF branded lubricants in the country. The company will import
about 25% of the material from India & Italy, mainly representing
premium quality base oils other raw materials and also finished
products, which cannot be blended in Bangladesh.
Mr. V Ramesh Rao, Executive Director, Gulf Oil Corporation
said, "Having established a strong presence in India,
we are poised for expanding our operations overseas. We are
happy to cement our fruitful association with Oil Bangladesh
Ltd. and start joint venture company in Bangladesh. It will
be our endeavour to explore expansion opportunities in the
international market and ensure improved shareholder value."
About Gulf Oil Corporation Limited
Gulf Oil Corporation Ltd is the second largest private sector
company in the Indian Lubricants market. It offers all kinds
of lubricants, greases, brake fluids, oil filters and coolants
required by the Indian automobile market. In addition to the
above, it also offers various kinds of specialty industrial
lubricants. The other divisions of GULF OIL Corporation have
presence in the business of mining products & infrastructure
contracts, specialty chemicals, building products and floriculture.
An ISO 9002 company, it is planning to achieve ISO 14000 certification
soon. During the nine months ended December 2002, GULF OIL
recorded a turnover of Rs 273.35 crores and a net profit of
Rs. 9.73 crones. Gulf Oil Corporation is a part of Gulf Oil
International, a global organization with operations in over
83 countries. The global network is managed through strategically
placed business hubs in South and Central America, Europe,
Middle East and Asia.
About Oil Bangladesh Limited
Oil Bangladesh Ltd is a company floated by the Rang Group,
a leading commercial organization in Bangladesh. The Rang
Group commenced its activities in 1979 and within 2 decades
the organization has grown into one of the most premier groups
in Bangladesh. The various businesses of the Group include
Real Estate, Distribution & Marketing of Commercial Vehicles
of Mitsubishi, Eicher & Hindustan Motors, Broadcasting,
Media & Publishing, Information Technology, Insurance,
Agro Food Services and Deep fishing
For further information please visit contact:
Jimmy Bhada / Jiju Jacob
GULF OIL Corporation Ltd.
Phone: +91 (22) 28248240, 56989900
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