Indian Oil Corporation Limited is planning to invest about R1000-1500 Cr in Chennai based Chennai Petroleum Corporation Ltd, which will be utilise by south Indian refiner to expand its operations.
Currently, Indian Oil holds 51.89% in Chennai Petroleum Corporation and the other promoter Iran's Naftiran Inter Trade Company Ltd, holds 15.40% in the company. IOC will make investment by buying fresh shares of Chennai Petroleum through a proposed private placement.
Incorporated in 1965, Chennai Petroleum (formerly Madras Refineries Limited) operates as an integrated refinery that produces petroleum products in India. Its principal products include LPG, motor spirit, superior kerosene oil, aviation turbine fuel, high speed diesel, naphtha, bitumen, lube base stocks, paraffin wax, fuel oil, hexane, and petrochemical feed stocks.
Founded in 1959, Indian Oil Corporation is in the business of refining, transporting, and marketing petroleum products in India. It own and operate 10 refineries in India and cross-country network of crude oil, product and gas
pipelines. Its refining capacity as on March 31, 2014 is 65.7 million metric tonnes per annum (MMTPA) with a share ofaround 31% of domestic refining capacity and has 11,000+ km pipeline for crude oil, products and natural gas. IOCL has one of the largest petroleum marketing and distribution networks in Asia with over 41,600 marketing touch points and has a market share of 44% in domestic products marketing.