Indian Oil is planning to launch a new fuel and gas retail venture in partnership with Malaysia’s Petronas.
Indian Oil Petronas Pvt Ltd (IPPL), a two-decade-old joint venture in which the two firms hold equal stakes, will now get into retailing of transportation fuels as well as natural gas in India, Indian Oil Chairman S M Vaidya said.
IPPL is currently engaged in the import, storage, and bottling of liquified petroleum gas.
IPPL intends to have a separate brand identity for its fuel retail business, Vaidya said, adding that the new venture could be interpreted as a kind of monetization of Indian Oil’s fuel marketing business.
The new venture wouldn’t eat into Indian Oil’s existing business, Vaidya said. “The entire energy pie is increasing so there is no question of cannibalizing,” he said. “We intend to get the best practices of global companies into India.
But it will not be at the cost of our own market share.”