News Release Details
Shell for complete control over Bharat Shell Ltd
New Delhi 04-Oct-2007
Global oil major Royal Dutch Shell will buy Bharat Petroleum Corp. Ltd's (BPCL) 49 per cent stake in lubricant marketing firm Bharat Shell Ltd (BSL) for Rs 145.8crores. BPCL plans to exit the joint venture company, floated in 1993 to market Shell branded lubricants in India, as it has developed a competing product. Official sources said the petroleum ministry has moved a Cabinet note for sale of BPCL's 49 per cent stake in Bharat Shell Ltd to Shell. Shell holds 51 per cent stake in Bharat Shell Ltd . Besides paying BPCL Rs ' 145:8 crore in cash Shell will also 'takeover the state-run firm's 49 per cent of Bharat Shell Ltd 's debt amounting to Rs 31.2 cores as on March 31,2006. Bharat Shell Ltd incurred losses till financial year 2001-02 but after hiving off its loss-making LPG business, the company showed signs of turnaround and posted a net profit of Rs 12.12 cores in 2006-07. Sources said that Bharat Shell Ltd was formed to strengthen BPCL's position in the lubricant market by availing the opportunity for blending and marketing high performance speciality lubricants. BPCL did not have its own production of base oil at that time. Both BPCL and Shell recognised the need for building their own brands independently in India and the state-run firm decided to exit Bharat Shell Ltd .
New Delhi 04-Oct-2007
Global oil major Royal Dutch Shell will buy Bharat Petroleum Corp. Ltd's (BPCL) 49 per cent stake in lubricant marketing firm Bharat Shell Ltd (BSL) for Rs 145.8crores. BPCL plans to exit the joint venture company, floated in 1993 to market Shell branded lubricants in India, as it has developed a competing product. Official sources said the petroleum ministry has moved a Cabinet note for sale of BPCL's 49 per cent stake in Bharat Shell Ltd to Shell. Shell holds 51 per cent stake in Bharat Shell Ltd . Besides paying BPCL Rs ' 145:8 crore in cash Shell will also 'takeover the state-run firm's 49 per cent of Bharat Shell Ltd 's debt amounting to Rs 31.2 cores as on March 31,2006. Bharat Shell Ltd incurred losses till financial year 2001-02 but after hiving off its loss-making LPG business, the company showed signs of turnaround and posted a net profit of Rs 12.12 cores in 2006-07. Sources said that Bharat Shell Ltd was formed to strengthen BPCL's position in the lubricant market by availing the opportunity for blending and marketing high performance speciality lubricants. BPCL did not have its own production of base oil at that time. Both BPCL and Shell recognised the need for building their own brands independently in India and the state-run firm decided to exit Bharat Shell Ltd .