The board of directors of Apar Industries Ltd. approved establishment of a wholly owned subsidiary in Saudi Arabia to produce lubricants for equipment and engines, according to a March 29 stock exchange filing.
The company registered the subsidiary’s name, Apar Industries Middle East Ltd., in Saudi Arabia, Apar said in its filing on the BSE India stock exchange.
The cost of the subsidiary – which is technically described as an acquisition of shares – is estimated at 1,875,000 riyal (U.S. $5 million), meaning 1,875 shares of 1,000 riyal each. That will be by way of subscription to the share capital, which is yet to be subscribed. Apar Industries Ltd. will hold 100% of the share capital of the wholly owned subsidiary.
The company said approvals and registrations required in Saudi Arabia are pending.
Mainly known as a major manufacturer of transformer oils, Apar also produces automotive and industrial lubricants in India. The company has a licensing agreement to supply automotive lubricants under the brand of Italian oil company Eni.
For the quarter ended Dec. 31, the third quarter of its fiscal year, Apar reported that sales revenue for its transformer and specialty oils segment was flat year-on-year at Rs 1,244 crores, on volume growth of 8%. Exports contributed 44% of the segment’s revenue. The company’s global transformer oil sales were up by 16% in the quarter.
Apar also has businesses that provide conductors for power transmission lines, cables for a wide variety of industries, and cable and services for telecommunications solutions.