Shell Overseas Investment BV of the Netherlands will acquire Bharat Petroleum Corp. Ltd.s 49 percent shareholding in theirIndian lubricant marketing joint venture, Bharat Shell Ltd., for an undisclosed amount, Shell announced Feb. 21.
According to the statement,the companies claimed the venture was successful but believed that the time was right for each to focus on their own specific lubricants brands, building them independently in India. The agreement is subject to regulatory and government approvals in India.
This is a great opportunity for enhanced growth in Shells lubricants businesses in this emerging and dynamic market, said Vikram Sing Mehta, chairman of Shell Companies in India. Shell and Pennzoil branded lubricants are both established in the Indian market, and we intend to continue to maintain and invest in both brands in the country.
Bharat Shell, which entered Indias lubricants market in 1994, was a joint venture between the two companies for marketing Shell branded lubricants. According to Bharat Petroleums Web site, the joint venture has an authorized capital of Rs. 2.5 billion (U.S. $56.5 million). During fiscal year 2004-2005, the joint venture made a profit of Rs. 48.5 million (U.S. $1.1 million). Bharat Petroleum is based in Mumbai, India.
Shell-branded automotive lubricants marketed by the venture in India have included Shell Helix for passenger cars, Shell Rimula for heavy vehicles, Shell Advance and Shell 2T for two and three wheeler engines, and specialty lubricants such as Shell Spirax gear oils, Shell Automotive Greases, Shell Coolguard coolant, brake fluid, pump set oil and hydraulic oils.
Since 1997, Bharat Shell had manufactured its lubricants at its blending plant at Taloja, near Mumbai.