BP sells partial stake in Castrol India
BP announced that its wholly-owned subsidiary, Castrol Limited, has been successful in selling part of its shareholding in Castrol India. Castrol Limited sold approximately 11.5%, from the 71% stake, it held in Castrol India to a range of domestic and international investors, the company announced on May 19. Castrol India is listed on the Mumbai Stock Exchange (BSE: CSTRL IB EQUITY) and the National Stock Exchange (NSE: CSTRL IS EQUITY). A variety of investors own the remaining 29% stake in the company.
“BP remains committed to India and we wish to continue to grow our businesses here, progressing our upstream natural gas developments as well as our downstream opportunities, including lubricants,” said BP Group Chief Executive Bob Dudley.
BP, through Castrol Limited, intends to continue as the majority shareholder of Castrol India. There will be no impact from this financial transaction on staff or customers of Castrol India or on its existing contracts, the company said.
“India is a key market for Castrol with tremendous growth potential and is a major element of our global lubricants business. We will continue to have strategic control of Castrol India and this decision is independent of our upstream investments which we continue to progress. We are investing in India and plan to continue to do so,” said BP’s Head of Country, India, Sashi Mukundan.
Omer Dormen, managing director, Castrol India Ltd., said: “During 2015 Castrol India Ltd delivered a record performance with post-tax profit of around INR 615 crores (USD 95 million), 30% up on the previous year. This strong performance has continued in the first quarter of 2016 with post-tax profit of INR 172 crores (USD 26.5 million) for the quarter. We are in a solid position today and will continue to benefit from our strong brands, enduring relationships and the commitment of our staff.”
Castrol India Limited is a public limited company with its corporate office in Mumbai and regional offices at New Delhi, Kolkata, Mumbai and Chennai. The company manufactures and markets automotive, industrial and marine lubricants distributed through 370+ distributors from more than 80,000 retail outlets. Castrol India Ltd. has three manufacturing plants located in Silvassa, Patalganga and Paharpur.