Haldia Petrochemicals Ltd.’s application to enter the fuel retailing business has been approved by the Indian government, making it the latest the company to join a highly competitive market dominated by public sector undertakings (PSUs). Haldia Petrochemicals, which is headquartered in Kolkata, West Bengal, initially plans to open 50 retail outlets in the state of Bengal.
Haldia Petrochemicals is a joint venture between the government of West Bengal, The Chatterjee Group, the TATA Group and Indian Oil Corporation (IOC). Haldia’s investment in the petrochemicals business fulfills the investment criteria set by the government to participate in the fuel retail market, which is INR2,000 crore (USD302 million).
Haldia Petrochemicals’ retail license will help boost IOC’s market share, as IOC owns a 9% stake in Haldia Petrochemicals.
IOC is expected to supply Haldia Petrochemicals’ fuel retail network, since it has a refinery next to Haldia’s naphtha-based petrochemical plant located 125 kms from Kolkata.