Total has entered into an equal partnership with Indian Oil Corporation (IOC) to manufacture and market high-quality bitumen derivatives.
Indian Oil Corporation (IndianOil), India’s largest refiner and marketer of petroleum products, and Total, a multinational energy giant with headquarters in Paris, France, today announced the formation of a 50:50 Joint Venture (JV). The goal of the resulting company will be to manufacture and market high-quality bitumen derivatives and speciality products for the growing road-building industry in India.
IndianOil is the largest player in the Indian bitumen market, while Total is the leading bitumen manufacturer and supplier in Europe. The two companies have already established a business relationship in India, notably in LPG and fuel additives.
The joint venture will also look to branch out to other South Asian markets.
Patrick Pouyanné, Chairman and CEO of Total, said, “India is a strategic country for the future of Total and we are delighted by this partnership, yet another testimony of our commitment to this fast-growing market.”
He further added in a recent press release “Today, Total is further cementing its longstanding business cooperation with IndianOil, into a strong and sustainable new partnership. With this agreement, we are pursuing the growth of businesses with key Indian energy players, adding to our ongoing developments in renewables, gas and power.”
The new joint venture will combine the R&D and marketing strengths of both IndianOil and Total to manufacture and market innovative bitumen formulations and superior quality products such as polymer-modified bitumen, crumb rubber-modified bitumen, bitumen emulsions and other speciality products. The venture will set up manufacturing units across the country with cost-effective logistics solutions, keeping innovation, safety and sustainability at the helm of its operations.
Speaking on the occasion, IndianOil Chairman, Mr SM Vaidya, said, “The JVC will combine IndianOil’s credentials as India’s flagship national oil company and Total’s strength as an international energy major. It would cater to B2B customers involved in road infrastructure development both in the government and private sectors, and I am confident that this would bring a revolution in road construction in the country by providing superior technology products at competitive prices.”
The Government of India has a strong focus on developing the country’s road infrastructure with mega projects like the ‘Bharatmala project’ which envisages development of 34,800 km of roads at an estimated investment of over Rs. 5 lakh crore in the first phase (equivalent to approximately 66 billion USD).
The demand for aggregate material and manufactured material for the highway construction and rehabilitation sector in India is very high, especially for good-quality bitumen derivatives.
The IndianOil and Total JV will offer high-spec products using sustainable technologies.