We have Rs 2 lakh crore CAPEX plan: Mr. AK Sharma, Director (Finance), IndianOil
New Delhi   17-Mar-2017

AK Sharma, Director (Finance), IndianOil talks to ET Now about IOC's latest stake sale in Lubrizol and their ambitious capital expenditure plan over the next 5-7 years.

Can you explain the entire Lubrizol transaction?

We got the cabinet approval for dilution of our stake by 24 per cent the day before. This is a joint venture between Indian Oil Corporation and Lubrizol Corporation of USA, 50-50 joint venture and we had through this, the access to the lubricant additive technology of Lubrizol. The agreement has expired in 2014 and was due for the renewal.

So we negotiated with them. We wanted the latest world class lubricant additive technologies to be made available which are not available in India and Asia, at the same time we also thought of going for a strategic alliance on this agreement and monetise a part of our investment which was made in the year 2000 at a good price.

So both the purposes were achieved. We were able to monetise a part of this investment. At the same time, we are able to keep the joint venture agreement for a long term with the latest technologies being made available.

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