Hinduja group interested in picking up majority stake Kakinada refinery

31-Oct-07

The Hinduja group plans to pick up a majority stake in the Kakinada refinery, being put up for sale by the public sector oil major ONGC and its subsidiary, Mangalore Refineries and Petrochemicals Ltd. Gulf Oil Ltd, part of the Hinduja group, will be the company that would possibly buy shares in the company. The Hinduja group has a long-term (30 year) agreement for supply of heavy crudes, that could aid in doubling refinery capacity from the proposed 7.5 mln tpa. This will be the second attempt by the group to enter the oil industry in India. Its first attempt was a tie up with Indian Oil Corporation for a 6 mln ton refinery in Orissa- that dates back to a decade ago.