French oil and gas giant Total has formed a 50:50 joint venture company with India’s largest petroleum refiner Indian Oil for production of bitumen derivatives.
The joint venture company will produce and market bitumen derivatives and specialty products for the growing road-building industry in India.
Currently, Total is a major bitumen manufacturer and supplier in Europe.
Total and Indian Oil have already an established business relationship in India, mainluy in LPG and fuel additives businesses.
Total chairman and CEO Patrick Pouyanné 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.
“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 JV company will combine the R&D and marketing strengths of both the companies to manufacture and market innovative bitumen formulations.
The combined capabilities will also be utilized for production of products such as polymer-modified bitumen, crumb rubber modified bitumen, bitumen emulsions and other specialty products.
The JV will set up manufacturing units across the country and it will also explore possibilities to cater to other South Asian markets.
IndianOil chairman Shrikant Madhav Vaidya said: “The IndianOil-Total joint venture company would combine IndianOil’s credentials as India’s Flagship National Oil Company and the Total’s strength as an International Energy Major.
“This would cater to B2B customers involved in road infrastructure development, both in the government and private sectors and I am confident that this would start a revolution in road construction activities in the country by providing superior technology products at competitive prices.”