MUMBAI, June 29: Lubrizol Corporation of the US is believed to be close to acquiring British Petroleum's additives division worldwide. The company, Adibis, reported a turnover of around $200 million in 1997. The acquisition will fortify Lubrizol's business in Europe though its impact is not likely to be felt in India. British Petroleum has a tieup with the Tatas in the lubes segment. This arrangement will continue as Lubrizol has only acquired BP's additives division. "At best, there could be a change in focus in Lubrizol's own additives business here," sources said.The acquisition will also not alter the company's future course of action in India. It is presently in the process of shifting partners from the government of India to the Indian Oil Corporation. Consequent to this, IOC and Lubrizol will hold equity equally in the company. Lubrizol India, a 60:40 joint venture between the centre and Lubrizol Corporation, was incorporated in 1966. The company's manufacturing unit is situated at Turbhe,Thane-Belapur industrial complex in Navi Mumbai. Lubrizol India develops, manufactures and markets additive systems for automotive and industrial lubricants and also develops other speciality chemicals catering to the needs of the petroleum industry.
A second unit for manufacture of extreme pressure additives has been commissioned at Taloja in Raigad district. According to the recent report of the ministry of petroleum and natural gas, the company is negotiating for a new technology transfer agreement with the collaborators. This will cover technologies for manufacture of additives to meet the emerging requirements.
Sources said that though the tie-up with IOC was inevitable, it would not imply that Lubrizol will part with the secrets of preparing its formulations. "This is something that the parent company is categoric about and though an equal partner, there is no way IOC can demand access to these preparations," they added.
There has also been some confusion on the status of Lubrizol India after thegovernment's announcement in the budget on paring its holding in non-strategic PSUs. The company does fall in this category but official sources in New Delhi maintained that in this case, it had already been agreed upon that IOC would be the new partner.
And even if the government decided to reduce its holding to 26 per cent, it could still offer 34 per cent to IOC. The Lubrizol saga began nearly two years ago when the petroleum ministry sought offers from interested PSUs to buy the government's stake in the joint venture. The list included IBP, Cochin Refineries and the Oil and Natural Gas Corporation. Feelers were also sent to the Indian Petrochemicals Corporation. ONGC was finally shortlisted but withdrew after the original deadline of December 1997 to take a decision elapsed.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
