Mumbai, Jan 11: The Aditya Birla group, a partner in Mangalore Refinery and Petrochemicals Ltd (MRPL), has urged the Centre for the marketing rights for its petroleum products. It has written to the ministry of petroleum seeking permission to market its products in lieu of the fact that the refining sector is not very profitable.According to an Aditya Birla group spokesperson, all its products from the nine million tonne refinery are marketed by partner company, Hindustan Petroleum Corporation Ltd (HPCL) through its chain of 4,000 retail outlets and hence the venture is not profitable for the group. The spokesperson added that the company was buying crude at a very high price and hence was keen to begin marketing its products to earn some profit.
Aditya Birla group officials added that the company would wait for a reply from the Centre for marketing rights. When asked if the company would back out from the joint venture, the company spokesperson commented, "We will have to cross the bridge one day." The company, however, feels that it is too early to take a call on withdrawal from MRPL.
Meanwhile, the tussle between the Birla group and HPCL seems to have put off Kuwait Petroleum Corporation (KPC), who wants to pick up a stake in MRPL.
The group spokesperson, however, maintained that talks with the company are on and a decision will be arrived at in a couple of months.
The Aditya Birla group and HPCL each hold a 37 per cent stake in the company. The remaining 26 per cent will be offered to a third party. The Aditya Birla group has decided to directly market its products in line with the recommendations of Accenture.
It is also planning to set up 1,700 petrol pumps all over the country.
Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.