Mumbai-based Indian Oiltanking (IOT), promoted by Oiltanking Gmbh, Germany and Indian Oil Corporation, has picked up 81% stake in Vadodara-based Engineering and Construction company Anwesha Comtech Engineering.
Anwesha Comtech is engaged in engineering and construction of storage tanks and piping work for refineries, oil terminals, fertilizer and chemical industries.The new company will be called IOT Anwesha Engineering & Construction.
According to Jatin Mavani, vice president and company secretary, IOT, the acquisition is to improve its margins by having in-house storage tanks and piping work infrastructure which used to be outsourced before.
IOT has been eyeing inorganic growth in recent times. Earlier it had acquired 54.9% stake in Stewarts & Lloyds of India from Tata Steel and associates.
Next on the company's plans is acquisition of companies in the design engineering space and creation of a separate division to offer Exploration and Production (E&P) services. An IPO is also on the cards by the end of 2008 to raise Rs 500 crores from the capital markets.
The company is also in initial discussions with Mundra Port officials regarding setting up of a new terminal to handle petroleum products. It has three terminals currently; one each at Mumbai, Goa and Chennai. The Mumbai terminal can handle volumes upto 2,35,000 kilo litre.
Initial talks with Mundra Port has seen the company think of setting up a considerably larger terminal. “Investment into the new terminal would depend on the volumes we are likely to handle which is still being worked out,” said Mavani.
The terminal at Mundra Port is expected to handle kerosene, naptha, diesel and possibly crude. The agreement with Mundra could wrap up by mid 2008.
Source: Business Standard