IOC, Total form joint venture to produce bitumen derivatives
New Delhi: French energy giant Total SA and the country's top oil firm Indian Oil Corp (IOC) on Monday announced a 50:50 joint venture to manufacture and market high-quality bitumen derivatives and specialty products for the growing road-building industry in India.
"The new JV will combine the R&D and marketing strengths of both IOC and Total to manufacture and market innovative bitumen formulations and superior quality products such as polymer-modified bitumen, crumb rubber modified bitumen, bitumen emulsions and other specialty products," the two firms said in a joint statement.
The joint venture company will set up manufacturing units across the country with cost-effective logistics solutions, keeping innovation, safety, and sustainability at the helm of its operations.
Total is the leading bitumen manufacturer and supplier in Europe, while IOC is the largest player in the Indian bitumen market. The JV will also explore possibilities to cater to other South Asian markets, the statement said.
The two companies already have an established business relationship in India, notably in the LPG and fuel additives businesses. "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," said Patrick Pouyanne, chairman and CEO of Total.
"Today, Total is further cementing its longstanding business cooperation with IOC 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," he added.
IOC Chairman Shrikant Madhav Vaidya said, "The IndianOil-Total joint venture company would combine IOC's credentials as India's flagship national oil company and the Total's strength as an international energy major."
It would cater to B2B customers involved in road infrastructure development, both in the government and private sectors.