Mangalore Refinery and Petrochemicals Ltd (MRPL), Oil and Natural Gas Corporation Ltd (ONGC), and ONGC Petro additions Ltd (OpaL) have formed a joint venture (JV) company to integrate the petrochemicals marketing of group companies.
MRPL informed stock exchanges on Monday that it received a communication on April 27 from ONGC (the holding company of MRPL) that the Board of Directors of ONGC has approved formation of a JV company with shareholding in the ratio of 50:25:25 by ONGC, MRPL and OpaL, respectively.
MRPL said that the company shall contribute ₹12.5 crore towards equity share capital in the said JV company subject to the approval of the Department of Investment and Public Asset Management (DIPAM), under the Union Finance Ministry.
The proposed JV company will integrate the petrochemicals marketing of group companies and bring synergy in their marketing operations. The JV company will reduce cost and increase revenue through improved pricing mechanism, logistics and grade optimisation and production of speciality grades. Creation of the JV company will also open an opportunity for undertaking third party sales considering import dependency of the nation in certain petrochemicals, the company said.