Chemoil in Indian JV

Singapore-listed international physical bunker supplier has set up a joint venture agreement with the NSE-listed Indian conglomerate Adani Enterprises which is developer Mundra Port, mgn reported. The JV, Chemoil-Adani, plans to supply bunkers at Mundra as a first step to expanding presence throughout the Pan-Indian fuel oil and petroleum product markets.

Mundra Port is the largest private port in India and is located west of Kandla Port in the Gulf of Kutch in the western Indian state of Gujarat. Strategically positioned near the main shipping routes of Asia, the Middle East, Europe and Africa, Chemoil says the port is the ideal location for the joint venture’s launch and expansion to other Indian ports for capturing the vast potential of India’s marine fuel market.

Chemoil CEO and chairman Mike Bandy said: “This venture is a significant opportunity for Chemoil to make an early strategic entry into India’s promising marine fuel market. By teaming up with an established player and building a strong presence in the region, Chemoil is well-positioned to realize our vision of being a key player in the development of the Pan-Indian fuel oil and petroleum product markets. As the first international marine fuel supplier to seriously approach the Indian market, we are delighted to have found such a strong partner in the Adani Group, who have been pivotal in developing Mundra as India’s most advanced port and have unrivalled regional knowledge and networks, that will be huge assets to the venture.”

Bandy continued: “Mundra is well-situated for supplying the rising number of vessels of all types that call in the Gulf of Kutch. This joint venture creates additional synergies with Chemoil’s existing businesses in Fujairah and Singapore and further demonstrates the entrepreneurial flair combined with the adaptability and strong commercial thinking that is synonymous with Chemoil.”

The joint venture company will be 50:50 owned by Chemoil and the Adani Group with equal representation on the Board. The company will have an initial investment of up to US$10 million, which can be increased as the business requires. The company will lease storage terminal facilities from the Mundra Port Special Economic Zone.

Source: Transportweekly