In what will mark its entry in the overseas retail space, state-owned oil company Hindustan Petroleum Corporation Ltd (HPCL) is all set to become a household name in the Pacific region.
HPCL has entered into an understanding with Fijian Holdings Limited (FHL) to manage and operate the fuel marketing business of British Petroleum SWP (BP SWP) in the South West Pacific countries of Fiji, Tonga, American Samoa, Vanuatu, Tuvalu and Cook Islands.
The businesses of BP SWP, which includes 70 petrol pumps, 11 oil terminals and depots besides six aviation storage facilities in Fiji and the Pacific region, have recently been acquired by FHL, a publically-listed diversified investment company in Fiji.
BP SWP is a fully-owned subsidiary of BP, UK. Fiji operations contributed 53 per cent of the annual fuel sales of BP. HPCL, a Fortune 500 company, is India's second largest oil marketing company, with 8,373 fuel retail outlets.
Confirming the move, HPCL chairman and managing director, Arun Balakrishnan said, "Our team is in Fiji to work out the details of the management agreement with FHL."
Sources said HPCL has also been offered an equity stake of around 25 per cent by FHL in the newly acquired firm. While Balakrishnan refused to comment on this aspect, he agreed that the changed logos — with the new company name and after de-branding BP SWP's signs — will also carry HPCL's name along.
"I can't about the specifics but HPCL will its get due recognition. We will also get to sell HPCL's lubricants at the new outlets there."