The stalling of the divestment process will not make any significant change in Hindustan Petroleum Corporation Ltd's plans, its chairman and managing director M B Lal said.
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"There is no real change as such. But now we are looking at opportunities overseas such as the growing Sri Lankan and Bangladesh markets," Lal said. Lal was briefing the media post AGM in Mumbai on Thursday.
When quizzed whether the competitors now know more about HPCL following their due diligence on account of privatisation process, Lal said: "There is no potential threat. The oil industry is a close club and most of the information is known to industry as private companies continue to pick up skilled persons from the public sector oil companies."
The chairman and managing director said, "HPCL is not a static company. In competitive areas such as retail and marketing, we will have to move fast and make changes. Therefore, even within a few months, our competitors will not find us the same as in the due diligence process. We might be different by next year."
Reliance Industries, British Petroleum and Kuwait Petroleum have carried out due diligence following the government opening up HPCL's data room for inspection on August 28.
While RIL has successfully completed the due diligence process, the two multinationals have "almost completed 80 per cent of the due diligence," say HPCL executives.
The Supreme Court, on September 16, ordered the government to seek Parliament's approval before proceeding for privatising HPCL and Bharat Petroleum Corporation Ltd, thereby halting the divestment process of the two oil companies.
Even as the 21-page verdict of Supreme Court has "made privatisation uncertain," HPCL management has decided to carry on with its work and is tapping opportunities beyond the country.
Lal claimed that HPCL will now look at opportunities beyond India.
HPCL has submitted expression of interest for 100 retail outlets in Sri Lanka. The EoI also includes 33 per cent interest in the storage and distribution company of Ceylon Oil Company.
"We have done our due diligence for the retail outlets in Sri Lanka and will soon submit price and technical bid," Lal added.
HPCL is also eyeing the Bangladesh market which is gearing up for deregulation of petroleum sector.
"We are keen on the privatisation process of oil companies by the government of Bangladesh," he added. But till then, HPCL is evaluating the option of setting up LPG as well as lube blending plant.
