| IOC chief M. S. Ramachandran (right) with IBP managing director Arun Jyoti in Calcutta on Wednesday. A Telegraph picture
Calcutta, Sept. 3: IBP, subsidiary of Indian Oil Corporation (IOC), plans to hive off its engineering division into a joint venture.
Chart Industries, a US multinational, has already shown interest in the venture. However, formal discussions are yet to begin, managing director Arun Jyoti said here today.
The engineering group has been the pioneer in India in the field of cryogenics and vacuum technology.
Jyoti said the business, which is currently running at a loss, has a good future once the LNG terminal at Dahej in Gujarat is completed.
IBP has recently signed a memorandum of understanding with Chart Industries for technological collaboration.
“Chart Industries is the largest player in the LNG transportation business and its association has opened up new business opportunities both in the country and abroad,” Jyoti said.
IOC chairman M. S. Ramachandran has been very optimistic about IBP’s engineering business as the Dahej terminal is expected to be completed by March next year.
IBP has set a turnover target of Rs 10,000 crore this fiscal compared with Rs 8753.09 crore posted in 2002-03.
Following the footsteps of IOC, the company plans to enter the Sri Lankan market in a big way.
Ramachandran has, however, made it clear that there is no immediate plan of merging the two companies.
Indian Oil Corporation (IOC) has decided to lay a pipeline to carry crude from Paradeep port to Haldia in order to save freight cost.
Ramachandran said the pipeline would make the refineries in Haldia and Barauni, which have been suffering heavy losses due to the high freight cost, viable.