Chemoil, Adani Group form venture for marine fuel in Mundra
Singapore-based Chemoil, a supplier of marine fuel products, on Monday said it has signed an exclusive joint venture agreement with the Indian conglomerate Adani Enterprises Ltd., developer of Mundra Port in the state of Gujarat.
The joint venture, Chemoil-Adani Private Ltd., will begin supplying marine fuel in the port as its first step to expanding presence throughout the Pan-Indian fuel oil and petroleum product markets, the company said in a statement.
Chemoil said that establishing a presence in Mundra would allow it to eventually expand to other Indian ports, saying the country’s marine fuel market has “vast potential.”
'This venture is a significant opportunity for Chemoil to make an early strategic entry into India's promising marine fuel market,” said Clyde Michael Bandy, Chemoil chairman and chief executive officer. “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. 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.'
The joint venture company will be 50-50 owned by Chemoil and the Adani Group with equal representation on its board. The company will have an initial investment of up to $10 million, which can be increased as the business requires. The company will lease storage terminal facilities from the Mundra Port Special Economic Zone. Operations will be supported initially by barges owned by the Adani Group.
Chemoil, Adani Group form venture for marine fuel in Mundra
