India Oil Corp, India’s top refiner and fuel retailer, signed an agreement to form a 50:50 joint venture company (JVC) with RR Holdings Ltd., the parent company of Beximco LPG, for LPG business in Bangladesh.
RR Holdings Ltd (RRH), UAE is a diversified conglomerate with operations and investments across industries including Oil & Gas, Power, Textiles & Trading. This new deal inked in the Indian capital New Delhi at a function presided over by Dharmendra Pradhan, Indian Minister of Petroleum and Natural Gas and Steel, is expected to be the catalyst of socio-economic change in Bangladesh due to the availability of affordable LPG in the country.
Just last year, Beximco LPG also exported a consignment of LPG cylinders to the Indian Oil Cooperation (IOC) to deliver to the landlocked northeastern states of India.
Amid uncertainty around COVID-19, both the countries have been able to maintain adequate LPG supply to meet the growing energy requirements. However, this JVC is likely to foster the existing energy infrastructure further and would begin functioning by first acquiring Beximco’s existing LPG assets.
Salman F Rahman, Private Industry and Investment Adviser to Prime Minister Sheikh Hasina and also the co-founder of Beximco Group; Nasrul Hamid MP, State Minister for Power, Energy and Mineral Resources; Sanjiv Singh, Indian Oil Corporation Chairman, among others, spoke on the occasion.
While addressing the event, Dharmendra Pradhan referred to the agreement as a milestone–a promising future for both the countries. Salman F Rahman, who is also one of the most successful businessmen in Bangladesh, hailed the resilient and enduring friendship between India and Bangladesh.
He said, when the whole world is battling the deadly COVID-19, the JVC serves as a testament to the remarkable investment potential of our country under the dynamic leadership of Prime Minister Sheikh Hasina.
Also present at the event, Shayan F Rahman, Chairman of RR Holdings, highlighted the expertise of IOC in the entire hydrocarbon sector, adding, JVC could enable us to become the largest downstream oil and gas company in Bangladesh.
At a timewhen the whole world is looking for a prospective vaccine or drug to cure COVID-19, the businesses are eyeing possibilities which can enhance lives and complement the livelihood of employees. The JVC, though aspires to become the most trusted and premiere LG Company, factors like lube blending plant, LNG, petrochemicals, LPG export to North East India, renewable energy, etc. could become the safest and convenient LPG solutions.