Adani Enterprises sign JV pact with Chemoil

Ahmedabad: Adani Enterprises (AEL), a constituent of the Adani Group, has signed an exclusive, 50:50 joint venture agreement with Chemoil, one of the world’s leading physical suppliers of marine fuel products, known as Chemoil–Adani Private Ltd, to begin supplying marine fuel at Mundra Port as its first step to expanding presence in fuel oil and petroleum product markets across India.

Mundra Port is the largest private port in India strategically positioned near the main shipping routes of Asia, the Middle East, Europe and Africa. It is the ideal location for the joint venture’s launch and expansion to other Indian ports for capturing the domestic marine fuel market, a spokesman of the Adanis said in a statement here today.

“Global expertise of Chemoil blends with the Adani Group’s understanding of the Indian market, local sourcing and distribution capability and its competencies in operating a modern port,” Mr Clyde Michael Bandy, Chemoil Chairman and CEO, said adding that the venture is a significant opportunity for Chemoil, as the first major global fuel oil supplier, to make an early strategic entry into India’s marine fuel market. 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 the board. It will have an initial investment of up to $10 million, which can be increased as the business requires, and lease storage terminal facilities from the Mundra Port Special Economic Zone.

The port is currently implementing an infrastructure upgrading programme to expand its capacity and efficiencies Operations will be supported initially by barges owned by the Adani Group.

Mr Gautam S Adani, Chairman of the Adani Group, said that identifying new opportunities to develop service offerings and operational capabilities is a key part of creating a world-class port. With over 27 years’ experience in the marine fuels market, Chemoil brings strong brand recognition, global industry market know-how and operational expertise.