IOT acquisition deal to help Adani Group to foray into oil exports

26 Mar 2024 , 03:14 PM

Adani Ports and Special Economic Zone’s (APSEZ) acquisition of a 49% stake in Indian Oiltanking last week will help the Adani Group to expand the Adani arm’s storage and transportation capacities for petroleum products and possibly set the platform to foray into oil exports, through the joint venture company.

Adani Ports CEO and Whole Time Director Karan Adani said that with this acquisition, the company’s oil storage capacity jumps 200% to 3.6 million kilolitres, making it India’s largest third-party liquid storage entity. “This step will help the company with their intention of becoming the largest transport utility globally,” he said.

“This acquisition is also well aligned with our strategy of diversifying the cargo mix with focus on products and services having higher realization and margins. The stake deal will further strengthen our strategic partnership with IOCL which is the India’s largest refiner and customer of oil storage tanks,” Adani said.

According to the media statement, the IOTL is on a growth spree given the expanding demand for oil products in the country. The company recently signed a 25-year BOOT agreement with Numaligarh Refinery Ltd for the construction, operation, and maintenance of 0.6 million kilolitres of crude storage tanks at the Paradip Port.

Besides, the company is also negotiating on various other major projects, both at existing facilities and new locations.

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