Gulf Oil Corporation Ltd, a Hinduja group entity, has set up a joint venture in Indonesia, named PT Gulf Oil Lubricants Indonesia with an investment of $6,12,000.
Gulf Oil would hold 38 per cent stake in the venture while its JV partners Tarapur Grease Industries Pvt Ltd and Tawang Swasti Rawikara PT would hold 32 per cent stake each, the company informed the Bombay Stock Exchange on Tuesday.
The agreement for the joint venture, with total equity investment outlay of $2.8 million, was signed on August 20, 2003 and the capital infusion in the first phase is expected to be about $1.7 million, it said.
The Indonesian JV has targeted eight per cent market share in the first two years of operations, it said, adding the value of business in the first year of operations is likely to be around $9 million.
Gulf Oil would have three nominees on the board, while Tarapur Grease and Tawang Swasti would have two each, it added.