Global giants are betting big on India. Petrloeum major Total of France is looking at setting up a refinery here while automobile biggie Nissan is planning to manufacture cars in the country.
Total, the world's largest oil and gas company, intends to set up the refinery jointly with a local player. Nissan wants to go solo and also intends to source automobile components from the country.
"India is a rapidly growing market," Gary Jones, Total's senior vice-president for refining and marketing in Asia, told a press conference on Thursday. "Refineries are highly capital intensive and we would prefer a joint venture. It makes sense to participate with a local partner," he added.
A foreign player has to invest nearly $450 million in oil-related infrastructure to get access to the retail sector for oil products. "If we have to invest that kind of money in infrastructure, it has to be in a refinery," Jones said.
He, however, declined to comment on whether the company was already in talks with Indian refinery companies for picking up a stake.
India, Asia's fourth largest economy, imports 70 per cent of its crude oil and most of the country's 25 refineries, with a capacity to process 2.5 million barrels per day, are run by state-run companies.
For Nissan, the setting up of a manufacturing base would be part of its broader India plans, Gina Pasco, Nissan Motor Co's manager for general overseas market, public relations, said.
"We see great potential for Nissan in the Indian market and expect India to be one of the key contributors to Nissan's growth in the near future," said Yoshie Motohiro, managing director, Nissan Motor India Pvt Ltd, an Indian subsidiary.
Set up with an investment of Rs 4.2 crore, the subsidiary is responsible for the import of Nissan vehicles and spare parts, as well as the sales, marketing, distribution and after sales support of Nissan's models in India.
So far, Nissan had launched two variants of its SUV model X-Trail in the country. Launched in August 2004, X-Trail variants Comfort and Elegance were priced in the Rs 20-24-lakh range.
"Between August 2004 to March 2005, we have sold about 130 cars. Our plan is to achieve a target of 250 units for the current year," said Motohiro. The company, however, did not have any plans to bring the prices of the vehicle down, she added.
Nissan had commissioned Aquest Auto for sales, service and spare parts. Mumbai-based Aquest will handle service and maintenance for Nissan's customers in the country's western region comprising of Maharashtra, Gujarat, Madhya Pradesh, Goa, and Chhattisgarh.
Cars and gasoline
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