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Iffco to bid for HPCL, BPCL

The Indian Farmers Fertilisers Co-operatives will bid for two public sector oil companies HPCL and BPCL as part of its ambitious business diversification drive.

"Together with Krishak Bharati Cooperative Limited (Kribhco), we are going to bid for HPCL and BPCL which are listed for divestment by the government. It will be our joint effort to acquire one of these companies," Iffco managing director U S Awasthi said.

He said that the Iffco-Kribhco combine would also be in the race for picking up government stake in Shipping Corporation of India, apart from any fertiliser companies that come up for sale.

"But we will concentrate on our endeavour for acquisition of one of the oil companies. Our main goal will be to purchase these oil refining enterprises as it will be extremely beneficial to our urea units," Awasthi said.

Acquisition of oil companies would ensure adequate and timely supply of naphtha to both Iffco and Kribhco.

Naphtha is an important feedstock for urea manufacturing that happens to be the core business of the fertilizer co-operatives.

However, feedstock is not the sole reason behind the move. Awasthi said there are several synergies between fertiliser and petroleum sectors, adding Iffco-Kribhco's engineering expertise could easily be extended to refining activities too.

Iffco achieved highest productivity and production as also sales last year with lowest energy cost despite huge damage in Gujarat earthquake. He said funds would not be a constraint in the drive to acquire PSU stakes.

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