Malaysian governmentowned Petroliam Nasional Berhad, better known as Petronas, is looking to expand its operations in India by entering into more longterm contracts for supply of liquified natural gas (LNG) and scaling up its lubricants business.
The company, which has been in business with Indian companies for over two decades, is for the first time setting up headquarters for all its local businesses in Delhi, and has appointed a general manager to head it.
Thus far, it only had different senior executives dealing in specific businesses in the country. “India is a very exciting market for us given its growth rate of 7 per cent and that it is energy deficit. It is our largest market for crude and that relationship will continue. We are very bullish on petrochemicals, LNG and lubricant business in the country,” Wan Zulkiflee, president and group CEO, told reporters during a visit to meet India clients.
India currently accounts for around 3 per cent of the company’s global sales of $50 billion, but the share is expected to increase soon. Almost 80 per cent of its India revenue is from the sale of crude oil.
The balance comes from LNG, petrochemicals and lubricants business.
“Our lubricant business in India is very small, growth and market share are both in single digit, but we want to treble the business in the next five years,” Zulkiflee said.
The company has committed $150 million investment on expanding its lubricant business, of which $50 million is being invested in a manufacturing plant to be commissioned by the first quarter of 2018. Read More…