Indian Oil Corporation to Set Up 44,000-Ton LPG Bottling Plant at Muzaffarpur

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Researched by Industrial Info Resources (Delhi, India)--Indian Oil Corporation Limited (BSE:530965) (IOC) (New Delhi) plans to expand its liquefied petroleum gas (LPG) bottling capacity under its trade name Indane. The company is setting up a plant in Muzaffarpur and another in Baroda.

The demand for packed LPG in Bihar is being met by two Indane LPG bottling plants in Patna and Barauni, which have a combined capacity of 132,000 tons per year. The company fulfills the state's total LPG requirement of 196,000 tons per year, meeting the shortfall of 64,000 tons per year from neighboring states.

The proposed bottling plant in Muzaffarpur will ensure uninterrupted LPG supplies to North Bihar, as this area is vulnerable to supply disruptions due to periodic floods and road blocks. The plant will benefit the people in Bihar and Jharkhand, and signals more growth for these states and IOC.

"The Indane bottling plant at Muzaffarpur will be built at an estimated cost of $8.2 million and will be commissioned on March 21, 2011," said G.C. Daga, the director of marketing for IOC. "Built over 13.3 acres of land, the plant has a capacity of 44,000 tons per year and will be equipped with modern bays, mounded storage, cylinder-shed facilities for installing electronic carousels, and other allied facilities.'' Daga added that Indian Oil Corporation Limited is seeking alliances to enhance non-fuel business at its retail points by converting them into one-stop convenience points. There is an ensuing plan to introduce items of daily needs for the customers through Indane networks for distributors and petrol/diesel stations.

IOCL supplies nearly half of India's petroleum consumption, delivering petroleum products to millions of people every day through the countrywide network of about 35,600 sales points (55% of the industry). The company has 140 bulk storage terminals and depots, 99 aviation fuel stations and 89 Indane LPG bottling plants. The corporation's LPG bottling capacity now stands at 4.07 million tons per year. It delivers Indane cooking gas to the doorsteps of 56 million households. In 2009-10, IOC sold 69 million tons of petroleum products, registering 4.1% growth over previous year.

IOC is India's largest company by sales, with a turnover of $60.2 billion and a profit of $2.27 billion.

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