(LiveMint)
The impending merger of state-run Hindustan Petroleum Corp. Ltd (HPCL) and Mangalore Refineries and Petrochemicals Ltd (MRPL) may put a break on MRPL’s fuel retailing expansion plans, leaving its parent Oil and Natural Gas Corp. Ltd (ONGC) to fulfil these ambitions through HPCL, said two officials aware of the development.
MRPL is a wholly owned subsidiary of ONGC and operates a 15 million tonnes per annum refinery in Mangalore, Karnataka. This January, ONGC acquired the government’s 51.11% stake in HPCL through an all-cash deal of ₹36,915 crore. “MRPL has six fuel retail outlets. At best it can expand to a few more. But HPCL has 15,127 retail outlets. MRPL can never match that. Though MRPL is not competing with HPCL, in all probability, ONGC’s retail ambitions will be fulfilled with HPCL now onboard,” said one of the officials mentioned above.
Post merger with HPCL, the fuel retail outlets of MRPL could be rebranded as HPCL’s. MRPL’s retail outlets are called HiQ, he said. Currently, MRPL relies on oil marketing companies (OMCs) Indian Oil Corp. Ld, Bharat Petroleum Corp. Ltd and HPCL to market its products in the fuel retail space.
