New Delhi: Indian Oil Corporation, the country’s largest oil trading company, proposes to leverage its growing petrochemical operations to expand the textile business as it seeks to diversify operations and offset the risks associated with oil operations.
At a recent Asia Pacific oil summit, IOC President SM Vaidya said the company is targeting petrochemical expansion as it gives it the ability to reduce the risk of lower refining margins.
The president said that the petrochemical expansion would seek to enter niche areas with the possibility of future integration in the textile business.
Petrochemicals present a great opportunity in India, as per capita consumption remains very low. This is expected to accelerate in the next few years and the IOC wants to capture most of the emerging markets.
The IOC is expanding its petrochemical capacity by more than 70 percent from its current 3.2 million tons per year. It is also about new technologies that reduce the cost of producing petrochemicals.
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