The board of Oil and Natural Gas Corporation Ltd (ONGC), a public sector enterprise, has approved the formation of a joint venture company (JVC) with its subsidiaries Mangalore Refinery and Petrochemicals Ltd (MRPL) and ONGC Petro additions Ltd (OPaL) to integrate petrochemicals marketing across group entities.
The proposed JV will have a shareholding structure of 50:25:25 among ONGC, MRPL and OPaL, respectively, with MRPL contributing ₹12.5 crore towards equity share capital.
Integration to enhance efficiencies and revenue realisation
The JV entity is expected to consolidate petrochemicals marketing operations of the group, enabling better coordination and synergies across businesses.
It aims to reduce costs and enhance revenue through improved pricing mechanisms, optimisation of logistics, and grade rationalisation, including production of speciality petrochemical products.
Opportunity for third-party sales
The creation of the JV will also open avenues for third-party sales, particularly in segments where the country remains import-dependent.
The move is aligned with ONGC’s strategy to strengthen its downstream and petrochemicals value chain through integrated operations.