GP Petroleums Ltd (GPPL), a manufacturer and marketer of lubricants and industrial oils, has agreed to invest ₹44.27 crore in Incubit Pipavav Terminal Pvt Ltd (IPTPL), marking its entry into India’s liquid-storage and terminal logistics sector.
The transaction combines a minority equity investment with management control. The investment will provide GPPL access to IPTPL’s terminal at Pipavav Port in Gujarat, enabling it to explore storage, handling and logistics infrastructure opportunities alongside its existing lubricants business.
Entry into terminal logistics
GPPL plans to strengthen connectivity between the terminal and hinterland markets, evaluate expansion opportunities at Pipavav and explore further investments in the logistics infrastructure sector.
The company expects the new business to support supply-chain security and create additional revenue streams through liquid storage and terminal handling.
Focus on recurring income
“We see Pipavav as the first step towards building a broader logistics infrastructure business alongside our core lubricants operations. Securing management control through a minority investment gives us a platform to connect port infrastructure with hinterland demand and participate in India’s growth,” GP Petroleums Chairman and Managing Director, Ayush Goel.
Our aim is to develop recurring storage and terminal income that strengthens the resilience of our cash flows over time,” he said.
Investment funded through internal reserves
The shares will be acquired from existing IPTPL shareholders, potentially in multiple tranches over one year. GPPL will fund the investment through its internal reserves.
The final consideration will remain subject to changes in IPTPL’s share valuation.
Completion subject to conditions
Completion of the transaction is subject to the fulfilment or waiver with relevant statutory and regulatory requirements. The investment will take effect in accordance with the definitive agreements and applicable closing conditions.
“We will evaluate expansion and other opportunities with a focus on disciplined investment and long-term value creation,” he said.