Adnoc Distribution, the UAE’s largest fuel and convenience retailer, has signed an agreement with Indian fuel retailer Hindustan Petroleum Corporation Limited to explore opportunities for expanding their lubricants and allied products businesses in the UAE, India and other markets.
The agreement establishes a framework for both companies to foster “mutually beneficial cross-border business synergies” while leveraging their local market capabilities and infrastructure, the companies said on Monday.
The move comes as both fuel retailers look to boost the efficiency of their overseas lubricant operations, including the supply and access to logistical marketing support services.
“This agreement demonstrates our strategic approach to collaborating with leading partners worldwide,” said Bader Al Lamki, chief executive of Adnoc Distribution.
“With HPCL’s robust performance record spanning over a century, we aim to establish a strong presence in India, one of the world’s largest and rapidly growing markets.
“Today’s announcement marks another significant milestone in Adnoc Distribution’s international expansion journey as we strive to enhance our position in key lubricant markets worldwide.”
In India, the world's third-largest crude importer, energy demand has increased rapidly as the country continues to urbanise and the manufacturing sector develops.
India increased its imports of discounted Russian crude after the start of the Ukraine war last year, and is focusing on diversifying its crude supply while increasing production at home.
In February, India announced a pilot for an ethanol blended petrol called E20.
The fuel will be first made available at stations in 15 cities before a nationwide distribution over the next two to three years, India's Prime Minister Narendra Modi said at the time.
Last year, India moved up the deadline for blending petrol with 20 per cent ethanol by five years to 2025.
Adnoc Distribution is “the perfect partner for us to build our offering, as their production and marketing capabilities will be instrumental in expanding our business and footprint in the international lubricants’ markets”, said Sanjay Kumar, executive director and head of lubes SBU, HPCL Middle East FZCO.
Adnoc Distribution has been entering more sectors.
In January, Adnoc Distribution and Abu Dhabi National Energy Company, known as Taqa, said they would form a joint venture that will build and operate electric vehicle infrastructure in Abu Dhabi.
That month, the company said it also planned to reduce its carbon intensity by 25 per cent by 2030.
Adnoc Distribution's first-quarter net profit jumped 5.5 per cent to Dh551 million ($150.05 million) on an annual basis, driven by higher fuel volumes and efficiency improvement measures.
