Adani Enterprises Limited (NSE: ADANIENT). Member of the Adani Group one of the most dynamic conglomerates with diversified businesses and the developer of the Mundra Port, has signed an exclusive joint venture agreement with the Chemoil (SGX-ST: CHEL.SI), one of the world’s leading physical suppliers of marine fuel products. This will enable the joint venture, Chemoil-Adani Private Limited to begin supplying marine fuel in the Mundra port as its first step to expanding presence throughout the Pan-Indian fuel oil and petroleum product markets.

Mundra Port is the largest private port in India and is located west of Kandla Port in the Gulf of Kutch in the western Indian state of Gujarat. Strategically positioned near the main shipping routes of Asia, the Middle East, Europe and Africa, it is the ideal location for the joint venture’s launch and expansion to other Indian ports for capturing the vast potential of India’s marine fuel market. Global expertise of Chemoil effectively blends with Adani Group’s understanding of the Indian market, local sourcing and distribution capability and its competencies in operating a modern port.

Clyde Michael Bandy, Chemoil Chairman and CEO, commented: “This venture is a significant opportunity for Chemoil to make an early strategic entry into India’s promising marine fuel market. By teaming up with an established player and building a strong presence in the region, Chemoil is well-positioned to realize our vision of being a key player in the development of the Pan-Indian fuel oil and petroleum product markets. As the first international marine fuel supplier to seriously approach the Indian market, we are delighted to have found such a strong partner in the Adani Group, who have been pivotal in developing Mundra as India’s most advanced port and have unrivalled regional knowledge and networks, that will be huge assets to the venture.”

Bandy continued: “Mundra is well-situated for supplying the rising number of vessels of all types that call in the Gulf of Kutch. This joint venture creates additional synergies with Chemoil’s existing businesses in Fujairah and Singapore and further demonstrates the entrepreneurial flair combined with the adaptability and strong commercial thinking that is synonymous with Chemoil.”

The joint venture company will be 50:50 owned by Chemoil and the Adani Group with equal representation on the Board. The company will have an initial investment of up to US$10 million, which can be increased as the business requires. The company will lease storage terminal facilities from the Mundra Port Special Economic Zone. The port is currently implementing a robust infrastructure upgrading program to expand its capacity and efficiencies, which will enable the joint venture to exert tighter control on operations to manage costs and ensure reliable fuel delivery. Operations will be supported initially by barges owned by the Adani Group.

In conclusion, Gautam S Adani, Chairman of the Adani Group, said: “As the Port of Mundra continues to position itself as a leading maritime center both in the State of Gujarat and in the international arena, we are tireless in our commitment to developing management, technology and infrastructural expertise to support rapidly increasing trade. Identifying new opportunities to develop service offerings and operational capabilities is a key part of creating a world-class port. With over 27 years’ experience in the marine fuels market, Chemoil brings strong brand recognition, global industry market know-how and operational expertise. By combining our competencies, we look forward to building a business that will facilitate mutual growth to fulfill our ambitions and realize vast untapped potential in India.”

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