MUMBAI: UAE-based Gulf Petrochemicals Group, which completed two acquisitions during the current fiscal year to launch its operations in India, is exploring more acquisitions to expand its presence in the country. Gulf Petrochemicals Group on Wednesday announced that it will make an open offer to acquire up to 26% stake in the company after purchasing 72.23% stake in the company from promoters of Sah Petroleum, a company listed on the Indian Stock Exchange.

Gulf Petrochemicals had earlier acquired Royal Dutch Shell’s bitumen business in Gujarat for about Rs 200 crore. “Till now, we have been a trader of bitumen, base oils and fuel oils. Now we want to transform into a marketer and manufacturer. India will play an important role in this strategy and we are looking at making more acquisitions. Gulf S Thangapandian, managing director of Petrochemicals, told The Economic Times.

“Our company is owned by an Indian who came to the UAE to do business. The signals from the Indian government are positive and the investment climate looks good, so I think we can expand our presence in India and then take these brands overseas. Gulf Petrochemicals will leverage Sah Petroleum’s presence in industrial lubricants to expand its business in India. This acquisition is in line with our strategy to grow as a global player in the oil industry. Goyel, Chairman, Gulf Petrochemicals Group “We are expanding our product portfolio and expanding our ability to manufacture, supply and distribute lubricants from base oils to finished lubricants around the world.””

Sah Petroleum public offering began on October 10 from day and will begin on October 28 close. Thanhangapandian said that Sah Petroleum is valued at around Rs 800 crore at the public issue price. Though the acquisition of the Gujarat bitumen plant is small, it is strategic for the company as it aims to meet the growing demand for road construction materials in India. The company has also invested 25 companies Rs 100 crore to build a high capacity warehouse terminal at Pipavav, Chigirat.

“The acquisition of Savli plant near Baroda will complement its plans to build a high capacity warehouse terminal in Gujarat for “various petroleum products in Pipavav, Gujarat”. Gulf Petrochemicals produces 30,000 tons of bitumen specialties annually. “These include asphalt emulsions, fine surface emulsions, gum powder modified asphalt, polymer modified asphalt and other cold mix road construction products.