Indianoil, which recently got the approval of the Cabinet Committee on Economic Affairs (CCEA) for buying up the entire government stake in the money-spinning additives company, has now initiated the process of procuring the nod of its ``navratna'' board. The joint venture company will continue to be called Lubrizol India Limited.

The joint venture will give Indianoil a foothold in the additives business and allow it to collaborate with Lubrizol Corporation in research and development. Lubrizol Corporation will have access to the Asia-Pacific region, which it has identified as a growing market in the coming years.

The Union petroleum ministry had appointed the Industrial Development Bank of India (IDBI) and ECON to recommend a price for the Lubrizol shares. The recommended price is now awaiting a nod from North Block.

After the price of the Lubrizol scrip is approved, Indianoil will acquire the 60 per cent government shareholding in the company. The remaining 40 per cent of the Lubrizol equity belongs to Lubrizol Corporation of the US.

Indianoil will subsequently transfer 10 per cent of its acquired stake in Lubrizol India to the US company, converting the additives company into a 50:50 joint venture, says an Indianoil release.

Once the capital restructuring is over, Lubrizol India will enter into agreements with its US principal for a licence, trademark, technology transfer and exclusive sales. It will have the exclusive rights to market Lubrizol products in India and will get integrated into Lubrizol Corporation's global marketing network.

Lubrizol India will have access to Lubrizol Corporation's market for additives in South Asia and the CIS. Lubrizol India makes additives for automotive and industrial lubricants.

Lubrizol Corporation of the US is the largest manufacturer of lubricant additives inthe world, with plans to expand its business in the Asia-Pacific region. The US company has 16 plants located in 12 countries. Its additives are marketed through more than 50 sales and technical service offices throughout the world. Apart from infusing equity into its Indian partner, Lubrizol Corporation will lend manufacturing technology and ``state-of-the-art'' formulations.