HPCL to market aviation fuel overseas

Mumbai, Nov 20 | Updated: Nov 21 2005, 05:33am hrs
Hindustan Petroleum Corporation Ltd (HPCL) is planning to export ATF (aviation turbine fuel) from India. "We are currently holding talks with our technical collaborators for the purpose," HPCL director (marketing) S Roy Choudhury said.

HPCL would be the first PSU to market ATF overseas and only the second oil company after Reliance.

HPCL is planning to set up bases in developing countries and these would be in place by the end of 2006.

The high cost of ATF in developing countries was the key to the company's foray as compared to the developed countries, Mr Choudhury added. HPCL has a techno commercial agreement with Chevron Texaco Global Aviation for inputs on current international operating practices and technology in ATF business.

... ATF market share up

HPCL has increased its market share in the ATF business from 11% last year to 16% during the first seven months of the current year. The increased market share has been on account of a 27% growth in its ATF business, HPCL director (marketing) Roy Chowdhry said. This is despite the ATF segment growing by 13% during the period. The total ATF market in India is 2.2 million tonnes and has been growing with the increasing number of airlines in the country.
ATF supplies in India during the past two years grew at a compounded annual growth rate of 35% following the increase in international airlines in India from 3 to 28. IOC had a market share of 65% in ATF while BPCL had a market share of 20.6%. The share of these oil majors is expected to dilute with the increase in HPCL's market share.