Hascol Petroleum announced that it is prepping to set up its new subsidiary, dubbed as Hascol Lubricant Limited, at the cost of approximately $US 20 million. The management of the company has planned to set up an inauguration ceremony for the project today.
The subsidiary will operate the production plant that will produce various types of lubricants. In addition, the plant is expected to be completed and operational within the next two years. Industry watchers believe that the move is a part of company’s bigger plan to diversify its offerings in order to cater the need of diverse customers in Pakistan.
Reports indicate that the company has already bought the land for the project measuring almost six acres at Port Qasim, in collaboration with FUCHS-Germany. It seems that the main objective of the company behind the production of lubricants and different petroleum products is to experience a significant increase in the business of Hascol Petroleum.
It is worth noting that forming a separate subsidiary will help the company to avail tax break benefits under Income Tax Ordinance 2001.
Over the past few years, Hascol Petroleum Limited has been making huge strides in Pakistan in terms of profits and operations. For instance, in November 2016, the company was approached by Vitol Dubai Limited to acquire 10% shares of Hascol Petroleum Limited, which will increase its overall shareholding in Pakistan Oil Marketing Company from 15% to 25%. Adding to that, earlier last year, Vitol Dubai purchased 15% stakes of Hascol Petroleum for $28.1 million, which equals to 18.1 million share at a price of PKR 162/ share.
Keeping the recent moves made by the company in account, it is pretty evident that it is making efforts to acquire competitive edge over its competitors and positioning itself as a market leader. In any case, we’ll keep a track on the upcoming trends of the company to keep our readers up to date.