GP Petroleums Limited has informed the Exchange about Intimation of execution of Joint Venture Agreement with West Coast Oils LLP.
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GP Petroleums has signed a 50:50 joint venture agreement with Vadodara-based West Coast Oils LLP to manufacture and trade specialty bitumen products, including Bitumen Emulsions, Polymer Modified Bitumen (PMB), and Crumb Rubber Modified Bitumen (CRMB). Both parties will contribute equally to the JV company's equity, share equal board representation, and may also extend unsecured loans at 12% per annum interest. The newly-formed JV company will acquire a bitumen plant from New Horizons Asphalt Private Limited, which is a related party of GP Petroleums (this related-party transaction was approved by the Audit Committee and Board on October 10, 2024). The move is aimed at expanding the company's footprint in the specialty bitumen segment and capitalising on India's infrastructure growth. This is a domestic joint venture, and the investment is not classified as a related-party transaction for GPPL.
This JV could strengthen GP Petroleums' position in the higher-margin specialty bitumen space, riding on government infrastructure spending. However, with a 50:50 split, profits and risks are shared equally, and the actual investment size remains undisclosed at this stage.