InvestorQ : What does the future hold for BPCL, especially considering that Vedanta Group is interested in the group? Is that a good deal?
Dia Deshpande made post

What does the future hold for BPCL, especially considering that Vedanta Group is interested in the group? Is that a good deal?

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Ria Jain answered.
2 years ago
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In the case of BPCL, the chairman of the Vedanta Group Mr. Anil Agarwal had stated that BPCL would be a valuable asset and that the Vedanta group would be interested in taking a stake in the company. Vedanta is a commodities conglomerate with exposure to sectors aluminium, zinc, copper, iron ore and crude oil among others. The one missing link in the Vedanta product portfolio is the refining and marketing of oil.

Vedanta had acquired the capacity of Cairn India more than 10 years back and the acquisition of BPCL will give it an automatic extension to the refining and oil marketing business. This will enable the Vedanta group to position as an end-to-end oil and gas conglomerate. BPCL employees unions are already agitating that BPCL was being sold at a low price compared to the value of the assets. For Vedanta, even if it has to pay a higher price, it would be worthwhile.

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