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A Joint Venture Agreement was signed between Golchha Group (HH & Co.), Nepal and Indian Oil Mauritius Limited (IOML), Indian Oil’s wholly-owned subsidiary, to establish a state-of-the-art lube blending plant for local production of Servo lubricants in Nepal. A joint investment agreement has been reached. The joint venture shall also explore the possibility of investment in another energy sector, including waste to energy.
The Lube Blending Plant is expected to be ready by the end of 2024. In this industry, both companies are equal to 50:50. Under the first phase of this joint investment, the official capital investment will be approximately 600 million.
Speaking about the agreement, Shekhar Golchha, Chairman and Managing Director of Golchha Group, said, “We are thrilled to announce the commencement of a significant partnership with Indian Oil, India's largest company. This marks the beginning of a remarkable journey for us at Golchha Group, as we embark on our first joint venture. This milestone collaboration signifies a pivotal moment in the history of Nepali industrialists and the industrial landscape of our nation. The establishment of the plant is just the initial step in our extensive plans to foster further industrial growth and expansion. We express our utmost enthusiasm for this alliance and look forward to a prosperous and successful partnership with Indian Oil.”
The Joint Venture envisions future expansions, strategic partnerships, and diversification of product lines to meet the evolving needs of Nepal's growing energy needs and join hands in Nepal's growing economy.
The partners are dedicated to fostering regional economic growth, promoting self-reliance, and driving technological advancement in alternative energy, waste to energy, etc. The formation of the JV for establishing a lube blending plant in Nepal marks a significant milestone in realizing the vision of 'Made in Nepal' and advancing technology in the lubricant industry. Moreover, it signifies the partners' shared commitment to sustainable development, clean energy and responsible business practices.
The joint venture between the Indian Oil subsidiary (IOML) and Golchha Group, shall pave the way for a brighter future in Nepal for generations to come.
