CHENNAI PETROLEUM - PSU

Chennai Petroleum is a 51.9% subsidiary of Indian Oil and co-promoter National Iranian Oil company hold a minority 15.4% stake. Chennai Petroleum operates two refineries with a combined capacity of 10.5 MTPA. The company recently completed water desalination and 20 MW power plant making itself sufficient in key inputs. The company is also adding capacity to its Manali refinery, besides upgrading it to Euro III/IV compliant. Going forward, the company will also set up a single point mooring and crude oil terminal to reduce its logistical costs. It also plans to invest in improving distillate yields through residue upgradation. Although current conditions in refining business do not project a rosy picture in immediate future, investors could invest for long-term.