A Joint Venture Agreement was signed between Golchha Group (HH & Co.) on June 01. Nepal and Indian Oil Mauritius Limited (IOML), Indian Oil’s wholly-owned subsidiary, to erect a state-of-the-art lube blending plant for local production of SERVO lubricants in Nepal. The JV shall also explore the possibility of investment in other energy sector, including waste to energy.
The lube blending plant is expected to be ready by end of 2024. In this industry, both companies are equal 50:50. A joint investment agreement has been reached. 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.”
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 hand in Nepal’s growing economy.
The partners are dedicated to fostering regional economic growth, promoting self-reliance, and driving technological advancement in the alternative energy, waste to energy, etc. The formation of the JV for erecting 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. This historic collaboration marks the beginning of an exciting new chapter of partnership that will fuel Nepal’s growth and prosperity. The joint venture between Indian Oil subsidiary (IOML) and Golchha Group, shall pave way for a brighter future in Nepal for generations to come.