Ranjan Kumar Mohapatra (Managing Director, IOML): “Mauritius has the potential to be a Petroleum Hub”

One of the major actors of the island’s oil industry, IOML wants to support the government in the realization of its Petroleum Hub vision. Its Managing Director also expresses the wish to expand activities in the African region.

BUSINESSMAG. Tell us about the performance of IndianOil (Mauritius) Ltd (IOML) for the financial year 2013-2014…

The last financial year has seen a slight drop in profit despite improved physical performance. This is mainly due to margin pressure. However, through continuous innovation and focus on both top-line and bottom-line growth, we have been able to minimize the effect. For the financial year 2013-2014, the company has achieved a turnover of Rs 7.86 billion. We have been able to improve our market share considerably as well. This performance is due to team effort and uninterrupted attention to technological innovation and improving customer service.

BUSINESSMAG. How did the company diversify its activities?

We always update ourselves to meet the needs of our customers. At the same time, we have not deviated from our focus on the society we serve. Be it the constant upgrade of our facilities like adding tanks to our Mer Rouge terminal or improving our filling stations, one of them having become fully solar-powered in synchronization with the Maurice: île Durable project, we have been revisiting ourselves and taking steps to go further. The 25,000 ton joint-industry tankage facilities coming up in Mer Rouge is another responsibility we have added to our company. We also launched our Petro Card which gives some advantages never offered in Mauritius before.

BUSINESSMAG. There have been rumours about IOML’s engagement in a refinery project in Mauritius…

You have used the word ‘rumours’ and I would let it remain as such for the time being. Setting up a refinery is not an easy job, irrespective of its capacity. At the same time, I have always opined that there exists a scope for a refinery in the Indian Ocean region but it needs to be looked into critically. Till then, we have been showing our interest in partnering with the government in whatever way for the proposed ‘Mauritius as Petroleum Hub’ vision. I must share that Indian Oil Corporation (IOC), our parent company, is the largest company in India having a refining capacity of nearly 65.7 million metric tons per annum, with another 15 million metric tons coming up by the end of this year. IOC would love to share its expertise to help in the achievement of this vision.

BUSINESSMAG. Do you think the island really has the potential to become a Petroleum Hub in the region?

In every respect, I strongly feel that Mauritius has the potential to become a Petroleum Hub. The geographical position of the island, its stable political situation and democratic set-up as well as the current trade movement routes give Mauritius a lot of advantages over competitors.

BUSINESSMAG. You did not mention the Mauritian port which could be more dynamic, according to some stakeholders…

I would not agree with that. In fact, in my view, the Mauritian port has been highly progressive in its approach and has already laid down a clear path ahead of it. The movement in this path may not have been as fast as all stakeholders would have wished it to be, but it is not that far too. The liquefied petroleum gas (LPG) storage facilities have already been commissioned while the extension of the Mauritius Container Terminal is underway. The Mauritius Ports Authority (MPA) has also been very pragmatic in its fees so as to attract more users. As a port user, I appreciate the way the MPA makes an effort to engage with all stakeholders.

BUSINESSMAG. Do you consider the port of Beira in Mozambique as a serious competitor?

Certainly. Any port on the East African coast could be a competitor. Beira is a modern port with a very good connectivity with Zambia and Zimbabwe. However, being on the mouth of a river, it has its pitfalls. It is a tidal port and hence, 24-hour berthing is not ensured for all kinds of vessels. Similarly, night navigation is understood to be highly restricted. Comparatively, Port Louis has a clear-cut positional advantage.

BUSINESSMAG. Is IOML using Mauritius to target Africa or other countries in the region?

As one of the most stable countries in the region, Mauritius can definitely be a gateway to Africa for our parent company. I must say that since our establishment in Mauritius, IOML has been doing a very good job here, meeting with the aspirations of all stakeholders. We would like to replicate the success in other African countries, subject to favourable conditions.