Indian Oil & Golchha Group signs joint venture investment agreement to manufacture servo lube blending plant in Nepal

KATHMANDU: A Joint Venture agreement was struck between the Golchha group (HH & Co.), Nepal, and Indian Oil Mauritius Limited (IOML), Indian Oil’s wholly-owned subsidiary, to build a state-of-the-art lube blending plant in Nepal for the local manufacturing of SERVO lubricants.

The JV will also investigate the prospect of investing in other energy sectors, such as waste to energy.

The Lube Blending Plant is scheduled to be completed by the end of 2024. Both firms are 50:50 in this industry.

A collaborative investment agreement has been reached. The official capital investment in the first phase of this joint venture will be roughly 600 million.

Speaking about the agreement, Mr. Shekhar Golchha, Chair 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 plans future expansions, strategic alliances, and product line diversification to fulfill Nepal’s developing energy needs and contribute to the country’s rising economy.

The partners are committed to boosting regional economic growth, self-sufficiency, and driving technological advancement in alternative energy, waste to energy, and other areas.

The foundation of the joint venture for the construction of a lube blending facility in Nepal represents a key step toward realizing the objective of ‘Made in Nepal’ and improving technology in the lubricant business. Furthermore, it represents the partners’ shared commitment to sustainable growth, renewable energy, and ethical business practices.

This historic collaboration ushers in an exciting new chapter of collaboration that will propel Nepal’s progress and prosperity.

The collaboration between Indian Oil subsidiary (IOML) and Golchha Group would pave the path for a brighter future in Nepal for future generations.