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Bharat Petroleum Corporation Ltd. (BPCL) will acquire a 40% stake in Tiki Tar and Shell India Private Ltd. (TTSIPL) for INR 85 crore to strengthen its presence in the value-added bitumen segment. The acquisition, approved by the Department of Investment and Public Asset Management (DIPAM), will enable BPCL to offer specialised bitumen products used in highways, airports and urban infrastructure projects. The company expects the partnership to support growing demand for advanced road construction materials driven by India's expanding infrastructure pipeline.
Bharat Petroleum Corporation Ltd. (BPCL) has entered into an agreement to acquire a 40% equity stake in Tiki Tar and Shell India Private Ltd. (TTSIPL) for a cash consideration of INR 85 crore. The acquisition marks BPCL's entry into the value-added bitumen (VAB) segment, strengthening its portfolio of specialised products used in road construction and transport infrastructure. The transaction has received approval from the Department of Investment and Public Asset Management (DIPAM) and is expected to be completed within 90 days.
TTSIPL is a joint venture between Tiki Tar Industries and Shell Gas B.V. and manufactures value-added bitumen products including polymer-modified bitumen, crumb rubber-modified bitumen and bitumen emulsions. These products are widely used in highways, expressways, airport runways, bridges and urban road projects, offering improved durability, resistance to heavy traffic and better performance under varying weather conditions compared with conventional bitumen.
The acquisition aligns with BPCL's strategy of expanding beyond conventional fuel products into higher-value downstream businesses. The company believes the value-added bitumen market offers significant growth opportunities as India continues to invest heavily in highways, logistics corridors, airports and urban infrastructure. The government's continued emphasis on road development under programmes such as Bharatmala and other infrastructure initiatives has increased demand for specialised construction materials designed to improve pavement life and reduce maintenance costs.
Following the transaction, BPCL plans to leverage its nationwide fuel marketing and distribution network to expand the reach of TTSIPL's specialised bitumen products. At the same time, the partnership will allow BPCL to benefit from TTSIPL's manufacturing facilities, product portfolio and technical expertise in value-added bitumen solutions. The collaboration is expected to improve product availability for infrastructure developers, engineering companies and road construction contractors across the country.
According to BPCL, the acquisition represents a strategic investment in a business segment that complements its existing refining and marketing operations. By entering the value-added bitumen market, the company aims to strengthen its participation in India's infrastructure value chain while diversifying its revenue streams beyond traditional petroleum products.
Industry estimates indicate that the demand for specialised bitumen products is expected to increase as more national highways, state roads, airports and urban transport projects adopt advanced construction materials to improve asset quality and lifecycle performance. Value-added bitumen is increasingly being specified for high-traffic roads because of its enhanced strength, flexibility and longer service life.
The acquisition is not classified as a related-party transaction and will be funded through BPCL's internal resources. Upon completion, BPCL will hold a 40% stake in TTSIPL, positioning the company to participate in a growing segment linked to India's long-term infrastructure development plans while expanding its presence in the downstream energy and construction materials market.
Source - PTI
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