New Delhi: State-run Hindustan Petroleum Corporation Ltd (HPCL) on Tuesday clarified that its recently reported tie-up with Castrol India is at an early, exploratory stage and does not have any material impact on its operations or financials.
Responding to a query from stock exchanges on a media report, HPCL said it has signed a non-binding memorandum of understanding (MoU) with Castrol India to explore the development of a re-refined base oil ecosystem in India. The MoU only provides a framework for discussions on potential areas of collaboration and does not translate into any immediate business commitment, the company said.
The clarification follows a news article suggesting a partnership between HPCL and Castrol to jointly develop the re-refined base oil segment, a space seen as strategically important amid rising focus on sustainability and circular economy practices in the lubricants industry.
HPCL told the exchanges that the development does not affect the company’s operational or financial parameters at this stage and that there is no information which may have a bearing on the movement of its shares. The company also said the news item does not relate to any regulatory or legal proceedings and has no material implications.
“The increase or movement in the share price is purely market-driven,” HPCL said, distancing itself from any speculation linking stock movement to the reported MoU.
Re-refined base oils are produced from used lubricating oils through advanced reprocessing techniques and are increasingly gaining traction as refiners and lubricant makers look to reduce carbon footprints and dependence on virgin base oils.
HPCL’s clarification comes at a time when oil marketing companies are stepping up efforts to align with sustainability goals, though the company emphasised that the current MoU with Castrol is non-binding and exploratory in nature