|ONGC & Mittal Investment Sarl. form OMEL and OMESL|
11 October, 2005
Two agreements were signed between India’s Most Valuable Company, ONGC and Mittal Investment Sarl. – the investment holding arm of Mittal Steel, world’s largest Steel Company, to form ONGC Mittal Energy Ltd. (OMEL) and ONGC Mittal Energy Services (OMESL).
Mr. Subir Raha, Chairman & Managing Director, ONGC, Chairman, ONGC Videsh Ltd. (OVL) and Mangalore Refinery & Petrochemicals Ltd. (MRPL) and Mr. Lakshmi N Mittal, Chairman & CEO, Mittal Group, signed the agreements, signifying the formal launch of both the Joint Ventures within ten weeks of signing of the Memorandum of Understanding (MoU) in New Delhi on July 23, 2005.
Mr. Subir Raha, C&MD of ONGC & Chairman of OVL, and Mr. Lakshmi N Mittal, Chairman & CEO of Mittal Group,signing the agreemnts.
Equity for each of the JVs is USD 50 Million. OVL (in case of OMEL) and ONGC (in case of OMESL) will hold 49.98% (51 % of 98%), and Mittal Investment Sarl will hold 48.02% (49% of 98%). And the balance will be held by SBI Caps.
The chief executives exchanging the documents.
Speaking on the occasion, Mr. L N Mittal appreciated ONGC by calling it a first class organization. You really work like any top class private organization. In my meeting with various political leaders, there was a tremendous appreciation for your organization he added.
Mr. Subir Raha speaking about the Mittal group said that it is a great institution to work with and looked forward to a great future ahead. Congratulating the group for having, Mr. S K Sharma, as the new CEO of OMESL (The CEO of OMEL is expected to join shortly) Mr. Raha added that these JVs will effectively supplement the efforts of the ONGC Group of companies in securing global footprint.
The power of group synergy
By Sanjay Kumar Joshi