More than 20 service stations over the island, with two opening in Terre-Rouge and Vacoas by July and ten by the end of the year. This is what Indian Oil Mauritius (IOM) announced at the official opening of its terminal in Mer Rouge last week. Although this activity will represent only 10% of the company?s turnover, IOM is set to promote its local image.

Its entry on the local market has been warmly greeted by prime minister Paul Bérenger, who sees in this business venture yet another sign of the strong ties between India and Mauritius. It also shows that ?foreign investors have regained confidence in the country?s economy?.

The PM pointed out that a new operator in the oil sector was necessary since it has, until now, been ?the field of four big international companies that is to say Shell, Caltex, Esso and Total. In the context of globalisation, the growing competition in the energy sector was inevitable.? Moreover, the country has often been on the verge of a Jet A-1 (plane fuel) shortage since December. The new IOM terminal should allow more petrol stocks (around 20% increased capacity), thus meeting the demand of the growing amount air traffic. IOM is offering oil storage facilities as well as petrol filling stations with an investment of Rs 450 million.

Second in the Asia- Pacific Region

IOM is India's biggest commercial company as regards sales and the second national oil company of the Asia-Pacific region. Mauritius has become Indian Oil's fourth foreign subsidiary after Koweit, Kuala Lupur and Dubayy. Its installation in Mauritius is part of its external development strategy. IOM chief executive, Narasimhachariar Kannan, said that the aim of setting up a subsidiary in Mauritius is not mainly to make profits but is a part of its vision of becoming a powerful multinational.

The Mauritian subsidiary's director general, Madireddy Ramana, is confident that the company will take 20% of the market share over the next five years. It intends to offer the "best deal" to its future customers as it competes with the four other companies.

The next step for IOM could be the creation of a modern laboratory for the testing of oil products. The company will probably benefit from the government?s support in this new challenge. The prime minister explained: ?The samples of imported products have to sent abroad to be tested. This leads to delay in distribution and implies high costs.? Such a laboratory thus looks most welcome?