Page 146 - CW E-Magazine (28-1-2025)

Pharmaceuticals Hydrocarbons

IMPROPER CONDUCT TRENDS
CCI fi nes Goldman Sachs for failure to notify investment Petroleum imports up 7.1% in April-Dec FY25; ethanol

in Biocon Biologics blending hits 18.2%

The Competition Commission of granted Goldman Sachs ‘Reserved  The Access Rights allowed direct India’s petroleum product (POL) Production and refi ning trends refl ecting a 3.4% increase over the same
India (CCI) has imposed a Rs. 40-lakh Matter Rights, Information Rights, and engagement with Biocon’s premises imports recorded a 7.1% year-on-year Domestic crude oil and condensate period in FY24. December alone saw a
penalty on Goldman Sachs (India) Alter- Access Rights’, which were beyond and personnel, indicating deeper in- increase during April-December 2024- production reached 2.5-mt in December 2.1% rise, with consumption at 20.7-mt.
native Investment Management Pvt. those available to ordinary sharehol- volvement than a passive investment. 25, driven by higher imports of lique- 2024, a 0.6% increase over the same Diesel consumption grew by 2.2%,
Ltd. (GS AIMPL) for failing to notify ders. These rights, including access to  The investment structure gave fi ed petroleum gas (LPG) and petcoke, period last year. Oil India Ltd. (OIL) motor spirit by 8.0%, aviation turbine
its investment in Biocon Biologics Ltd. board meeting minutes and the ability Goldman Sachs the option to con- according to data from the Petroleum produced 0.3-mt, ONGC contributed fuel by 9.8%, and LPG by 6.7%. Natu-
under the Competition Act, 2002. to infl uence strategic decisions, raised vert OCDs into equity shares, show- Planning and Analysis Cell (PPAC). 1.6-mt, and production from private ral gas consumption in December 2024
concerns that the investment was not ing an intent to remain invested for a December 2024 saw a 6.3% rise in POL and joint ventures was 0.6-mt. increased by 7.1% to 6,048-mn standard
The regulator found that Goldman purely fi nancial but strategic in nature. longer period, rather than benefi ting imports compared to the same month cubic metres (mmscm), with cumulative
Sachs’ acquisition of optionally con- from short-term price movements. the previous year. India’s refi neries processed 23.9-mt consumption for the fi nancial year up
vertible debentures (OCDs) in Biocon, Goldman Sachs argued that the trans- of crude oil in December 2024, up 5.2% 11.6% at 55,496-mmscm. LNG imports
which would have translated to a 3.81 action fell under Item 1 of Schedule 1 of While the maximum penalty under Crude oil imports during the nine- from December 2023. Of this, 16.4-mt rose sharply by 18.2% in December and
percent stake in the company on a fully the CCI Combination Regulations, 2011, Section 43A of the Competition Act month period grew by 3.2%, with was processed by public sector under- 24.1% for the April-December period.
diluted basis, should have been reported which exempts minority acquisitions could have been 1 percent of the total December showing a marginal 1.0% takings (PSUs) and joint ventures,
as a notifi able transaction. from mandatory notifi cation if they do not turnover or assets of the combination, increase year-on-year. The net import while private refi ners handled 7.5-mt. Ethanol blending at record high
grant control or material infl uence. The the CCI imposed a fi ne of Rs. 40-lakhs, bill for oil and gas in December 2024 Indigenous crude oil accounted for 2.1-mt Ethanol blending in petrol reached a
Undisclosed transaction fi rm maintained that the investment was considering the circumstances and stood at $10.4-bn, slightly higher than of the total, while imported crude oil record 18.2% in December 2024, with a
Goldman Sachs had entered into a solely for fi nancial returns and aligned Goldman Sachs’ conduct during pro- $10.3-bn in December 2023. Crude oil processing stood at 21.8-mt. cumulative blending rate of 16.4% for
Securities Subscription Agreement and with its ordinary course of business. ceedings. imports accounted for $10.7-bn of the November and December 2024. This
a Shareholders Agreement (SHA) with total, while LNG imports were valued Consumption trends marks the highest ethanol blending rate
Biocon on November 7, 2020, closing However, the CCI rejected these According to industry observers, at $1.2-bn, and petroleum product Petroleum product consumption for achieved to date, in line with the govern-
the deal by December 9, 2020. The in- claims, stating that: the ruling sends a strong signal to pri- exports brought in $3.6-bn. April-December 2024 was 178.5-mt, ment’s sustainable fuel objectives.
vestment, however, was made without  The Minutes Right provided Gold- vate equity fi rms, venture capitalists,
seeking CCI approval, a violation of man Sachs access to confi dential and institutional investors, emphasis- HPCL subsidiary commissions LNG terminal in Chhara,
Section 6(2) of the Competition Act, 2002. and commercially sensitive infor- ing the need for strict compliance with
mation, raising concerns about stra- competition laws when structuring Gujarat
According to CCI, the investment tegic infl uence. minority investments. Hindustan Petroleum Corporation Natural gas is stored in two full
Granules India appoints Rajesh Kapoor as Global Ltd. (HPCL) has announced that its containment LNG storage tanks loca-
ted above ground, built by IHI Cor-
wholly owned subsidiary, HPCL LNG
Head of Quality Ltd., has successfully commissioned its poration. With a capacity of 200,000
cubic meters each, the tanks are said
new LNG regasifi cation and storage
terminal at Chhara, Gujarat. The termi- to be the largest of its kind in India.
Granules India has announced that Pharma, Jubilant, and Wockhardt. Manufacturing, Regulatory Affairs, nal received its fi rst LNG cargo via the A facility for loading LNG into tank
Dr. Rajesh Kapoor has been appointed Dr. Kapoor has a distinguished academic and R&D. His achievements include vessel Maran Gas Coronis on January 6. tanker loading, regasifi cation, and sup- trucks for transporting it to small LNG
as Global Head of Quality of the com- background, with a Ph.D. in Biochemis- implementing compliance programs The cargo was transported to onshore ply of regasifi ed LNG to the gas grid. stations is also being constructed at the
pany, effective from January 9, 2025. try from the University of Lancaster, aligned with cGXP standards, oversee- LNG tanks six days later, on January 12. terminal.
England, a B.S. in Biochemistry from ing third-party vendors, and managing HPCL LNG Ltd. will operate the
Dr. Kapoor joined Granules Pharma the University of Essex, and an MBA regulatory submissions while hosting The facility, built with an invest- terminal on a tolling model and has This comes on the heels of another
ceuticals Inc., a wholly owned foreign from Suffolk University, Boston. His successful inspections by global agen- ment of Rs. 4,750-crors, has a capacity opened it to third-party users through LNG development in Gujarat in late
subsidiary of the company in 2022 as expertise spans quality operations (QA/ cies such as FDA and MHRA. of 5-mmtpa (million metric tonnes per long-term capacity booking contracts December when Nebula Energy’s
Head of Quality for North America. QC), technology transfer, validation, annum), and expandable to 10-mtpa. and spot cargo agreements via master AG&P signed a heads of agreement
He has over 35 years of experience and GAP analysis. He has successfully Additionally, his experience en- Located in the Gir-Somnath District, regasifi cation agreement. The terminal (HOA) with Swan Energy Ltd. (SEL)
across leading organisations such as managed quality operations for contract compasses audits across commercial the terminal is equipped with facilities is set to begin commercial operations to form an LNG logistics venture in
P&G, Becton Dickinson, Bayer, Regene- manufacturing, fi nished products, and manufacturing, clinical trials, and CRO for LNG receipt through ocean tankers, shortly, following HPCL’s delivery of India and acquired a stake in the 10-mtpa
ron, Wyeth, Takeda, Genzyme, Sun APIs, collaborating effectively with operations. marine unloading, storage, LNG road its fi rst cargo. Swan LNG regasification terminal.

146 Chemical Weekly January 28, 2025 Chemical Weekly January 28, 2025 147

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