MRPL and Ashok Leyland Group Incorporate JV Company-Shareholders Agreement Signed

March 20, 2008

MRPL, a subsidiary of India's most valuable company Oil and Natural Gas Corporation (ONGC) and the Ashok Leyland Group have incorporated a Joint Venture Company "Mangalam Retail Services Limited" for creating commercial complexes focussed on the highway-trucking segment.

Shri R Rajamani, Managing Director, MRPL, exchanging the JV agreement with Shri V R Pappu, Executive Director, ALPS. Shri R S Sharma, ONGC Group Chairman, Shri L K Gupta, Director(Finance), MRPL and other senior executives of MRPL and ALPS look on.

The joint venture company shall have equity participation of MRPL and Ashok Leyland Projects Services Limited (ALPS). The Shareholders agreement was signed today at New Delhi by Shri R Rajamani, Managing Director, MRPL and Shri V R Pappu, Executive Director, ALPS.

Also present on the occasion were Shri R S Sharma, Chairman and Managing Director, ONGC and Shri L K Gupta, Director (Finance) of MRPL.

The primary purpose of the JV shall be to set up complexes comprising of Retail Outlets for distribution of petroleum products and lubricants and servicing facilities for trucks/buses/commercial vehicles.

Other facilities like bulk lube dispensing and sale of spare parts, dormitories, rest rooms, fast food centres, shopping centres, ATM booths, extension counters etc shall also be included.

The initial paid up equity of the JV Company shall be Rs 50 crore to be subsequently increased to Rs 100 crore.