Bharat Petroleum Corporation Ltd (BPCL) will acquire a 40 per cent equity stake in Tiki Tar and Shell India Pvt Ltd (TTSIPL) for Rs 850 million (mn) in cash, the company said on Monday. The purchase is intended to expand BPCL's presence in India's value added bitumen market that supplies highways and airport runways. The acquisition has received approval from the Department of Investment and Public Asset Management and is expected to be completed within 90 days according to a regulatory filing.

Tiki Tar and Shell India was incorporated in October 2019 and manufactures and markets bitumen and bituminous products used in road and runway construction. The transaction will make BPCL a significant minority investor in TTSIPL while Shell India will retain the remaining shareholding. BPCL will finance the deal from internal accruals and the investment is aligned with its strategy to grow higher margin product offerings.

Analysts view the move as part of a wider industry trend where refiners and fuel retailers seek downstream diversification into specialised bitumen grades and related services. The market for value added bitumen has shown steady demand driven by public infrastructure spending and airport upgrades across the country. BPCL's entry is expected to support domestic supply chains and provide technical and commercial synergies with its existing lubricants and bitumen businesses.

The companies did not disclose detailed commercial terms beyond the price and stake but regulatory documents set out the approval timeline and closing conditions. BPCL will continue to report results and any material developments through statutory filings as required by market regulators. The deal follows several recent transactions in the sector as players reposition to capture opportunities in construction and infrastructure material supply.