IBP (merged Subsidiary of Indian Oil) - History

History

IBP Co.Limited got merged with its parent company 'Indian Oil Corporation Limited' on 02-05-2007 under the Ministry of Petroleum & Natural Gas, Government of India. The merger ends the history of 98 year old 'IBP Co Limited', the oldest oil company in India.

IBP Co. Limited was born in the then undivided British India as “Indo-Burma Petroleum Company Limited” a joint stock private company on 08-02-1909 at Burma, presently Myanmar.

The developments that followed second world war forced the company change its head quarters to Kolkata permitting the British Government to bombard and destroy its only refinery at Rangoon. Thereafter the company joined hands with the then Indian Oil Company (Later formed as Indian Oil Corporation Limited after merger with Indian Refineries Company Limited) and carried out business in petroleum products at Mumbai and Kolkata.

Though it was initially taken over by IOC in 1970, it got separated and formed as a public sector company in 1974 under the Ministry of Petroleum and Natural Gas, Government of India. By this time all the foreign private oil businesses were nationalized and made public sector companies. The Indo Burma Petroleum Company Limited changed its name to IBP Co. Limited in 1983. During 2002, it was once again acquired by the IOC and became one if its group companies.

Though predominantly an oil company, IBP diversified its activities in to engineering and chemicals. The venture in to explosives by the chemical division was, based on a suggestion from the Govt of India when the country faced acute shortage of explosives for mining industry following an accident and strikes at the only major supplier viz IEL in India in 60’s. As the country had to import huge quantities of explosives to meet consumption needs for over six months, severe difficulties were faced in storage, handling and transportation to mining areas. Finally, the Chary committee set up for the purpose strongly recommended a company to be set up in public sector for manufacture of explosives. IBP, waiting for a diversification in to chemicals, readily grabbed the opportunity and commenced its business in manufacture and marketing of industrial explosives.

The IBP’s first packaged slurry explosive manufacturing plant was set up in Korba (then in MP now in Chattisgarh) in the year 1976 under the collaboration from Ireco Inc. USA. The unit commenced its commercial production in August 1977. Thereafter the chemical division has diversified its business in to a unique technology ‘the bulk delivered slurry explosives’ with the first ever plant of its kind set up in India at Kudremukh with a capacity of 5000 Tons per annum in 1980. The first ever supply of site-mixed bulk slurry explosives took place on 20-12-1980 in a blast using 63 tons of this product. Over the past 25 years, by 20th Dec 2005 it has completed supply of 64,695 MT of SMS explosives to Kudremukh Iron Ore Project.

For IBP, the journey in bulk explosives commenced at Kudremukh continued a long way with new plants set up in both coal and metal mining sectors. The second plant came up at Singrauli (MP) in the year 1983 followed by Block-II Dhanbad (Jharkhand), Ramagundam (AP), Rampur Agucha (Rajasthan), Kusmunda (Chattisgarh) etc. In terms of volume, the production of bulk explosives reached a peak level of 55000 MT, followed by 25000 MT of packaged explosives.