22 Jun 2026
Apar Industries Ltd has announced that its wholly owned subsidiary, Apar Industries Middle East Limited, has entered into a base oil supply agreement with Saudi Aramco Base Oil Company (Luberef). The agreement will ensure a steady supply of base oils for the production of transformer oils and other specialty oils at the LubeHUB lubricants value park in Yanbu, Saudi Arabia.
Apar Industries Ltd has announced that its wholly owned subsidiary, Apar Industries Middle East Limited, has entered into a base oil supply agreement with Saudi Aramco Base Oil Company (Luberef). The agreement will ensure a steady supply of base oils for the production of transformer oils and other specialty oils at the LubeHUB lubricants value park in Yanbu, Saudi Arabia.
Under the partnership, Apar's Saudi operations will receive base oil feedstock directly from Luberef, enabling local manufacturing of specialty oils for regional markets. The company said the agreement supports its strategy to strengthen its manufacturing footprint in the Middle East while accelerating growth in its specialty oils business.
The latest agreement builds on a Memorandum of Understanding (MoU) signed by Apar and Luberef in May 2022, under which both companies agreed to evaluate the feasibility of establishing a transformer oil and white oil manufacturing facility at LubeHUB. The proposed project was intended to support Saudi Arabia's localisation initiatives for specialty lubricant products. However, Apar has not confirmed whether the newly signed supply agreement is linked to the commissioning of the proposed plant.
LubeHUB, developed by Luberef adjacent to its Yanbu base oil refinery, is designed as a dedicated lubricants value park that provides manufacturers with direct pipeline access to base oils and related feedstocks. Luberef is majority-owned by Saudi Aramco, with Jadwa Industrial Investment Co. holding a minority stake.
Apar Industries also reported strong financial performance for the financial year ended 31 March 2026, recording its highest-ever consolidated revenue of INR 22,902 crore (USD 2.43 billion), representing a 23.3% year-on-year increase. Consolidated net profit rose 19% to INR 977 crore (USD 103.66 million).
To support future growth, the company plans to invest approximately INR 2,200 crore (USD 233.4 million) over the next 18 months. Of this, around INR 1,500 crore (USD 159.2 million) will be allocated to new capacity expansion, primarily across its conductor and cable manufacturing businesses.
Apar Industries is led by Kushal Desai, who serves as Chairman and Managing Director.
The detailed article is published by https://www.saudigulfprojects.com/ can be accessed from https://www.saudigulfprojects.com/2026/06/luberef-signs-base-oil-supply-agreement-with-indias-apar-industries/
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