Cals Refineries Ltd earlier known as Cals Ltd was incorporated on the July 25, 1984 as a private limited company. Sarvesh Goorha originally promoted the company as a hardware company and now, the company was promoted by the Spice Group, which has undertaken to set up refinery project. In September 22, 1992 the company was converted into a public limited company.
The company is promoted by a group of individuals having well-established businesses in India with a strong global presence in Oil & Gas, Hospitality and Infrastructure. With the energy sector playing a pivotal role in global economies, the company aims to actively participate in their growth in India as well as in international markets.
In the beginning stage, the company was a hardware company. They established the Business Association network in Maharashtra, Gujarat Uttar Pradesh, Punjab, Haryana and Delhi. They entered an agreement with Videsh Sanchar Ltd for marketing and support their GIAS in the year 1997-98. In the latter years the company could not have any operations due to the blockage of funds and the absence of any financial resources.
The company is in the process of setting up a second hand refinery at Haldia in West Bengal. The refinery plant is being imported from Germany. BayernOil sold the 30-year old refinery plant at Ingolstadt in Germany to Lohrmann International. In the 2007, Lohrmann sold it to the Delhi-based Cals Refinery Ltd. The fully functional oil refinery will be dismantled, packed into 3000 containers, shipped thousand of miles to Haldia and put back together again. The company hired UK refinery engineers KBC to upgrade the plant, adding new units so they can also refine lower-quality Arab crude oil.
Spice Energy, the holding company for the project, Cals Refineries, raised $200m through issuing a global depository receipt on the Luxembourg Stock Exchange in November 2007.
The company is in talks with the world's third largest energy company, BP, for a crude supply and product offtake deal. They have signed a land deal with two agencies of the West Bengal government namely Haldia Development Authority (HDA) and West Bengal Industrial Development Corporation (WBIDC) for a Rs 20,000 crore plan for three refineries in the port town of Haldia and the Nayachar river island off Haldia.
The first two phases will entail an investment of Rs 4,000 crore each and a capacity of five mtpa each. Each will require 400 acres, of which the first tranche has been acquired and the second is to be acquired. The final phase with a capacity of ten million tonnes annually and an investment of Rs 12,000 crore is proposed to set up on 800 acres on the PCPIR, which is slated to come up at Nayachar.
The refinery plant will be commissioned at the end of 2010.