Essar Oil Ltd. (500134.BY) Tuesday said it has raised the capacity of its lone refinery, at Vadinar in the western Indian state of Gujarat, by 11% to 400,000 barrels a day.

The Mumbai-based company said the expanded capacity will allow it process heavier crude, which will help it improve refining margins.

Essar Oil said the share of heavy and ultra-heavy crude in the total crude it processes will go up to 80%.

The company already has long-term crude-sourcing contracts with global suppliers, including several companies in Latin America.

The unit of London-listed Essar Energy PLC (ESSR.LN, ERERY) said it is targeting markets like Australia, New Zealand and north-west Europe, in addition to countries in the Indian subcontinent, to export fuel products.

Write to Rakesh Sharma at rakesh.sharma@dowjones.com