Gulf Oil looks to raise share in domestic lubricants market

Helped by a higher-than-industry growth thanks to its multi-pronged strategy, Gulf Oil Lubricants is eyeing the number 2 position among private players in the domestic lubricants market.

The Hinduja Group company is currently in the third position – after Castrol and Shell – in terms of market share, among private and multinational players. “Our aspiration is to increase our market share and position. We have become joint number 2 player with Shell in terms of volumes. Our next goal is to become a clear number 2 player,” informed Mr. Ravi Chawla, Managing Director, Gulf Oil Lubricants India, while launching the company’s new Rs. 200-crore plant at Ennore in Chennai.

The new plant, which will be its second unit, along with the expansion of its distribution network, is expected to help the company acquire more business by way of OEM tie-ups in the southern and western markets. The new plant, which also houses an R&D centre comprising five labs, will have a production capacity of 50,000 kilo litres per annum. Presently, public sector oil companies command a market share of 35-40 per cent. Gulf Oil has only half of the volume of Castrol, which has a significant position in the personal mobility segment.

Gulf Oil is also hopeful of touching double-digit market share with the favourable growth outlook. The company has an about 6 per cent share in the automotive and industrial oil segment. In the bazaar market (which includes spare parts stores, exclusive lubricant stores and independent workshops) and in garages, it has a close to 7 per cent share.

Mr. Chawla said Gulf Oil’s segment-wise approach, differentiated product offering and innovative marketing campaigns, among others, have been helping it record higher growth than its peers.