Lubricant-maker Gulf Oil Corporation is hoping to grow two to three times the industry growth. The industry is currently growing at around 6 to 8 per cent.
This optimism is not misplaced, says Ravi Chawla, President (Lubes Business). Gulf Oil saw a 30-40 per cent growth in Punjab and Haryana following its association with King's XI Punjab during the second cricket edition of the Indian Premier League (IPL). In the just-started fourth edition of IPL, Golf Oil has teamed up with the Chennai Super Kings (CSK). Mr. Chawla feels that the tie-up with CSK will help the company strengthen its presence here.
Mr. Chawla estimates the bazaar market in the lubricant space (comprising open market and business-to-business segment) to be around Rs.10,000 crore. At sales around Rs.700 crore, Gulf Oil commands a market share of around 6 per cent. Essentially, Gulf Oil plays in three segments — trucks, cars and motorcycles.
With production facilities at around 12 locations across the globe, Gulf Oil hawks over 400 products in the automotive and industrial lubricant segments.
Out of its total sales, close to 15 per cent goes into industrial and B2B segments. This needs to be pushed up, he says.
Volume-wise, he expects the lubricant industry to grow by 3-4 per cent. “Hence, Gulf Oil has to necessarily grow by taking market share,” he points out. According to Mr. Chawla, Gulf Oil spends around 3 per cent of its sales in brand building.
For corporates, IPL has emerged as powerful vehicle to push their brands into newer markets. According to top officials of India Cements, owning CSK has indeed helped them to not only to break into markets such as Rajasthan, Madhya Pradesh and Gujarat but also realise better price for their products. The success of CSK, according to Rakesh Singh, Marketing Head of India Cements, has helped raise the bar for the sponsorship this IPL season.
