Media Gulf Oil Plans Second Lubricants unit in South - Business Line
Gulf Oil Plans Second Lubricants unit in South - Business Line
17 Jun 2011
Hyderabad, June 16:
Gulf Oil Corp Ltd, which has a lubricants manufacturing plant at Silvassa, plans to set up a second plantin South India at an investment of Rs 150 crore.
It recently restructured itself by hiving off its explosives division into a subsidiary. It wants to focus on expanding its lubricants division and growing its explosives business by bringing in a strategic partner.
As part of the restructure process, it had also hived off its pharmaceuticals business to Biocon. “Post restructure, we are looking at the next phase of growth with lubricants playing a larger role,” said Mr Subhas Pramanik, Managing Director of Gulf Oil Corporation.
Profiting from co-branding
He told newspersons that “the co-branding of lubricants with Ashok Leyland Ltd, and later with Mahindra & Mahindra had begun to yield good results. We see co-branding as a growth opportunity. The marketing spend of Rs 33 crore for financial year 2011 and our partnership with the IPL cricket teams of Punjab and Chennai had a positive impact on the lubricants business.”
He said that the lubricants business recorded a turnover of Rs 681 crore in FY 2011, up from Rs 564 crore a year ago. “The investments in capacity addition, marketing and partnerships, and co-branded lubricants business will ensure that this division grows by 20-25 per cent this year,” he said.
Referring to the explosives division, now managed through a fully-owned subsidiary — IDL Explosives Ltd, Mr Santhanam Subramanian, Chief Financial officer, said, “We will bring in a strategic partner to expand this division and consolidate its business.”
Last fiscal, the company closed with a consolidated top line of Rs 1,214 crore, and expects to close this year at around Rs 1,500 crore, with the lubricants business as a key volume driver, he said.
The management expects its mining business to turn around this year.
Along with its group company Hinduja Estates, Gulf Oil is set to commence work on its mixed-use Bangalore property replica watches within two months. It will invest Rs 1,350 crore for the development of about 5 million sq ft of mixed-use area.