The company is actively engaged in localising battery production and transitioning away from toll manufacturing.
04 Sep 2023 | 6683 Views | By Shahkar Abidi
Gulf Oil India, a leading player in the lubricant industry and a subsidiary of the Hinduja Group, has set its sights on robust growth in its battery business. The company has outlined an ambitious plan to achieve a 20% annual expansion, propelling its revenue to Rs 200 crore over the next 4-5 ...
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Gulf Oil India, a leading player in the lubricant industry and a subsidiary of the Hinduja Group, has set its sights on robust growth in its battery business. The company has outlined an ambitious plan to achieve a 20% annual expansion, propelling its revenue to Rs 200 crore over the next 4-5 years, a significant increase from its current revenue of approximately Rs 88 crore. To realise this vision, Gulf Oil India is actively engaged in localising battery production and transitioning away from toll manufacturing.
Having entered the motorcycle battery market approximately 7-8 years ago, Gulf Oil India has successfully diversified its portfolio, signalling its strategic agility and adaptability. Presently, the company boasts an impressive annual sales volume of around 13.5 lakh batteries, positioning itself as a key player with a notable 2–3% share in the replacement market. Notably, Gulf Oil India is among the top five players in the replacement two-wheeler segment, offering technologically advanced valve-regulated lead acid (VRLA) batteries distributed through a vast network of over 12,000 touchpoints across the country.
Ravi Chawla, the Managing Director and CEO of Gulf Oil Lubricants India Ltd., emphasised the company's commitment to localization, stating, "We found that dependence on imports is always there, but we want to localise this." Currently, Gulf Oil India imports batteries from China and Vietnam. Chawla further revealed that the localization process is currently under testing and will be implemented in a phased manner.
Highlighting the growth potential, Chawla expressed the company's aspirations to achieve at least a 20% annual growth rate once they have a localised option in conjunction with imports. He stated, "We are just waiting to see how we can look at the market expansion in the next stage. Once we localise it, we will be in a better position to do that more aggressively."
As Gulf Oil India strategically positions itself for growth in the battery business, industry observers eagerly anticipate the company's localization efforts and the subsequent impact on its market presence and competitiveness.