The partnership will see a range of motor oils including Repsol Moto for two-wheelers, Repsol Elite for passenger cars, and Repsol Diesel for heavy-duty vehicles.
05 Apr 2016 | 9927 Views | By Takshak Dawda
GP Petroleums, a subsidiary of the Gulf Petrochem Group, today launched Spanish oil company Repaol’s lubricant business in India.
Last year GP Petroleums had entered into a strategic partnership with Repsol to exclusively manufacture and market the Spanish oil major's lubricants in India.
The partnership will see a range ...
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GP Petroleums, a subsidiary of the Gulf Petrochem Group, today launched Spanish oil company Repaol’s lubricant business in India.
Last year GP Petroleums had entered into a strategic partnership with Repsol to exclusively manufacture and market the Spanish oil major's lubricants in India.
The partnership will see a range of motor oils including Repsol Moto for two-wheelers, Repsol Elite for passenger cars, and Repsol Diesel for heavy-duty vehicles. The company is targeting to launch the entire range of lubricants across segments by May 15, 2016.
Commenting at the launch, Thangapandian Srinivasalu, executive director of Gulf Petrochem said, “GP was previously known as SAH in India. Back then IPOL contributed almost 90 percent of th3 volume of company sales. With Repsol, we are targeting a 5 percent market share of an industry which is estimated at a million tonnes by 2020.”
The current target for the company is 2,500 tonnes in FY16-17.
Moreover, the company is also planning to start discussions with OEMs such as Tata Motors, Honda and Maruti Suzuki in India to supply the Repsol range of lubricants. "The fact that Tata Motors and Suzuki are already associated with Repsol in Spain, while Honda is working with Repsol in Indonesia will be quite helpful," added Thangapandian.
Also commenting on the new partnership, Sudhir Goel, managing director, Gulf Petrochem group said,”The Indian lubricant market is intensely Competitive but is one of the few sectors which is on a growth path. Thus, compelling the market to look for new specialised products. This is where repsol, a very well reputed brand fits perfectly. A separate dedicated team and network will service the Repsol brand in India.”
Last year the company had announced plans to set up new plants in Pipavav (Gujarat) and Kosi (Bihar) with an estimated investment of over Rs 100 crore. However, the plans have been currently put on hold as the company has expanded the capacity of its Vasai (near Mumbai) plant. The company has a combined capacity of 80,000 tonnes in its Vasai and Daman plants.
India currently is the world’s third largest lubricant market and accounts for approximately 20 million tonnes per annum. Of this, 58 percent is consumed by the automotive segment. The lubes market is growing at a moderate pace of 2.5 percent but the automotive consumer market is expected to grow at around 6.6 percent.