Castrol India chalks out major business diversification plan
Autocar Professional|15th November 2022
India's second-largest lubricant maker will invest Rs 500 crore by FY27 in its existing business and will also explore new business opportunities in the EV ecosystem. Amit Vijay M checks out the new initiatives.
Amit Vijay M
Castrol India chalks out major business diversification plan

As the automotive market recovers and new players enter the growing electric vehicle space, the lube industry faces new challenges in both ICE and electric vehicle (EV) segments. According to industry experts, the lube market is expected to grow at four percent in CY23.

India's lubricants business was valued at $36.46 billion in 2021 and it is expected to reach $48.22 billion by 2027. Passenger cars are expected to represent the fastest growing segment, followed by commercial vehicles and two-wheelers.

Industrial volumes are expected to see good traction as the economy recovers in CY23.

Castrol India's management expects forex pressures and the inflationary environment to continue in the near term. Its focus will be on protecting margins, while catering to its customers.

In line with the same, amid sustained input cost pressure, the lube maker has decreased its EBITDA/EPS estimate by 13 percent each for CY22 and by 13 percent and 12 percent for CY23.

Sandeep Sangwan, Managing Director of Castrol India says the company will continue to invest in its existing core business of oils and lubes and at the same time explore emerging business opportunities in the fast-changing automotive ecosystem.

Excerpts from the interview:

India has seen the highest inflation in the third quarter followed by currency pressures. With more than 40-50 percent of your operating expenses driven by imports, how are you balancing inflationary and forex pressures to safeguard your margins?

We've seen the highest inflation in Q3. In fact, August, and September have been very heavy and this year we've taken three price increases just to manage our margins and volume balance. We took a price increase in March, the second increase in June and a third price increase in September.

この記事は Autocar Professional の 15th November 2022 版に掲載されています。

7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。

この記事は Autocar Professional の 15th November 2022 版に掲載されています。

7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。

AUTOCAR PROFESSIONALのその他の記事すべて表示
Spain's Fersa Group invests in India-based Delux Bearings
Autocar Professional

Spain's Fersa Group invests in India-based Delux Bearings

Besides theRs100 croreinvestment, the Indian company gets access toadvanced technologies and bearings with arange of applications that willhelpinits global growth strategy, writes Manobhava Baruah.

time-read
2 分  |
15th January 2023
Tata Autocomp to open compact dual-clutch transmission plant
Autocar Professional

Tata Autocomp to open compact dual-clutch transmission plant

Amidthe country’s growing need for personal mobility with easy manoeuvrability, comes the demand for vehicles with automatic transmission. Tata AutoCompisready tomovein writes Shruti Mishra.

time-read
3 分  |
15th January 2023
Pankaj Munjal-backed Hero Motors raises equity from GEF Cap
Autocar Professional

Pankaj Munjal-backed Hero Motors raises equity from GEF Cap

The company willinvest Rs1,500 crore over thenextthree years andit expects 60 percent ofits turnover to come fromelectric vehicle parts. Itaims to becomea Global EV Solutions Company from India

time-read
2 分  |
15th January 2023
New age thermoplastics for next-generation EV batteries
Autocar Professional

New age thermoplastics for next-generation EV batteries

Saudi-based global materials major SABIChas developed cutting edgein fire-resistant polymers and flame-retardant materials that comply with various EV battery safety standards across the world.

time-read
4 分  |
15th January 2023
Switch Mobility to meet growing e-bus demand with fresh capex
Autocar Professional

Switch Mobility to meet growing e-bus demand with fresh capex

Oncourse for abillion-dollar business, the company is exploringa possibility of operating satellite factories across the country to serve different geographies, write ShahkarAbidi and Ketan Thakkar.

time-read
4 分  |
15th January 2023
Kia India to invest Rs 2,000 crore in EVS, to introduce new e-RV in 2025
Autocar Professional

Kia India to invest Rs 2,000 crore in EVS, to introduce new e-RV in 2025

New investmentto drive R&D, infrastructure development and manufacturing capabilities. The company willlocally produce EVsin India with possibility of exports as well, writes Mayank Dhingra.

time-read
2 分  |
15th January 2023
"The government has given enough time for indigenisation but the industry has not taken it seriously"
Autocar Professional

"The government has given enough time for indigenisation but the industry has not taken it seriously"

Amitabh Saran, Founder and CEO, Altigreen, shares his views on problems inthe EV industry and battery localisation solutions with Amit Vijay M.

time-read
3 分  |
15th January 2023
TATA MOTORS SEES ONE INTWO CARS SOLDAS EVS BY 2030
Autocar Professional

TATA MOTORS SEES ONE INTWO CARS SOLDAS EVS BY 2030

The company aims to offer wider choices withnew EVs that may straddle a pricebracket of Rs20to 40lakhinthe coming years, writes Ketan Thakkar.

time-read
2 分  |
15th January 2023
MG Motor India in expansion drive, to invest $100 million
Autocar Professional

MG Motor India in expansion drive, to invest $100 million

The investment willbe usedtoramp up existing production capacity from1.2to1.4-15lakh units per annum atthe automaker's Halol plantin Gujarat, writes Ketan Thakkar.

time-read
2 分  |
15th January 2023
"Technology and its multiplier effect are driving business transformations and customer experiences"
Autocar Professional

"Technology and its multiplier effect are driving business transformations and customer experiences"

Technical Centre India is one of Continental’s largest research and development centres in the world, andasa Centre of Competence’ it also develops customised products for the BRIC countries.

time-read
9 分  |
15th January 2023