MUMBAI, India (July 31, 2014) — Sanjay Hinduja, the Chairman of Gulf Oil International (GOI), strikes the gong to commence Thursday’s trading on the Bombay Stock Exchange (BSE), thereby initiating the listing of GOI’s newly demerged standalone Indian lubricant company, Gulf Oil Lubricants India Ltd (GOLIL).
GOLIL is now listed on India’s premier stock exchanges, the Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE), following the requisite approvals.
The move came because Gulf considered that its lubricant business had reached the size and scale to independently take up its future growth journey in a more focused manner. Gulf is bullish about GOLIL, which will be given the necessary focus and resources to increase its business revenues and market share in India’s lubricant market.
Given the positive outlook for the Indian economy, Gulf Oil is well placed to increase its market share in both the Automotive & Industrial lubricant sectors and GOLIL therefore will aim to deliver enhanced value to all its stakeholders.
Following the demerger of its lubricants business from Gulf Oil International’s Indian subsidiary Gulf Oil Corporation Limited, the new company, Gulf Oil Lubricants India Ltd will manage the standalone Lubricant business in India under the “Gulf” brand. The move came because Gulf considered that its lubricant business had reached the size and scale to independently take up its future growth journey in a more focused manner. GOLIL, which will be a company solely dedicated to lubricants, will be given the necessary focus and resources to increase its business revenues and market share in India’s lubricant market.
Given the positive outlook for the Indian economy, Gulf Oil is well placed to increase its market share in both Automotive and Industrial lubricants.
Addressing the media on this momentous occasion for the company, Sanjay Hinduja, Chairman, Gulf Oil International said, “Gulf Oil Lubricants India Ltd. aims to realise its vision of becoming one of the top three lubricant brands in the industry with expected support from the growing Indian economy. The company will continue to outperform the industry’s growth by enhancing its distribution, investing in the brand and securing more OEM tie-ups.
Furthermore, this is in line with our global vision of being one of the largest independent downstream players in lubricants and speciality chemicals in the world.”
Ravi Chawla, Managing Director, GOLIL added,“ In the past five to six years, our strategies of leveraging our longer drain technological prowess, increasing our distribution reach and innovative brand building initiatives have resulted in volumes, revenues and profits growing multi-fold. The lubricant business has attained CAGR (Compound Annual Growth Rate) growth of about 15 percent in revenues and about 42 percent in profits before taxes over last six years.
The Lubricant business has delivered an EBIDTA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) margin of over 12 percent consistently and the volume growth rates are more than double the industry growth rates during this period, to emerge as one of the fastest growing lubricant majors in India.
“With this demerger we have plans to further expand our current 7 percent market share in the ‘open market’ namely the bazaar channel and in the B2B-related OEM (Original Equipment Manufacturer), Industrial & Infrastructure segments.” Gulf Oil’s operations in India have been built on its core strategies of leveraging technology in its longer drain lubricants, increasing reach and building its brand to increase its market share in focused segments. These operations will continue and, in addition, the company is also targeting to increase its presence in the tractor segment with OEM tie-ups as well as focusing on exports to neighboring countries in the coming months.
The company has also put in place plans to enhance manufacturing capacities at its current blending plant at Silvassa and is also at an advanced stage of setting up a new plant near Chennai. The core values of the Gulf brand are Quality, Endurance and Passion. In India, Gulf Oil has been associated with the Indian Premier League cricket series for several years and currently sponsors the Chennai Super Kings.
Indian Cricket Captain, Mahendra Singh Dhoni, has been Gulf’s Brand Ambassador since 2011 and Gulf has successfully leveraged these associations to communicate the brand & product propositions and create consumer pull across its targeted market segments.
Post demerger, shareholders of Gulf Oil Corporation Limited (GOCL) have been allotted one share in Gulf Oil Lubricants India Limited (GOLIL) for every two shares held in GOCL. Simultaneously, a capital reduction and reorganisation for GOCL has been effected by allotting one new GOCL share for every such two old GOCL shares.
New shares of GOCL have also been issued and already listed on stock exchanges on June 26, 2014. These GOCL and GOLIL shares have been issued / allotted to the
Shareholders of GOCL as on the record date, 5th June 2014. GOCL will continue to focus on its property, infrastructure and mining business.
Gulf Oil International is part of the Hinduja Group and is responsible for the management of the Gulf brand in more than 100 countries across five continents. Gulf Oil International’s core business is manufacturing and marketing an extensive range of more than 400 performance lubricants and associated products, for all market segments.
The company has also expanded into the global marine business. Hong Kong-based Gulf Oil Marine, has been delivering lubricants to ships across more than 1000 ports since 2008.
In December 2012, the company added Houghton International, the global market leader in metal working fluids into its fold, to further increase its presence in the areas of lubricants and specialty chemicals.
Gulf Oil Lubricants India Limited (GOLIL), is the resulting company housing the Lubricants Business of Gulf Oil Corporation Limited post the demerger. Gulf Oil is an established player in the lubricants market in India and markets a wide range of automotive, industrial lubricants and 2-wheeler batteries.