Gulf Oil Lubricants (GOL) India Limited, a sub organisation of the Hinduja group, which takes part on the production and marketing of industrial and automotive parts, is looking forward to make a venture into the two-wheeler battery segment in India. At present, the company is importing motorcycle batteries and testing them in the Indian conditions through its number of retail outlets in the country. GOL Managing Director, Ravi Chawla said, “We are examining this segment more for synergy of our channel sales.” He also added that the annual size of market in batteries of motorcycles in India is estimated roughly at 5000 crore INR.
GOL is also forward to move a step ahead in the lubricant industry after demerging from Gulf Oil Corporation, this year. It is looking forward to launch a new lubricant, which will be suitable for car segments and two-wheelers. In the current condition car segments and motorcycles account for approximately six and 15 per cent, respectively in the company’s net business in the country. Apart from these aspects, the company is also looking forward to make an impact on the rural market of the country.
At present, the number of retail outlets is currently at 50000. However, the company plans to increase the number of its outlets by 10 to 15 per cent every year. Also, it will look forward to increasing marketing strategies and promotion in the rural market through improved measures of communication. Today, the company’s turnover from the rural market is estimated to be around 10 per cent of the total.
Chawla showed a glimpse of the company’s remarkable strategy for achieving all these targets. He said in a statement that GOL has hit upon a plan costing to 165 crores INR. This includes the company’s plan to expand its unit at Silvassa. Currently, it has a capacity of producing 75000 tonnes annually, which will be soon hiked up to 95000 tonnes on a yearly basis. This expansion plan will take time and will be completed only by January 2015. On the other hand, the company is also looking forward to complete the manufacture of the Chennai unit, which will produce around 50000 tonnes. The Chennai unit is mainly being manufactured to cater to the market in southern India, which has shown an immense head start in the last few years. GOL has emerged as the market leader in the open market sales of commercial vehicle lubricants. The fact that Chennai serves as the hub for automobile industries has also obliged GOL to launch their production unit here.
