Mumbai, Jul 31 (PTI) Hinduja Group company Gulf Oil Lubricants India Ltd today got listed on the BSE and NSE and the company is setting up a Rs 140 crore unit in Chennai as part of its expansion plans.
With the demerger of the lubricants business of Gulf Oil Corporation to Gulf Oil Lubricants India, the latter will manage the standalone lubricant business in India under the 'Gulf Oil' brand. "The idea behind de-merger was to unlock the value of the lubricant business that has reached a size and scale to take up its future growth journey in a more focused manner independently," Gulf Oil International Chairman Sanjay G Hinduja told reporters after listing ceremony at the BSE here. Hinduja said GOLIL would now look at organic and inorganic opportunities to grow.
The company has also finalised its plans to expand business by setting up its second unit at Chennai. As part of our expansion plans, we are going ahead with setting up of 75,000 tonnes per annum capacity unit at Chennai at an estimated cost of Rs 140 crore. The company has already acquired the land and the construction will start by end of this year, Hinduja said, adding that the project will be financed through internal accruals and loans. The company's existing plant at Silvassa has a capacity of 75,000 tonnes per annum.
The company had been growing in double digit and would continue to grow further, he expressed. Hinduja said Gulf Oil Lubricants India 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, he added. With this demerger, we have plans to further expand our current 7 per cent market share in the open market namely the bazaar channel and the B2B related-OEM, industrial and infrastructure segments, GOLIL Managing Director Ravi Chawla said. The company is targeting to increase its presence in the tractor segment with OEM tie-ups and to focus on exports to neighbouring countries in the coming months, Chawla said.