MI: Currently we see a lot of alternative fuels coming up like CNG, Ethanol, etc. What are your thoughts on these?

RC: CNG, we are seeing certain pockets where it is making an impact like in Delhi, Ahmedabad, etc. It is a question of availability, to be considered as an alternative fuel source.

MI: Apart from Ashok Leyland, which are the other major OEMs that you are partnering with?

RC: Apart from Ashok Leyland, our major contributor, we are also working with many other OEMs. For instance, we have a co-branded product with Mahindra for their passenger cars. We also have a genuine oil with Volvo Penta for gensets and stationary engines. We also have a relationship with L&T Komatsu and recently got an approval from them. Our OEM collaborations are growing well and we are open for new tie-ups. In the CV segment, we have quite a strong portfolio. Our products have been approved by Mahindra Navistar. In addition, we are also working closely with Leyland Deere and AL-Nissan. We also have a co-branded product with MAN.

The Gulf plant in Silvassa

MI: What is the current capacity at your main plant in Silvassa? What is the capacity utilisation there?

RC: At our Silvassa plant, the installed capacity is 75,000 KL per annum for blending. In terms of capacity utilisation, we utilise around 95 per cent of the filling.

MI: Are you planning to invest in any major capacity expansion in the near future?

RC: Yes, we are looking at a plant in the south, with one of the options being Chennai. However, the location is not finalised yet. This upcoming plant will have a capacity similar to our Silvassa facility and will provide the additional capacity we need. Added to that, we will also be setting up a product application centre that will help us to work closely with the OEMs. As the southern region is already a major market for us, the upcoming plant would also help bring down our logistics cost.

MI: How is the response for your non-oil business: filters and batteries?

RC: Filters are closely linked to the lubricants, so using the same channel, we are looking at long drain filters. We would like to focus on a niche high quality market rather than the price-oriented segment. The filters cater exclusively to the aftermarket. In batteries, we have entered the two-wheeler battery segment where we find very good demand. Moreover, we are leveraging on our channels as our distributors can sell the products through existing channels. Though we have launched the batteries only in limited areas, we have received good response. We are looking at the segment as a future growth potential for Gulf Oil.

Courtesy: Motor India, December 2012