Exports Buoy Bharats Sales


Exports Buoy Bharats Sales

Indian national oil company Bharat Petroleum Corp. Ltd.s lube sales rose 9.2 percent in fiscal year 2017-2018, thanks to retail network expansion and growth in exports.

BPCLs lubricant sales totaled 320,000 metric tons for the 12 months ended March 31, up from 293,000 tons a year earlier.

Photo: Aleksandr Kurganov/Shutterstock

A Bharat Petroleum gas station in Goa, India. Bharat’s lube sales rose 9.2 percent in fiscal year 2017-2018, thanks to retail network expansion and growth in exports.

The strong performance was driven by retail network expansion and demand from original equipment manufacturers, the seller of Mak-branded lubricants said in a regulatory filing last month.

Network management and expansion ensured that the reseller channel grew by 4.5 percent in fiscal year 2017-2018, BPCL said. The Mumbai-based companys retail channel consists of more than 14,000 fuel stations, while the bazaar channel has more than 700 distributors who supply retailers and mechanics across the country.

BPCL said value-added services to customers was a key focus area in the retail and bazaar channels, while the company established its quick oil change corner for two- and four-wheelers.

Direct sales to OEMs like Hero, TVS, Munjal Showa, Marico, Elgi Equipment and Tata Motors increased, BPCL stated, adding that it introduced several new products for that segment.

The company said its lubricants market share rose to 23.2 percent in 2017-2018, compared to 21.5 percent a year earlier.

BPCLs competitors in the finished lubricants market include national oil companies Hindustan Petroleum Corp. Ltd. and Indian Oil Corp. Ltd., as well as private players such as BPs Castrol India Ltd., Tide Water Oil Co. and Gulf Oil Lubricants India Ltd.

The company said that revenue from lubricant export sales grew 8.9 percent and that it strengthened its presence in South Asia while expanding into Bahrain, Kuwait, Oman, Tanzania, Rwanda and Burundi.

The state-run oil company, which operates four refineries, said its base stock production rose about 3 percent year-on-year to 262,000 tons. It produces API Group II base oil at its Mumbai refinery.

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