Hindustan Petroleum Corp. Ltd. reported that its lubricant sales edged up 0.7% in fiscal year 2019-2020, as it makes a push to access international markets and export more products.
The company, which is owned by India’s central government, posted sales of 650,000 metric tons for the fiscal year ending March 31, up from 646,000 tons a year earlier, according to its latest annual report. HPCL claimed it remained India’s largest lube marketer for the fifth consecutive year.
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The company said it exported 16,800 tons of lubricants to 10 overseas markets, a record export volume for the company. HPCL claims this makes it the largest exporter of lubricants from India amongst public sector undertakings, also known as state-owned enterprises. ”Efforts are on to access international markets and to tap export potential for free trade products and lubricants,” HPCL stated in its annual report.
During the fiscal year, the company said it continued to focus on the original equipment manufacturer sector, including renewing partnerships with OEMs. To meet the requirement of specific lubricants and other products for Bharat Stage VI automobile emissions standards- compliant engines, HPCL launched a wide range of lubricants and specialty fluids during the fiscal year. Implemented in April, the standard brings India roughly on par with European Union emissions regulations. It also significantly raised the quality of lubricants that will be required in new cars, trucks and motorcycles.
HPCL estimated India’s lubricants demand in 2019 at 2.5 million tons, with process oils contributing one third of the demand.
The company operates six lubricant blending plants. HPCL said it continues to improve operational efficiencies at the plants through infrastructure improvements and automation, among other approaches.
The Mumbai-based company’s lubes business supplies lubricants and greases to private and government-owned industrial customers, as well as to a network of 260 lube distributors and 16,476 retail outlets, many of them in the bazaar market. To create better brand
awareness and brand recall of its lubricants in the bazaar market, HPCL said it implemented several retailer loyalty schemes during the fiscal year. The company noted it launched a unified payment app to facilitate purchase of its lubricants and other petroleum products.
HPCL, the operator of India’s largest base oil refinery, also said its base stock production reached a record high of 478,000 tons in 2019-2020, up 1%. HPCL’s base stock plant in Mumbai – owned jointly with Oil and Natural Gas, which has a 51.1% controlling stake –makes API Groups I, II and III base stocks.