Indian government-run Hindustan Petroleum Corp. Ltd.s lube sales jumped approximately 9 percent in the fiscal year, thanks to its focus on the bazaar segment and strong brand equity in the industrial segment. The firm said it is Indias best-performing lube marketer.
HPCLs lubricant sales totaled 583,000 metric tons in the fiscal year ended March 31, 2017, up from 536,000 tons the year before.
A spokesman told Lube Report Asia that HPCLs bazaar segment growth was fueled by a strong network of channel partners. The company sells its HP-branded lubricants through a network of 213 lube distributors and 14,412 retail outlets across the country. It also has tie-ups with the Indian Navy and major original equipment manufacturers including John Deere, Bajaj Auto, Komatsu, SKF and Bosch.
HPCL continued to be the [top] lube marketer in the country for the fourth consecutive year and further strengthened its position in the lubricant business by recording a market share gain of 3 percent during 2016-17 to reach 44 percent in the public sector undertakings category, the company said in a June 2 earnings statement.
HPCLs competitors in Indias 2.4 million tons finished lubricants market include national oil companies Bharat 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 owns and operates two major coastal refineries – one in Mumbai and the other in Visakhapatnam – and co-operates a joint venture refinery with HMEL in Bathinda. It operates Indias largest base oil refinery, and produces over 300 grades of lubes, specialty oils and greases.
In a presentation to investors and analysts, HPCL said its base stock production also reached a record high of 430,000 tons in the fiscal year. In order to keep pace with the growth and cater to the increasing demand for internal consumption, the production for lube oil base stock was increased during last fiscal year, the spokesman said. Improved efficiency at the refinery has enabled it to operate at its peak capacity.
HPCLs base stock refinery, in Mumbai, accounts for about 40 percent of Indias total production. It makes Group I, II, and III base stocks.