Castrol India Scoots Into Service Arena

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Apparently seekingto adapt the quick-lube concept to motorcycles, Castrol India Ltd. this month unveiled the prototype for a chain of service shops for two-wheelers.

At an Aug. 13 ceremony the company commemorated the opening of the first Castrol BikeZone, in the southern city of Bangalore. Officials said they plan to develop 45 more locations in the area over the next six to eight months. Castrol India Managing Director
Naveen Kshatriya said the company will enter franchise agreements with independent workshop owners and entrepreneurs in an effort to establish more and more touch points between the brand and customers.

Castrol will oversee the day-to-day operations at these workshops to see that the brand equity is not diluted, Kshatriya said.

Officials described a model similar to the one that big lubricant marketers have employed in the United States to build chains of quick lubes that serve as sales channels for passenger car motor oils. They said the Castrol name would tell customers that BikeZones offer quality products and services. They added that shops in the chain will offer personalized service, clear menu-driven pricing and complete transparency in all dealings – with no surprises for customers.

This venture marks Castrol Indias first foray into the service business. It should come as no surprise that the company would target motorcycles, since India is the worlds second-largest motorcycle market, with annual sales of 4.1 million units, and Castrol is the leading brand of two-cycle engine oil. Production of two-wheelers, such as motorcycles, scooters and mopeds, accounts for 81 percent of the country’s vehicle manufacturing capacity.

BP owns a 71 percent stake in Castrol India, which is based in Chennai.

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