Castrol India: speeding ahead

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Mumbai, Aug 8: Strong performance despite soaring costs of inputs and competition in the industry, higher volumes and improved price realisations and pan-India presence of its BikeZone network, a chain of multi-branded 2-wheeler service centres that services all brands, would continue to better the revenue performance for Castrol India.

The company’s revenues surged to Rs 1,114.30 crore in H1CY08 from Rs 982.16 crore clocked in H1CY07 showing a growth of 13.45 %. Its net profit surged by 44.81 % to Rs 155.60 crore vis-à-vis Rs 107.45 crore in the corresponding period in previous year. The company has been able to achieve despite soaring inputs costs (crude oil), and increasing competition.

The automotive segment constitutes 85 % of total revenues while the remaining is contributed by non - automotive division under which the company sells industrial lubricants. Its overall performance in automotive segment saw a strong growth in top line value.

Castrol BikeZone vehicle servicing franchise is a unique business model (continuous source of cashflows) in motorcycle servicing. The Bike Zone network is spread across 96 sites and 18 cities. The company currently has 100 stores Bike Zone network and it plans to expand to 220 by the end of 2008. At over 15% growth, Castrol has two winning brands – Castrol RX Supermax (joint brand with Tata Motors) and Castrol CRB Turb. The company has reported more than 12% rise in its non-automotive segment as it has developed differentiated offers to provide complete solutions for the lubricating requirements of its customers in the core segments viz auto, metals and machinery manufacturing.

It shifted its focused from overall volume to target volumes (product-centric) and hi-tech lubricants to minimise the impact of raw material volatility and is expected to benefit in future from the same.

The company has grown to become the second largest lubricant company in India with a market share of around 22%.Castrol India manufactures and markets a range of automotive and industrial lubricants. It markets its automotive lubricants are under two brands - Castrol and BP.