New Delhi: Valvoline Cummins Ltd announced its entry in the 7,000 kl-a-year (or Rs 40 crore-a-year) engine oil market with the launch of TC Genuine oil, targeted at heavy commercial vehicles. Speaking to The Financial Express, Mr Naveen Gupta, chief executive, Valvoline Cummins Ltd said that the company would consider buying out a lube blending plant, as the market is growing at a fast pace.``We expect the TC Genuine offering to contribute around Rs 7 crore in the fiscal 2001-02,'' says Mr Gupta. ``The product is targeted at heavy-duty vehicles (HCVs), especially the Rs 30-crore Telco segment.'' Valvoline Cummins strategy to target Telco segment is critical as Telco vehicles account for 60 per cent of overall HCVs. The product is being launched in four pack sizes: one-litre, 16l, 50l, and 210l, priced at Rs 110, Rs 1,600, Rs 4900, and Rs 13,860 respectively.
The TC oil market is estimated to be growing at a rate of 50 per cent a year and might touch Rs 60 crore in the year 2002. Castrol and Tata BP account for 50 per cent of the marketshare, followed by other public sector oil companies.
Aiming at a leadership position in the next couple of years, Valvoline Cummins is expected to leverage Cummins' extensive network in India. To begin with, TC Genuine oil is recommended for all B-series engines manufactured by Tata Cummins. Secondly, besides existing channels of distribution, TC Genuine will also be marketed through Cummins Auto Service Ltd - the subsidiary was floated three months ago.
Cummins Auto Service is in the process of setting up ten service centres across major highways. It will also enhance its network of retail outlets from 50 to 200 across major metros and highways.
Valvoline Cummins will also tap Telco's network of 350 dealers - already, 50 top dealers have have shortlisted for the first year. Besides this, Valvoline Cummins' network includes 300 distributors who cater to around 10,000 retail outlets. Beginning with Delhi, Valvoline Cummins will kick off its roadshow to Bangalore, Mumbai, and Calcutta. The company plans to have increased interactions with its dealers and fleet operators, said Mr Gupta. ``We are expecting a turnover of Rs 90 crore in the fiscal 2000-01 up from Rs 67 crore in 1999-00,'' he added.
Earlier, during press conference Mr William F Dempsey, senior vice-president and managing director, Valvoline International said that Valvoline would continue to introduce international brands, following the roll out of Synpower range of synthetic lubes for passenger cars, Eagle One car care products, 4T and 2T for two-wheelers and now TC Genuine oil for HCVs.
Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.
