Hindustan Petroleum Corp. Ltd. reported that its lubricant sales rose 3 percent in fiscal year 2017-2018, thanks to improved performance in the automotive and industrial segments as well as in the bazaar market.
The company, which is owned by Indias central government, recorded sales of more than 600,000 metric tons in the fiscal year ended March 31, up from 583,000 tons a year earlier, according to its latest annual report. HPCL claimed it remained Indias largest lube marketer for the fifth consecutive year.
HPCL said its lubes business continued to focus on the original equipment manufacturer segment and consolidated business at major original equipment manufacturers, including JCB India, Royal Enfield and Bajaj Auto. The company added that it successfully executed a retailer loyalty scheme to create a larger customer base within the bazaar market and enhance brand awareness in the market.
The Mumbai-based companys lubes business supplies lubricants and greases to private and government-owned industrial customers, as well as to a network of 266 lube distributors and 15,062 retail outlets, many of them in the bazaar market.
HPCL, which entered Myanmars lubricant market in 2017, said sales efforts were bolstered by product launches in the important Yangon and Mandalay markets. It said it is now exploring lubricants business opportunities elsewhere in Asia, the Middle East and Africa with an aim to become a global lubricant player.
The company has set up a subsidiary, HPCL Middle East FZCO, in the United Arab Emirates that will serve all of the Middle East and Africa. A detailed market entry strategy has been worked out, and a concrete business plan is being developed for these countries, it noted.
HPCL, the operator of Indias largest lube refinery, also said its base stock production rose 2 percent to a record high of about 439,000 tons in 2017-2018.
The company operates two major coastal refineries, one in Mumbai and the other in Visakhapatnam. HPCLs base stock plant in Mumbai makes API Group I, II and III base stocks and accounts for about 40 percent of Indias total production.