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Gulf Oil Lubricants bets on strong demand over next 10-15 years

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Gulf Oil Lubricants is a leading lubricant manufacturing and marketing company in India. The company has been growing at 2-3 times the market rate. In an interview with CNBC-TV18, Ravi Chawla, managing director and CEO of Gulf Oil Lubricants, discussed the demand picture and the outlook.

Gulf Oil Lubricants is a leading lubricant manufacturing and marketing company in India. The company has been growing at 2-3 times the market rate. In an interview with CNBC-TV18, Ravi Chawla, managing director and CEO of Gulf Oil Lubricants, discussed the demand picture and the outlook.
He said, “Our core business is the replacement lubricants business, which will continue. We have been growing at 2-3 times the market, so the demand conditions have improved, obviously, there was a retail closure in April, May, but it’s going well now. Lubricant demand will continue to grow for the next 10-15 years.”
On the margin, Chawla said, “Base oil, which is the main ingredient that has hit an all-time high, it started in September of last year and now, it is steady. From December onwards, we took price increases right up to June, so now that price increases are in place, we are confident that we will go back to our margin band, which was around 15-17 percent, that is where we see the next quarter going.”
On the electric vehicle (EV) space, he said, “Globally, we have tied up with a charging company, Indra Renewable Technologies. We are looking at the car charging market. Some tests are on and we are also studying the EV value chain, where we can look at the brand distribution and we do have a lot of sales in the motorcycles, our brand is very strong. So a lot of the areas of the EV value chain, we are looking at where we can employ our strengths and make a play.”
Gulf Oil Lubricants stock has been under pressure for some time now, it is down 16 percent this year and in the last six months, the stock has gone down around 21 percent, and is currently trading at around Rs 606.75 on the NSE.
For the full interview, watch the accompanying video.
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