Indian lubes growth "not huge" predicts Castrol
Castrol is well prepared for growth in the Indian lubes market although the effect will not be "huge" according to its COO.
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Ravi Kirpalani Image: Castrol India |
In an interview with India's Economic Times, Castrol India COO Ravi Kirpalani gave his views on the company and the Indian lubes market. He stated that there will be "an explosion in personal mobility" over the next five years, predicting 50 million new cars and motorcycles are likely to be sold across the country.
Although this huge volume will be good for the lubes market generally, and Castrol in particular, Kirpalani explained that much of the demand will be for higher performance lubricants with longer drain intervals. In his view this means overall volume growth will be restricted to around 3-4%.
However, he expressed his confidence in the growth potential for the Indian market, with Castrol looking to hold on to its 20% volume share and improve on its market value. He also confirmed that the 2.7% royalty paid to Castrol India's parent company would remain unchanged.
