BPCL sale of lubes up 6.3%

Bharat Petroleum Corporation (BPCL) has clocked a 6.3 per cent rise in lubes sales between April 2004 and February 2005, higher than the industry growth of 1.9 per cent.

Indian Oil Corporation, the country's largest lube marketer, acheived a 4.1 per cent growth while Hindustan Petroleum Corporation (HPCL) recorded a 0.8 per cent growth in the period.

Keshav V Shenoy, deputy general manager (lubricants)- west, BPCL, said the company's growth in the lubes segment has been achieved due to innovative marketing by "focusing on several channels to sell our products".

At present, BPCL sells 125 thousand tonne (TMT) and aims to increase its sales volume to 250 TMT within the next two years.

The corporation has recently launched the country's first lubricant dispensing machine at its fuel bunks. "The lube dispensing machine offers lubricants at the actual cost "" lower than that offered as a packed commodity," Shenoy pointed out.

Meanwheil, BPCL is in talks with automobile majors for setting up service stations.

"We are talking to automobile manufacturers such as Tata Motors, Hyundai to set up service stations at our retail outlets. These service stations will not only offer lube change for the new generation vehicles but will also offer genuine parts to the customers", Shenoy said.

"With Tata Motors, it will be servicing bus and trucks along the highways. These service stations will dot the highways at our retail outlets," he added.

BPCL has already tied up with Hero Honda Motors for genuine oil for the 4-stroke engines for two wheelers. During 2003-04, the corporaiton developed 15 new products and 12 original equipment manufacturers' approval were obtained.

"We want to get out of the death trap of commoditisation. We want to carve a niche in the market and offer best automotive care through our retail outlets. For this we are looking at these service stations. These will be less taxing on consumers pockets," Shenoy said.

Meanwhile, BPCL is busy setting up a lube oil base plant adjoining its Mumbai refinery at a cost of Rs 370 crore. It currently buys lube base from IOC and HPCL to blend its lubricants. The lube base oil plant will have an inital capacity of 180 TMT which will be scaled up to 220 TMT.

Shenoy pointed out that the state-of-the-art lube base oil refinery will produce Group II specification oils which will help "blend lubes to produce best quality lubes."

Although the proposed base oil plant is for captive consumption, BPCL will be in a position to sell the excess capacity to other lubricant manufacturers operating in the country.