Gulf Oil may invest Rs 5 crore in Silvassa project

Gulf Oil Corporation is investing Rs 5 crore in an expansion project at its plant in Silvassa. Under the proposed expansion, the company plans to construct 35,000 sqft floor space, install a plastic moulding machine and add the latest technology automatic filling machines.

According to a release here, the expansion will increase the filling capacity of the company by 50 per cent. Civil works for the project has already started and the expansion project will be completed by July 2004.

In view of the improved potential and better margins, the company has decided to focus on the retail sector, the release said. To achieve its retail objective, the company will increase the number of distributors from current 450 to 700 by March 2005 and to 1600 in the next two years.

In order to meet the increased demand from the retail side, which requires products in small pouches, the company will need to increase its existing filling capacity. The current expansion is to meet the above demand, the release said.

V Ramesh Rao, the executive director of Gulf Oil, said, "In spite of stagnant outlook for the lubricant industry, our company has grown by over 10 per cent in volumes, in the last six months. It has been our endeavour to strengthen our distribution network, introduce more products and renew our focus on the retail side of the market. The current expansion project will augment the lubricant filling capacity by around 50 per cent, which will help us to cater to the demands of our distributors and retailers. We plan to complete the project by July 2004."