Valvoline International Inc of the United States has entered into a joint venture with Cummins Diesel Sales and Service (India) Ltd, subsidiary of Cummins India Ltd, to blend and market lube oils in the country.
The 50:50 venture, Valvoline Cummins, will also market a range of car-care products and rust preventives.
Valvoline Cummins aims to achieve a five per cent market share in the one-million tonne industrial and automotive lube market in five years.
The company intends to blend and market only 1,000 tonne of lube oil in 1998-99. Of this, 300 tonne will be specially blended for Cummins diesel engines.
The rest will be sold in the retail market.
Jack Gordon, senior vice-president and managing director of Valvoline, told newspersons that the $1.1-billion company is spreading its wings throughout the world and is planning similar ventures in five-six other countries.
On the Indian operation, he said, it is a great handshake with Cummins. Valvoline will gain from the extensive distribution network of Cummins across the country.
Valvoline is the oldest registered lube oils trademark in the US. It has presence in over 120 countries.
According to R M Sodhi, chief of operations, Valvoline Cummins, the company
has already started marketing and blending lubes in the country.
At present, the company has hired a blending plant with an installed capacity of 2,400 tonne per annum in New Mumbai
The oil will be marketed through Cummins dealer network.
The latter has 96 dealers in 25 places.
Cummins is the largest diesel engine manufacturer in the range of 60-2000 hp and powering a variety of equipments including generators, mining and construction equipments, drilling rigs, marine applications and locomotives.
