Gulf Oil to explore opportunities in electric vehicles
The Board of Directors of Gulf Oil Lubricants India Ltd. has approved an amendment to its Memorandum of Association that will enable the company to explore and pursue business opportunities in the areas of e-mobility and the electric vehicles (EV) value chain, including EV batteries, EV chargers and charging-related infrastructure, electric vehicles, software-as-a-service (SaaS) and mobility-as-a-service (MaaS) related to electric vehicles.
The action is subject to shareholder approval at its upcoming 13th Annual General meeting.
While continuing to pursue additional market share in the still growing lubricants market in India, Gulf Oil also aims to take part in these emerging e-mobility opportunities within India and its parent’s global initiatives in these areas, the company said.
Gulf Oil Lubricants India Limited is part of Hinduja Group and is an established player in the Indian lubricants market. It markets a wide range of automotive and industrial lubricants, greases, 2-wheeler batteries, etc. The Gulf brand is present in more than 100 countries across five continents. Gulf Oil International Group’s core business is manufacturing and marketing an extensive range of over 400 lubricants and associated products for all market segments.
During the quarter ending June 30, 2021, Gulf Oil Lubricants India posted net revenues of INR417.37 crores (USD56.4 million), up 73%, and profit after taxes of INR30.35 crores (USD4.1 million), up 77%, compared to the same period a year ago.
While the quarter was impacted by India’s second wave of Covid-19, resulting in closures of retail markets in various states, especially in April and May, the impact was not as severe as the same period last year which was marked by a nationwide lockdown in the midst of the first wave. This time, manufacturing and infrastructure activities continued either partially or in full. This helped the company generate substantial volumes in the business-to-business (B2B) segment, while trying to fulfil retail demands wherever retail markets and workshops were allowed to remain open.
Another continuing impact of Covid-19 on financials has been rising input costs and margin management which remain key focus areas in the short to medium term. The company has taken a series of pricing actions during the last six months.
The second wave of Covid-19 penetrated and affected rural India in a bigger way than that in the first wave of 2020. This resulted in some initial slowdown in business from the rural areas and the agricultural segment. In contrast, during the first wave last year, sales of lubricants to the agricultural sector were very high as farming activities were largely uninterrupted by the pandemic. The company still grew in double digits in the automotive lubricants space, especially showing in the personal mobility and commercial vehicle segments.