19 November 2019

Interaction-Jayantra Ray, GM, Industrial & OEM, GS Caltex

GS Caltex is ready with its futuristic portfolio to address BS VI emission norms

 

GS Caltex India is a 100 per cent owned subsidiary of GS Caltex, South Korea. The company is currently doing business in high quality premium lubricants manufactured from its own group II plus base oils. The company`s operations are all over India with warehouses at key locations to service distributors and other industrial customers. GS Caltex India has a very impressive range of high quality finished lubricants and supplies to large businesses including major OEMs. In an exclusive interview with CONSTRUCTION OPPORTUNITIES, JAYANTA RAY, GM – INDUSTRIAL & OEM, GS CALTEX INDIA PVT LTD shares about his company’s offerings, emerging trends and the future outlook of the company.

 

 

 

 

The Indian lubricant market is expected to $10.3 billion mark by 2027. How in your view is the growth of the sector poised?

 

As we are all aware, due to recent slowdown in automotive and few other sectors, Indian manufacturing and related industries had a spiraling effect of the same. This has triggered cut down in production even shutting down industry to adjust inventory. Apart from 2019-20 and 2008-09, Indian Automotive and Industrial Manufacturing segment had a shining growth story which has made India 3rd largest lubricant market in the world. On a longer term Lubricants market is poised to grow by 3-5% in India till next 5 year period which makes it quite an attractive proposition as a growing sector.

 

How will the growing infrastructure sector and other strategic initiatives of the central government boost the lubricants market?

 

The economic downturn in Auto including Construction equipment industry seems to be a temporary phenomenon which should not impact the long term government focus in Infra, construction and mining segment. Several announcements made by Central Government to boost the economy recently most significant being  ` 70000 Crore infusion in PSBs which should facilitate liquidity in the market. Government also announced to set up of an inter-ministerial task force for its ambitious ` 1 Lac crore investment push in infra sector in next 5 years. The government also announced that it has approved 100 percent Foreign Direct Investment (FDI) through the automatic route in coal mining, its sale and all its associated infrastructure  which should turn the focus on mining and may see major Global miners to invest in India.

 

What are your offerings and their USP’s to cater to the construction and mining industry. How Green and recyclable are your products.

 

OEMs have been under considerable pressure to offer engines that are more durable, more fuel efficient and produce less emissions than before. new legislative mandates along with exhaust after-treatment system and engine hardware changes are working together to create harsher conditions, in which lubricant is operating and has its effects on overall performance of the oil. to maximize lubrication effectiveness, minimize cost and reduce the risk of application induced failure, the appropriate choice of lubricant is essential and needs to be determined by the nature of the environment, in which it will be used. Different types of lubricants excel at various uses, depending on their precise combination of ingredients  and formulation. the need for lubricant marketers to meet more stringent regulatory standards and challenging specifications is growing. the ongoing shift to higher quality automotive lubricants is driven mainly by the automobile industry’s increasingly demanding requirements such as severe vehicle emission standards. industrial demand is also moving towards HVI hydraulic fluids and high oxidation stability turbine oils. since more than 80 per cent of the content of lubricants consists of base oil, higher quality base oil is essential in producing higher quality lubricants. GSCaltex Group II/III base oil can give the optimal solution for top quality lubricants, which conventional base oils are not able to provide. the high performance lubricants from GSCaltex offer ultimate reliability at all temperatures, lower oil consumption, significantly lower fuel consumption and specifically extended service intervals. Whenever engines and gearboxes run freely and more reliably, operating costs are lower if only because they consume less. and just one per cent lower fuel consumption means, depending on operating conditions, fuel savings of several hundred rupees per vehicle and year. research and development is the core strength of GS Caltex in developing product competitiveness for lubricants and polymers.

 

Any new product launches or planned in the near future?

 

With introduction of BS VI emission norms from April next year , GS Caltex is already ready with its futuristic portfolio to meet the demands of the industry . We have already invested in developing our PAO based Kixx range (Kixx DX EURO 15W40– API SJ4) to meet future demands of the sector. Product categories meeting API CK4 and API FA4 standards are also ready for launch and will be in market as India moves to stricter emission norms towards BS VI. Apart from same , we have expanded for Hydraulic Oil portfolio to launch Long Life Hydraulic Oil ( Kixx Hydro HVL  ) as well as Zinc Free Hydraulic Oil ( Kixx Hydro AF ). We have also expanded our synthetic grease portfolio to focus on Hi Temperature Grease ( Therma 2 ), Moly Grease ( Molytex 2 ) and Steering Grease ( Multifak EP2 )

 

Which user segments are the biggest demand drivers for your products and major demands made by end-users.

 

Both Automotive and Industrial segments are growing in India and witnessed more than 5-6% growth Year on Year. Growth in Industry segment is driven by strong investments in Infrastructure and government initiatives like ‘Make in India’. Passenger Car segment is also witnessing a double digit growth in last few years which augurs well for the automotive lubricants industry. Core sector industry performance has also improved in last few years  providing impetus to growth in  Mining, Steel, Power and  Energy sectors.

Group II/Group III and synthetic Kixx LUBO base oil from GS Caltex are designed to be more robust in terms of low temperature pump-ability, high temperature stability, and protection against deposits. So, apart from choosing the right lubricants and applications from GS Caltex basket , maintaining the standard operating procedures is also critical for industrial application.

 

Can you list some of the emerging trends of preference for Branded products.

 

Our  very impressive range of high quality finished lubricants is now supplied  to  large businesses including major OEMs both Globally as well as in India . GS Caltex has been one of the fastest growing Lubricants brand in Indian market in last few years .Now, in terms of technological advancements, even in India, conventional Group I base oils form a very significant part. But, at GS Caltex, we manufacture the products with Group II plus and Group III base oils, which we are importing from Yeosu refinery in South Korea. These are made from advanced base oils, which not only helps reduce friction, but also run the machines longer. What I mean by that is synthetic lubricants and Group II/Group III lubricants create better lubrication between moving parts than conventional oils. So, they don’t break down in high heat or high stress situations, which is needed in high performance application. They also offer excellent cold weather performance and extreme temperature protection.

 

Tell us about your refining facilities in India, in terms of types and capacities.

 

Research and Development is the core strength of GS Caltex in developing product competitiveness for lubricants and polymers. GSC R&D facility is located in Daejonnear Seoul in South Korea which has developed many award winning lubricants to forge partnerships with major Global OEMs.

In November 2007, GS Caltex began base oil production with 16,000BPSD capacity. As of 2010, its production capacity holds 23,000 BPSD; GS Caltex expanded its base oil production capacity to 26,000 BPSD through revamping of its Base Oil Plant in 2011. By using the latest cutting edge hydrocracking technology, GS Caltex aims to be the influential and dominant supplier of high quality base oil in Asia through further expansions and improvements.In India our products GS Caltex high performance Lubricants are blended in the state of art Lube Oil blending plant near Navi Mumbai and distributed across India through a well established ware house network to reach its end users both in B2B and B2C segments.

BS-VI norms are soon going to be implemented. How prepared is the market and the industry for this change. What will be the impact of BS-VI norms on your product line. OEMs are definitely prepared and are ready to take the emission challenge to move India towards BS VI regime. We are also ready with our BS VI product lineup partnering several OEMs. The change in product line will be not be overnight but will have a gradual process. Hence conventional products will still have a major share even after introduction of BS VI. Over a period of time with support of OEM and Government legislations several high performance lubricants will come into market which will support to reduce carbon foot prints significantly. Demand for AUS 32 will rise exponentially in next few years with change in emission technology amongst the users.

 

Future outlook for lubes and engine oil industry and from your company perspective

 

As stated earlier, current economic slowdown may take few quarters to pass and post which growth in Infrastructure sector is expect to drive both Industrial and Automotive segment Lubricant growth. Also, Government push in Infrastructure sector  is driving the market for construction equipment and will continue. In a report, it is estimated that the construction equipment market is to grow at a CAGR of 6.8% during FY18-FY24 in India. Road construction, Mining and Infrastructure segment are driving the growth of  construction equipment  which in turn push demand for Lubricants, which is our core area of focus. According to ICRA rating agency, Mining Construction equipments had grown by 20% in 2018 itself.

Moreover, rapid urbanization, abundance of  foreign investments and surging demand for responsive equipment are few of the other major factors expected to boost demand for construction equipment in India in the coming years. Increasing number of public private partnerships and government initiatives such as smart city, housing for all, port connectivity, coastal roads, railway safety implementation etc  would also enhance the construction equipment market in India during forecast period till 2024. GS Caltex is ready to take the challenges in economy and drive further growth in Indian market.

 

 

 




Leave a Comment

Name  
Email Address
(will not be published)    
Website
Comment