Latest news with #RaviChawla
Mint
26-05-2025
- Automotive
- Mint
Long-drain oil & cricket: Gulf's winning formula in India
For a category long defined by function over feeling, Gulf Oil Lubricants is trying something unconventional: building an emotional connection in a price- and performance-driven market. Under the leadership of Ravi Chawla, managing director and chief executive officer (CEO), the brand has quietly but steadily repositioned itself as a premium challenger. In an extensive conversation with Mint, Chawla outlines Gulf's five-pillar strategy, its shift from mechanic touchpoints to digital channels, long-term OEM (original equipment manufacturer) partnerships, and the company's growing ambition to become a full-stack mobility and electric vehicle (EV) ecosystem player. Edited excerpts: Gulf Oil seems to have been outperforming the industry consistently. What is working for the company? If you look at our track record, it speaks for itself. When I took over in 2007–08, Gulf was ranked sixth or seventh in India's lubricant market. The brand existed, but we were underperforming, priced 20% below Castrol and investing very little in marketing. Coming from an FMCG (fast-moving consumer goods) background, I knew the power of segmentation and brand building. We mapped five strategic pillars against our brand values—care, courage, inspiration, youth and endurance—and focused sharply on diesel engine oil, where we had a natural edge through Ashok Leyland. Innovation helped too—Gulf launched India's first long-drain oil in 2006. We turned that into a story of endurance. Imagine being a truck driver used to changing oil every 18,000km, and we offer a product that lasts 36,000km. That's a compelling value proposition. Also Read | Are advertising agencies dying? Long may the art of persuasion live That's double the life… Exactly. That's where our segmentation kicked in. Diesel engine oil, bazaar market products like motorcycle and car oils, and long-term OEM tie-ups became our growth levers. These are backed by strong R&D, products that last longer and are better suited to Indian conditions. And we priced them smartly, 7–8% below Castrol, but with higher performance. That gave us value play without diluting the brand. Also Read | After the raids: The uneasy truths behind Indian advertising's perfect façade You also shifted focus beyond motorsports? Yes. In 2008, we entered cricket through Indian Premier League (IPL), starting with Kings XI Punjab and later CSK (Chennai Super Kings). Dhoni became our brand ambassador and gave us massive equity. But equally important was our investment below the line, with mechanics, retailers, and our on-ground team. That ecosystem helped us grow 2–3x faster than the market. Given the EV transition, how are you thinking about future-proofing the business? The lubricant market is still solid. India has 265 million ICE motorcycles on the road. Diesel engine oils still form 43% of the market. Even with EV growth, we expect 75–80% of our core segments to remain stable. And that's why we're not just defending the core, we're growing it through premiumization, synthetic oils, and better product mix. Our "Unlock 2.0" strategy is about accelerate, premiumize and transform. Also Read | Social media ads are not just persuasive enough Let's talk about the transform part. What's your EV play? We've made three key investments. First, UK-based Indra, which makes AC chargers, second, Tirex India, a DC charger manufacturer we acquired in 2023, and third, Electrifie, an EV charging platform where we own 26%. This ecosystem allows us to serve both ends of the charging market. With over 80,000 retail outlets and 10,000+ Gulf stops, we already have the distribution to scale EV infrastructure. So, Gulf is becoming a mobility brand? Yes, mobility is a growth leg. Our core is strong, but our future core includes digitization, EV infrastructure, and artificial intelligence (AI)-led sales planning. And we're not doing it for burn. We're creating sustainable value, just like we did with lubricants. The marketing also seems to have evolved. The Dhoni pillow ad, now Smriti Mandhana and Hardik Pandya. What's the larger idea? It's emotional branding in a rational category. Our values—care, courage, inspiration—guide us. Our "Unstoppable" campaign wasn't just a TV ad; it launched across outdoor, Spotify, and 13,000+ retail shops. We're also using digital to support our grassroots network—mechanics and retailers now have real-time data access. Any new launches coming up? You'll soon see movement in lifestyle merchandising. NY.1, our apparel line, and maybe even Reviva, our coffee brand, could come to India. We're tying up with Nayara to expand into Tier 2–3 fuel stations as well. So yes, a lot's coming. And Gulf's market positioning now along with spends? We're among the top two–three in awareness and consideration. From 20% behind Castrol, we're now just 7–10% off. With Unlock 2.0, we're going to close that gap even faster. We spend roughly 3.5% of topline today on advertising and marketing. While others may go big during IPL, our philosophy is consistency. Our CSK partnership is in its 12th year, the longest-running in IPL. That kind of continuity builds real brand trust. And how much power do you really have with your OEM partners? OEM partnerships are core. Back in 2007–08, we had just Ashok Leyland. Today, we have many. These tie-ups ensure our oils are co-branded or endorsed post-warranty, and that gives us massive credibility. For example, we supply over 50% of L&T's lubricant needs. That's not just brand, it's about service, R&D alignment and execution. How do you navigate volatility in crude and base oil? We work within a 12–14% margin band. There's a lag effect with base oils when crude fluctuates, but we've built in contractual clauses with OEMs. For B2C (business-to-consumer), we adjust more dynamically. Margin expansion is also coming from product mix—more synthetics, more premium packs. You've even done fan-generated ads? Yes! Last year with CSK, we ran a contest where fans created ads—and we aired the winning one live. We've done similar initiatives in motorsport with McLaren and Williams. It's part of making Gulf more than a product—making it part of pop culture. Where does ESG fit in? We've committed to net-zero, moved to solar rooftops, are working on recyclable packaging, and have a 25% share in AdBlue (an exhaust fluid) that cuts diesel emissions. We're exploring re-refined oil and circular models too. Sustainability is not a checkbox—it's core.
Business Standard
22-05-2025
- Automotive
- Business Standard
Gulf Oil records PAT of Rs 91 crore in Q4; EBITDA margin increases to 13.60%
Gulf Oil Lubricants India has reported 7.24% rise in standalone net profit to Rs 91.62 crore on a 7.30% increase in revenue from operations to Rs 915.08 crore in Q4 FY25 as compared with Q4 FY24. EBITDA improved by 8.20% to Rs 124.47 crore in the fourth quarter from Rs 115.04 crore recorded in the same period last year. EBITDA margin rose by 11 basis points year-over-year (YoY) to 13.60% in Q4 FY25. Profit before tax in Q4 FY25 stood at Rs 123.43 crore, up by 8.1% from Rs 114.20 crore in Q4 FY24. For FY25, Gulf Oil has registered a standalone net profit of Rs 362.25 crore (up 17.58% YoY) and revenue from operations of Rs 3,554.36 crore (up 8.23% YoY). Gulf Oil stated that it has maintained strong growth momentum, recording quarterly volume growth 2x the industry rate, driven by broad-based gains particularly double-digit growth in personal mobility and strong growth in Motorcycle Oils segment within it. The company increased the distribution network to over 90,000 touchpoints pan India. Ravi Chawla, Managing Director & CEO, Gulf Oil Lubricants India, said: Fiscal year 202425 concluded on a momentous note, with revenues surpassing the Rs 3,500 crore mark. As outlined at the start of the year, we increased our market share across all key segments and delivered volume growth at twice the industry rate. These results were supported by focused strategic efforts to strengthen our market penetration, expand our product portfolio across B2B, B2C, and OEM segments, and grow our customer bases. Our EV charger subsidiary, Tirex, closed the year on a strong note, reflecting our continued efforts to strengthen the EV segment in line with our future vision. Gulf Oil Lubricants India (GOLIL) is part of the transnational conglomerate Hinduja Group. GOLIL sells its lubricants products under the Gulf brand with sales largely to the automotive sector along with industrial users. The scrip fell 1.83% to currently trade at Rs 1180.50 on the BSE.
