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Gulf Oil Lubricants India Ltd.

BSE: 538567 Sector: Industrials
NSE: GULFOILLUB ISIN Code: INE635Q01029
BSE LIVE 15:40 | 08 Dec 976.65 -0.90
(-0.09%)
OPEN

979.55

HIGH

985.75

LOW

975.00

NSE 15:52 | 08 Dec 977.25 -0.75
(-0.08%)
OPEN

980.00

HIGH

999.90

LOW

971.05

OPEN 979.55
PREVIOUS CLOSE 977.55
VOLUME 535
52-Week high 1098.50
52-Week low 577.00
P/E 36.12
Mkt Cap.(Rs cr) 4,854
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 979.55
CLOSE 977.55
VOLUME 535
52-Week high 1098.50
52-Week low 577.00
P/E 36.12
Mkt Cap.(Rs cr) 4,854
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Gulf Oil Lubricants India Ltd. (GULFOILLUB) - Chairman Speech

Company chairman speech

Dear Shareholders

The Indian economy continues to grow strongly and remains a bright spot in the globallandscape. While the global GDP growth slipped to 3.1% in 2016 shedding 30 basis pointsover 2015; the Indian economy grew by 7.1% in the fiscal year 2016-17 in spite ofdemonetisation.

It's a matter of great pride and privilege for all of us to be a part of a promising'India story' unfolding. Your Company has delivered yet another successful year in 2016-17in terms of both financial and operational performance. With volumes reaching 84000 KL inFY17 your Company is on course to be amongst the top three private sector lubricantplayers in India. During the year your Company increased its market share across segmentswith a healthy improvement in product mix aiding a strong top-line and bottom-line growth.In FY17 the net revenue stood at Rs. 1131 Crore growing by 11.8% as compared to theprevious year. The net profit reached Rs. 121 Crore increasing by 20.7% as compared toFY16. The Company also continued to strengthen its balance sheet and financial position.

During the year your Company disbursed an interim dividend of Rs. 3.50 per equityshare (175% on face value of Rs. 2 per equity share) to reward the shareholders.Additionally the Board has recommended a final dividend of Rs. 5 per equity share (250%on face value of Rs. 2 per equity share) aggregating to Rs. 8.50 per equity share (425% onface value of Rs. 2 per equity share) subject to your approval at the Annual GeneralMeeting.

With the combined might of Gulf Oil's global and Indian assets and initiatives brand‘Gulf' continues to raise its equity and acceptance across the length and breadth ofthe country as evident from its steadily improving brand recall in the minds of Indianconsumer. Your Company has successfully leveraged its global partnerships and associationsin India. Be it the successful partnership with Manchester United or sponsorship of theWorld Superbike Championship Teams Aprilia Milwaukee and Alethea BMW all the associationshave enhanced Gulf Oil's brand visibility and consumer engagements in India. In additionyour Company's India centric brand initiatives and campaigns featuring its brandambassador M. S. Dhoni and sponsorship of IPL Team Rising Pune Supergiant furthersupported the brand enormously in last year.

Your Company worked closely with our OEM partners – Ashok Leyland Mahindra andothers to achieve significant growth in volumes and product usages. We also expanded ourcustomer base in the Industrial Infrastructure Mining Fleet and Marine segments and wonmany new marquee customers. Our Strategic OEM tie-up with Bajaj Auto Limited as announcedlast year for the two wheeler segment was an important milestone for your Company. Thegrowing number of OEM tie-ups reflect these companies' confidence in not only the Gulfbrand product technology and distribution prowess but also in your Company's ability tosupport their longer term growth journey in India and export markets. The thrust onR&D and innovation further helps your Company to offer differentiated valuepropositions and forge strategic partnerships with leading OEMs and technology providers.

Looking ahead your Company with a strong business model is well placed to capturehealthy growth in a market that is poised to witness steady growth. Stimulus from theIndian economy through Infrastructure growth projects with activities like expansionconstruction and modernisation of roadways metro networks and ports through the BharatMala & Sagar Mala programmes demonstrate confidence and positive sentiment towardsthe Indian economy. Huge focus on systematic growth in manufacturing through initiativeslike 'Make in India' transition towards an organised tax compliant transparent and lesscash dependent economy smooth roll out of GST implementation of BS IV emission norms andthe resolve to adopt BS VI emission norms by 2020 amongst other things augurs well foryour Company's future growth in both Automotive and Industrial lubricant segments.

Your Company stands committed and well prepared to consistently deliver all roundgrowth. Gulf Oil is well set to leverage the strong platform of superior product portfolioand mix efficient and growing distribution reach strengthening brand appeal and enhancedmanufacturing base in India.

Happy to share your Company's new greenfield plant in south India near Chennai shallcommence operations in the next few months. Additional capacity of about 40000-50000MTPA from the new plant with its ability to roll out value-added premium lubricantspositions your Company to meet its immediate and near term growth needs.

The management team and all employees of Gulf Oil India are fully geared up to achievethe next levels of performance. I congratulate and thank them for a commendableperformance in FY17. In addition I would like to thank all our distribution partners OEMand B2B customers our suppliers financial institutions and bankers for their continuedtrust in us. Above all I would like to most sincerely thank all you shareholders foryour belief and confidence in our ability to create value.

Yours Sincerely

Sanjay G Hinduja

Chairman

(DIN: 00291692)