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Gulf Oil Lubricants India Ltd.

BSE: 538567 Sector: Industrials
NSE: GULFOILLUB ISIN Code: INE635Q01029
BSE LIVE 15:40 | 18 Aug 814.85 -2.05
(-0.25%)
OPEN

810.05

HIGH

819.90

LOW

810.00

NSE 15:50 | 18 Aug 814.45 -1.90
(-0.23%)
OPEN

813.10

HIGH

823.45

LOW

806.10

OPEN 810.05
PREVIOUS CLOSE 816.90
VOLUME 1554
52-Week high 900.00
52-Week low 577.00
P/E 32.59
Mkt Cap.(Rs cr) 4,050
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 810.05
CLOSE 816.90
VOLUME 1554
52-Week high 900.00
52-Week low 577.00
P/E 32.59
Mkt Cap.(Rs cr) 4,050
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

It gives me great pleasure to share with you an update on the overall performance ofyour company after what has been yet another successful year in 2015-16. As envisionedearlier our decision to demerge the lubricants operation as a ‘pure play’company has unlocked tremendous value for all stakeholders backed by solid consistentachievements of your company’s industry leading business results year-after-year.

Last year your company has been able to meet the twin challenges of a slowing globaleconomy and a less than expected recovery in the Indian context. Fall in crude oil pricesrupee depreciation second successive poor monsoon and stagnating growth in emergingmarkets especially China impacted the business environment. Slowing demand conditions inthe Indian lubricants market and competition both international and local continued tobe aggressive. Undaunted your company remained focused on delivering profitable growth inthe year 2015-16 and recorded one of the best years in terms of operational and financialperformance.

Your company has shown a healthy growth across all parameters and maintained itsposition as one of the fastest growing lubricants major in the Indian context. At volumesabove 75000 KL in 2015-16 the company is on course to move up to be amongst the top 3private sector players in India. In FY 2015-16 the turnover for your company reached atan all-time high of 71167

Crores representing an increase of ~ 5 percent over the previous year. The netturnover crossed the 71000 Crore mark and net profit after tax surpassed 7100 Crores forthe first time ever representing a ~ 30 percent increase over the previous year.Strengthening its balance sheet and financial position your company further enhanced itscash liquidity and became net debt free for the first time in 2015-16.

Your company increased the dividends to reward the shareholders and had disbursed aninterim dividend of 73 per equity share (150% on Face value of 72 per equity share) in Feb2016. FY 2015-16 concluded with the Board recommending a final dividend of 74 per equityshare (200% on Face value of 72 per equity share) aggregating to 77 per equity share (350%on Face value of 72 per equity share) subject to your approval at the Annual GeneralMeeting.

Our commitment to offer products with differentiated value propositions OEM tie-upsand innovative brand building efforts continued to form the core of our strategy this yearas well. Furthermore to drive up our market shares & reach the targeted segmentssignificant time & resources were invested in training our channel (B2C) & B2Bteams. An energising theme ‘UDAAN - Higher Faster Further’ was rolled outduring the year for the channel team. New online systems for tracking distribution datafrom the market successfully complimented the innovative distribution rural andindependent workshop expansion related programmes

implemented during the year. This is well reflected in our volume-led growth acrosssegments.

Our teams worked closely with our esteemed OEM’s Industrial InfrastructureMining & Fleet customers Indian & International Marine customers to grow withthem and won many new accounts even as competition struggled to maintain their base.

In March 2016 Gulf Oil International entered into path breaking global partnershipswith the world renowned Manchester United Football Club and Milwaukee BMW Superbike Teamfor the World Superbike

Championships which are being leveraged by Gulf in India. Your company will continueits strategies to invest in both Global & Indian brand associations & OEM tie-upsto further enhance its technology progress brand & customer connect.

Last year I had shared our capacity expansion plans for our Silvassa plant from 75000KL to 90000 KL which positions us to meet our immediate growth needs. I am happy toreport that these planned Capex investments have been successfully completed and yourcompany has set new production and dispatch records in 2015-16. As you may be aware tomeet our future growth ambitions we are building a greenfield plant near Chennai with acapacity of - 40000 - 50000 KL the Bhoomi Pooja was done in May 2016. We have awardedcontracts for Civil and PEB works and construction has begun in G2 of FY 2016-17.

Your company’s aspiration to create sustainable societal value inspired by acommitment to build the local areas in which it is located is manifested in its CSRinitiatives. During the year your company initiated projects and activities in the fieldof education healthcare and road safety in and around its area of operations and also inthe local areas at Silvassa DNH.

Looking ahead we expect the global economy in 2016 to remain challenging. As I view thebusiness environment the climate of uncertainty on the back of Brexit and the uncertainglobal economic & political scenario may have spillover effects in major economies.

International Crude Oil prices are also far from seeing a stable sustainable recoveryadding to more global economic woes originating from oil producing nations. However theIndian economy continues to be an exception. With the Government of India ushering aseries of reforms and spending on infrastructure projects we are starting to see a pickupin the domestic market. An improvement in consumption of Lubricants on the back of agrowing Automobile Industry led by commercial and personal mobility vehicles augurs wellfor your company. Most of the experts believe that India’s growth story shall remainlargely positive on the strength of its economy.

Going forward I am confident that your company with a strong business model in placealong with the new initiatives being taken by the management is ready to set the pace fortomorrow and SHIFT INTO HIGH GEAR to achieve the next levels of performance brand equityand partnerships that will continue to enhance value creation for all stakeholders.

I would like to thank most sincerely all our shareholders for their continuedconfidence trust and support. The achieved growth journey of your company would not bepossible without this.

Our distribution partners OEM and B2B customers our suppliers and bankers make up thesuccessful commercial operations of the company. The essence of the company is howeverthe management and the employees. I must single out each and every employee for the hugeeffort that they have put into the company to make this year an outstanding success. Thankyou.

Sincerely

Sanjay G Hinduja

Chairman (DIN: 00291692)