Castrol Mulls 150 Drive-In Retail Stops

Castrol India is planning to strengthen its retail presence to shore up its market share in the domestic automotive lubricants business which has been adversely affected by the slowdown in the auto industry.

The company is planning a four-fold expansion by adding 150 more Castrol drive-in centres, which are non-franchise auto service workshops, by end of 2002.

Castrol has also plans to spend between Rs 50,000-1 lakh on the drive-ins to give a face-lift to these independent service centres, which are primarily targeted at two-wheeler owners, and lend them its brand name.

The centres market and sell Castrol's range of auto lubricants exclusively, in return. The company, which currently operates about 50 drive-ins, had last year introduced them in the southern states on a pilot basis.

Ravi Pisharody, vice-president (marketing) of Castrol India said: "Our sales have improved by almost 30-50 per cent at these service workshops after we have branded them. We are now planning to add 50 Castrol drive-ins by the end of the current year and another 100 by the end of 2002."

Meanwhile, the company has increased its market share in the retail automotive lube market by 2.5 per cent, to take a 27.5 per cent share in April 2001, according to a survey by ORG-GFK. The increase in market share, which has come at a time when the industry is passing through a slowdown, has come in the wake of a 11-12 per cent increase in the company's share in the two-wheeler segment, Pisharody said.

Castrol India is now planning to introduce Castrol CRB Geo, a lubricant for the CNG-run passenger cars, in Mumbai next month. The product will be targeted at the CNG-run taxis in the city, which number around 23,000. The product, which was recently launched in New Delhi, currently has almost 50 per cent market share, Pisharody said.