Castrol India gains on joining hands with ki Mobility Solutions

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Castrol India (CIL) added 1.42% to Rs 132 after the company announced collaboration with ki Mobility Solutions to strengthen Indian automotive aftermarket ecosystem.

The lubricant maker has announced a collaboration to leverage each other's strengths and expand the country's automotive aftermarket ecosystem via 'myTVS', KMS's digitally integrated multi-brand service platform for two and four wheelers.

CIL will acquire a 7.09% stake in KMS with a planned investment of upto Rs 487.5 crore, marking CIL's largest all-cash deal till date.

With this strategic investment, CIL aims to expand its presence in service and maintenance for both internal combustion engine (ICE) and electric vehicles (EV) and leverage myTVS' digital and operational capabilities.

This alliance will also offer potential for Castrol and KMS to collaborate and partner in select markets beyond India.

Sandeep Sangwan, managing director, Castrol India, said, KMS has a leading automotive digital platform, myTVS which is disrupting the Indian aftermarket. Castrol's established brand equity and nation-wide footprint in India, combined with myTVS' digital strength will bring structure to the currently fragmented automotive service sector and also accelerate business growth for KMS.

In addition, Castrol will explore business and technology collaborations with KMS to enable readiness for transition to electric mobility. Indian consumers will reap the dual benefits of trusted brands and reliable services.

Castrol India is one of India's leading lubricant companies with brands such as Castrol CRB, Castrol GTX, Castrol Activ, Castrol MAGNATEC and Castrol VECTON. The company also operates in select segments like high performance lubricants and metalworking fluids used in a wide variety of industries such as automotive manufacturing, mining, machinery, and wind energy. Castrol has a large manufacturing and distribution network in India with three blending plants and a distribution network of 350 distributors.

The company's consolidated net profit rose 0.68% to Rs 187.17 crore on a 4.46% increase in sales to Rs 1121.07 crore in Q2 FY23 over Q2 FY22.

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