Bharat Petroleum, which controls 11-12 per cent of the around Rs 35,000-crore engine oil market, has set a target of raising its market share to 13-14 per cent by March, given the rising rural demand as the farm sector is set for yet another bumper harvest.
The second-largest national oil marketer is also expecting to increase its rural volumes to 60 per cent and above by the end of this fiscal, from 45-50 per cent now. Tractor oils are the largest selling product for the divestment-bound company that sells its lubes under the umbrella brand of Mak.
"We hope to increase our overall market share in the lubes business to 13-14 per cent from the present 11-12 per cent. Similarly, we want to grow our rural sales to over 60 per cent from under 50 per cent now," Abhay Shah, chief general manager, in-charge of lubricants business at BPCL, told PTI on Monday.
The lubes market is around Rs 35,000 crore per annum. Of this, 48 per cent are with the three state-owned oil companies and the rest with standalone players like Castrol, Gulf Oil, among other 50-odd players. As much as 55 per cent of the market is industrial lubes, and the rest automotive, Shah said.
BPCL sells around 330 thousand metric tonne of lubes per annum worth around Rs 3,000 crore, he said.
To ramp up its rural volume, BPCL has launched a month-long farmer-focused campaign, which aims to ensure that all Mak products reach every taluka, he said, adding the campaign will also tap tractor-owning farmers through Kisan melas, connect with rural mechanics, among other engagements.
On the growth prospects of the lubes business, Shah expects it to grow 1.5-1.6 per cent annually over the next five to six years.