You are here: Home » Companies » News
Business Standard

BPCL considers raising engine oil market share to 13-14% by March

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

Topics
BPCL

Press Trust of India 

BPCL
BPCL sells around 330 thousand metric tonne of lubes per annum worth around Rs 3,000 crore

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 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.

sells around 330 thousand metric tonne of lubes per annum worth around Rs 3,000 crore, he said.

To ramp up its rural volume, 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.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Mon, October 12 2020. 20:16 IST
RECOMMENDED FOR YOU
.