Lubrizol To Hawk New Lubes Range In Local Market

Lubrizol India , the joint venture company owned by the Indian government and Lubrizol Corporation of the US, has developed certain new products in higher performance category and plans to market them in the domestic sector.

A new technology transfer agreement (TTA) has been concluded with the US company as a result of which formulation technologies are being upgraded through close liaison with the US collaborator.

Lubrizol India is a public sector undertaking under the administrative control of the ministry of petroleum & natural gas in which the government of India controls 60 per cent of the stake and the balance 40 per cent rests with Lubrizol Corporation. Lubrizol India has a paid up share capital of Rs 19.2 crore.

 

The PSU is a speciality chemical company servicing the needs of the petroleum industry by developing, manufacturing and marketing additive systems for automotive and industrial lubricants and for treatment of fuels.

Lubrizol India has factories at Trans Thane-Belapur Industrial Complex near New Bombay and at Taloja in Maharasthra's Raigad district.

The company recorded the highest ever profit before tax and profit after tax in 1996-97. PBT increased by 61.4 per cent to Rs 55.79 crore against Rs 34.57 crore in the previous year. Net PAT of Rs 33.84 crore (22.97 crore) also surpassed the previous year's figure by about 47.3 per cent.

Banerjee said the company achieved this distinction despite severe competition and an unfavourable duty structure. Finished lubricants could be imported at a lower tariff of 32 per cent as against the 42 per cent duty applicable for import of chemical additives.

The last budget saw duty being reduced to 32 per cent without any change in the duty structure of finished lubricants.

Though the company will face aggressive marketing from global additive suppliers Lubrizol India has decided not to increase the price of finished products during the year. Banerjee however admitted that the company had been phasing out low margin products, reducing raw material cost to retain its competitive edge.

The company maintained the lead position in the speciality chemical market with a sales turnover of Rs 365.36 crore, (Rs 348.13 crore) recording a moderate growth of 5 per cent.

In the year under review, Lubrizol India has paid dividend at the rate of 35 per cent for which a total amount of Rs 6.72 crore was apportioned.A new technology transfer agreement (TTA) has been concluded with the US company as a result of which formulation technologies are being upgraded.