The Hindu Business Line : Valvoline targets Rs 250-cr sales

LUBRICANT manufacturer Valvoline Cummins Ltd has said that it expects sales to touch Rs 250 crore in fiscal 2004-05, as the company rolls out a range of new products for the heavy-duty commercial vehicles and two-wheeler segments and further strengthen its portfolio in the CNG (compressed natural gas) market.

According to Mr Naveen Gupta, Chief Executive, the company has garnered a market share of four per cent in the lubricants segment and is growing at a CAGR (compounded annual growth rate) of 35 per cent per annum.

``We are targeting a turnover of Rs 215 crore this year and are hopeful that it would grow to Rs 250 crore next fiscal,'' he said.

Valvoline is a 50:50 joint venture between the $1.2-billion Valvoline International Inc and Cummins India.

The company is also aiming to make a mark in the original equipment (OE) segment and is in talks with players such as General Motors and Kinetic Engineering to commence OE supplies.

Mr Gupta added that even though the company would market most of its products through the retail route, it was also looking at future sales from petrol pumps set up by private players such as Reliance and Essar and was in talks for the same. Currently, Valvoline has three contract manufacturing tie-ups in India, through which it is supplying to neighbouring markets as well. "Exports, which account for only about five per cent of our total sales at present, are likely to increase in a big way in the next few years," he said.