The Hindu Business Line : IOC plans to expand export market in lubricants

Indian Oil Corporation Ltd, which clocked an 8 per cent growth in 2005-06 in its lubricant and other additives business category, plans to expand its exports market while consolidating its market position during the current fiscal (2006-07).

According to an IOC official, the company earned $5.4 million in 2005-06 and hopes to clock a 20 per cent increase.

To expand its position in the foreign market, IOC on April 19 decided to convert its UAE regional office into a wholly owned subsidiary - IOCL Middle East Trading FZE - as the company already has a blending operation Jebel Ali Free Zone Authority.

Asked what benefits the company foresees, he said IOC was looking at more flexibility in blending operations, marketing and export of Servo brand to other countries in West Asia and Africa.

The company, which clocked a 6.3-per cent growth in finished lubes category, with the sale of its Servo lubricant brand, exported over 7,200 kl of Servo lubes to 10 countries including Sri Lanka, Nepal, Mauritius, Africa, Kenya, West Asia, Malaysia and Yemen. Servo is a major lubricant brand in the country not only in terms of sales but also in terms of quality and range, he said. Servo has a range of over 470 grades of lubricants - oils and greases - having a spread to meet the requirements of various automotive, industrial and marine, aviation and railroad applications.

According to the official, the market for lubricants today stands at over one million tonnes and India is the sixth biggest market. IOC currently enjoys 42 per cent of the market share.

It has tied up with both domestic and foreign original equipment manufacturers such as Tata, L&T, Maruti, Hyundai, Ashok Leyland, Eicher Motors, Mahindra and Mahindra and Timken India for various lubricating oils and greases marketed by it.

Besides, the company also has industrial clients such as the Railways and marine, and transmission companies.