The Hindu Business Line : Gulf Oil in new growth phase with integrated mining services

Hyderabad, June 6 Gulf Oil Corporation Ltd, a Hinduja Group company engaged in explosives, lubricants, mining infrastructure and specialty chemicals, is now embarking on a new growth phase.

This will see the company laying special thrust on mining and infrastructure services as an integrated turnkey solutions provider and stepping up work on infrastructure and property development.

The Managing Director of Gulf Oil Corporation, Mr Subhas Pramanik, told Business Line how various divisions of the company are being finetuned to deliver improved performance and highlighted new initiatives to sustain growth.

The company, which had targeted revenues of Rs 1,000 crore for 2007-2008, closed with Rs 838 crore. It believes that it would be able to cross this target during fiscal 2008-2009. Excerpts.

Integrated mining services seem to be an emerging business opportunity for Gulf Oil?

The company has bagged several major mining services related contracts that span about 2-3 years each valued at about Rs 200-250 crore. These projects include a bauxite mining project in Orissa and an iron ore project for the Aditya Birla Group. Earlier, the business generated from the mining sector was different. We would work on different aspects of mining and the contract size was smaller. Now handling several other services, we are able to present a case for integrated services. In addition, by the size of business, we are now qualified to bid for several other large projects. Mining industry will witness major investments.

Infrastructure seems to be another major focus area?

Infrastructure is emerging as a major growth area. We started with work for Delhi Metro and followed this up with the Outer Ring Road in Hyderabad. Earlier, we were associated with the Reliance project at Jamnagar and with Singareni Collieries. In addition, we are engaged with NMDC in two projects at Donamali and are working for Coal India at Dudhichua and Nigahi. From Rs 64 crore, revenue has gone up to Rs 143 crore and possibly touch Rs 275 crore. In mining, we have two large contracts each of Rs 250-350 crore.

How about the explosives division?

The Five-Year Plan projections show that the explosives business is set to grow from Rs 1,200 crore to about Rs 8,000 crore. We now have a market share of about 20 per cent at Rs 300 crore and expect to retain this share.

While there is potential for export of explosives, there are shipping concerns. Shippers are cautious about loading explosives and ports do not allow vessels with explosives. We have addressed this issue with authorities.

The lubricant industry seems to be transitioning? How about Specialty Chemicals arm?

We are selling international range of car care products by importing directly rather than reformulating. To this, we have added log drain oils which have been received well.The Specialty Chemicals division is being projected with IDL brand. About 20 products have been rolled out and have received encouraging response locally and overseas. We expect to add more products. This division has applied for Certificate of Suitability for Cephalosporin antibiotic.

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