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B2B Marketing Project by
Harshit Goyal 31NMP20
Kaustav Chowdhury 31NMP25
Virat Mehta 31NMP57
ABOUT THE COMPANY
■ Brief Timeline
– 1899 – The Wakefield Oil Company was founded – birth of the brand
Castrol
– 1966 – Castrol acquired by Scottish company Burmah Oil – renamed
Burmah-Castrol
– 2000 – Burmah-Castrol was purchased by London-based MNC – BP
■ Castrol India Ltd. – largest manufacturer of industrial and automotive
lubricants with 48% market share
■ 5 manufacturing plants – 270 distributors – 70,000 retail outlets
PRODUCTS
INDUSTRY OVERVIEW
■ Till 1991, Indian Government regulated the industry –
IOCL, HPCL and BPCL
■ Only major private players – Castrol and Veedol
■ Post-1991, Mobil, Exxon, Caltex and Shell formed
alliances with state-owned giants to tap into their
distribution network
■ Market characteristics
– Price sensitive
– Volume sales going down due to lower OEM sales
– Decline in re-purchase due to longer life of
lubricants and better engines
– Automobile:Industrial -> 60:40
– Over 30 small and big players leading to intense
competition increased focus on product
technology, advertising, brand building and
service
LUBRICANT INDUSTRY POTENTIAL
■ The Indian lubricant market is expected to register a
CAGR of 4.64%, during the forecast period, 2018-
2023
■ As of 2018, volume contribution of commercial vehicle
segment to the overall lubricant business is 30%
globally and more or less the same in India
■ Industrial contribution
– 45% globally
– 52% in India
■ Personal Mobility contribution
– 24% Globally
– 16% in India
IMPACT OF ELECTRIC VEHICLES
■ France will ban all gasoline and diesel vehicles
by 2040, while Athens, Madrid, and Mexico City
have announced plans to ban all diesel cars and
vans by 2025
■ China and India are set to follow suit
■ 52% of world lubricant demand (9 million metric
tons) come from Automotive industry Any
change is going to have significant impact
Competitive Economic
Activity Uncertainty
CUSTOMERS
CHALLENGES & SYMPTOMS
Challenges Symptoms
• Dominance of PSUs in the industrial • Dependence on the automotive
lubricant sector industry specifically for Engine Oil Sales
• Project declining demand of lubricants • Low growth rate in revenue (6%)
• Uncertainty of Automobile Regulations • Substantial reduction in marketing
• Huge annual investment in maintaining expenses (10%)
an extensive distribution network for
Automotive sector
DEMAND DRIVERS
Automotive Lubricants
• Rural segment key market for two wheelers
• Expected to grow by 8% YoY in both two-wheeler and four-wheeler market
• Commercial vehicles expected to grow by only 0.5 %
• Overdependence on infrastructure
• Serious threat from e-Vehicle makers and rising oil prices
Industrial Lubricants
• Expected to grow by 6% YoY
• Make-in-India initiative expected to drive growth in the manufacturing industry
• Foreign Direct Investment
Impact of
Electric
Mobility
Role of
"In the future, product, brand and industry lifecycles are going to get compressed. Emerging
Therefore, the fastest and smartest way to do it is by collaborating. To carry forward its Markets
success story in the new disruptive business world, the nearly 120-year-old company
is getting ready to draft new strategies.” ~ Mr. A S Ramchander, CMO, Castrol India
RECOMMENDATIONS
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Project Castrol Molub-Alloy Chain Oil as a premium oil for the sector
Upstream suppliers
THANK YOU!