The Indian economy did face slower growth over the last 24 months due to transformational changes undertaken at the policy level. However, the latest IMF forecast reveals economic growth is expected to grow 7.4% in the current fiscal from 6.7% in FY18 and accelerate further in FY20 to 7.8%. In contrast to China which is estimated to slow, India will strengthen its position as the world’s fastest-growing major economy.
This positive and encouraging growth momentum has been possible because of the transformational policy changes that inflicted short-term pain but propelled the national economy onto the fast track towards enhanced growth. Economic growth also brings along increased prosperity and improved standards of living thereby providing fillip to sales of vehicles and augments industrial consumption.
It would be pertinent to point out that your company is well placed to cater to the growing lubricants demand - both automotive and industrial resulting from higher vehicular and industrial equipment sales. Furthermore, we have successfully catered to the growing needs of automotive, industrial, marine and process oil markets through implementation of cutting-edge technologies and competent compliance systems.
Current & Future Strategy:
The IPOL brand has been growing in visibility and credibility through various initiatives like having cricketer Suresh Raina as brand ambassador, a complete change of packaging colour scheme to purple, reflecting the vibrance of the brand and launching new products like IPOL Clear Blue which will be required by most of the new technology engines to meet the emission norms of BS IV and BSVI.
Your company has also enhanced its distribution network in the premium automotive lubricant segment through the introduction of the Spanish brand REPsOl which has been well received by the market.
We have expanded our customer base in the manufacturing segment through Industrial lubricants which include Metalworking and specialty lubricants through a value selling approach. We have also secured a supply position with all tyre manufacturers for supply of Rubber Process oils.
We have invested in high precision quality-control and product development labs to meet global standards and OEM expectations. In addition to sprucing up outer decor of the plant, we have introduced de-aerator for grease manufacturing and new 50 kg capacity pilot kettle for R&D work.
Our endeavour has consistently been to be the preferred partner, for providing world-class lubricants and services by applying technology and creating innovative business solutions. All our efforts are focused towards catering to the growing needs of automotive, industrial, marine and process oil markets through technology and compliance. We aim to achieve our goals through continuous improvement in operating efficiency and innovate, as we move ‘Towards New Horizons’.
Our stock points in various states cover all India market through well established distribution network. Additionally, the automotive lubricants are sold through a network of distributors and a wide spread of dealer network across the country. Industrial lubricants and rubber process oils are sold directly to key customers. The small and medium manufacturing establishments are serviced through a country wide network of distributors.
Our customer offering falls under three broad areas a) Direct product offers b) Product offer supported by technical services and c) A holistic package of fluid management solutions.
External Influence on Business:
Global crude prices rose sharply due to a multiple factor such as OPEC and Russia cutting supplies, declining production in Venezuela and geopolitical tensions. In April 2018, the price of the Indian basket of crude rose to an average of $69.30 vis-a-vis $47.56 and $56.43 per barrel in FY17 and FY18 respectively. Anticipating this sharp spike in prices and in an endeavour to shield ourselves from such uncertain fluctuations, we maintained optimal stock level of base oils procured at economical prices subject to optimum usage of available storage space.
India has set for itself an ambitious target for increasing the Electric vehicles (EV) by 2030 and this is certainly expected to bring a transformational change across the automobile sector. However, it would be pertinent to point out that the need for lubricants would still remain significant for the next few decades as understood from the various research agencies in the oil & gas as well as from automotive OEMs.
The government’s ‘Make in India’ policy aims to make India a global manufacturing hub. The ultimate objective is to enhance manufacturing’s share of the nation’s GDP. On our part, we have taken the step forward to make in India, the premium Spanish brand REPSOL lubricants in our plant in Vasai for which we have the license to manufacture and market in India. The push towards manufacturing activities by the Indian government is expected to increase the demand for industrial lubricants and therefore provide new business opportunities for the Company.
A Responsible Corporate
As a responsible corporate citizen, our policy is to nurture a culture that imbibes the attributes of quality management and environment-friendliness in products and into our day-to-day work processes thereby ensuring a productive and healthy work-environment and reduced defects/errors in products, processes, systems and results.
Our approach extends across businesses, operations and management activities and is reviewed regularly to keep up with changing business needs. This policy, along with the ‘Clean and Green Policy’ forms an integral part of the Company’s culture and is communicated through established channels of communication.
We remain highly enthusiastic to tap into awaiting opportunities and continuously look out for newer business avenues. Our business and product portfolio stands on strong fundamentals and this instills within us confidence to ask you to stay with us and be a part of our promising journey.
With my best wishes,