Chevron's subsidiary and state-led Hindustan Petroleum Corporation Limited (HPCL) on October 25 officially launched the US energy giant's lubricant brand Caltex in the Indian market.
The long-term agreement with Chevron Brands International LLC, a unit of Chevron, will allow HPCL to license, market, manufacture, and distribute Caltex-branded lubricants in the country.
However, the California-based company's partnerships will also extend to original equipment manufacturers (OEMs), a senior executive at Chevron told Moneycontrol in an interview. "No matter what market we're in, we understand OEM partnerships are critical," said Danielle Lincoln, Chevron's Vice President, International Fuels and Lubricants.
"We will work with HPCL to deliver those OEM partnerships so that we can grow the business," Lincoln added. Currently, Caltex provides lubes for heavy-duty vehicles, personal vehicles, and industrial machinery.
"We will roll out a set number of products, and then we'll continue to work with HPCL to identify which new products we need to introduce to the market," Lincoln said. Through the agreement, Chevron’s proprietary Havoline and Delo-branded lubes will be sold in India.
When asked about plans to cater to the electric vehicle (EV) segment, Lincoln said that appropriate products for the EV industry will likely be brought in the future if the market demands it.
The launch reflects Chevron's entry into the crowded lubricant market as India witnesses rapid growth in the sector, with buoyant demand from automotive and industrial companies.
The Indian lubricants market is expected to grow at a compounded annual growth rate (CAGR) of 3 percent, with the country likely to see continued demand for lubricants notwithstanding the emergence of the EV segment, according to Kline's Global Lubricants 2022 market analysis report.
According to a media report, energy major Shell has said that the company wants India to be the third-largest lubricant market globally.
HPCL will produce the lubricants at its manufacturing facility in Silvassa. The facility has the capacity to produce 75 thousand kilo-litres per annum of lubricating oils, according to a press statement shared by the company.
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