Shares of petroleum specialty products maker Savita Oil Technologies on April 16 hit their all-time high on being first Indian lubricant company to manufacture Ester molecule, which is used in biodegradable applications and also acts as a cooling agent in two- and three-wheeler electric vehicles.
The announcement saw the firm's stock price zoom 5.45 percent to Rs 516.50 on BSE at 13:26 pm on April 16. It also recorded its all-time high of Rs 525 before paring some gains on a volatile trading day.
The company is also looking at the possibility of using the molecule for immersion cooling of data centres. Immersion cooling is a rising technology for cooling data centres and its market is currently worth $400 million and is expected to surge to $2 billion by 2031.
The company has witnessed a strong performance in the past few years. Its revenue has jumped 33.8 percent to Rs 3,653 crore in FY23 compared to FY21. The profit before tax of the company saw a marginal decline of 2.7 percent to Rs 303 crore, while its revenue from lubricant oil surged 32.6 percent to Rs 867 crore in FY23 against FY21, according to the company.
The company has been testing Ester since 2015 and its plant was successfully commercialised in August 2023. The molecule is considered biodegradable and hence sustainable compared to regular base oils, the company said.
The Ester molecule is also being currently tested and piloted in some new age applications like cooling for 2-and 3-wheeler EVs, the company said in a statement.
It further said, "The finished lubricants formulated with this molecule
shows far superior performance than most traditionally
defined synthetic lubricants in the category."
According to the statement, Ester shows a reduction of 28 percent in engine deposits in certain tested formulations and gives 33 percent less friction shown compared to certain regular group 3 base oil. "The finished lubricant is also far more environmentally friendly with this molecule than traditional lubricants in the category due to the biodegradability of esters," it said.
The molecule is currently used only in sensitive applications for jet engines, wind turbines, compressors because of their high import costs.
However, Savita's new range of products optimise this technology for the domestic consumer, the firm added.
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