Valvoline Cummins Ltd (VCL), a joint venture between Valvoline International, USA, and Cummins Diesel Sales and Service (India), a wholly owned subsidiary of Cummins India, is targetting a turnover of Rs 150 crore for the current financial year (2002-03). This would be a substantive increase from the company’s previous year’s turnover of Rs 112 crore.
“We currently have a share of around 3 per cent in the lube market. This share is expected to grow to above 6 per cent in the next three years,” according to VCL vice president (marketing) Prabha Shankar.
The Indian lube market is currently growing at a rate of 3-4 per cent though industry observers feel that the growth is slower because of the technological advancement in the automotive sector. The market leaders in India are Servo and Castrol. At a time when the entire lube market is witnessing a major shake-up through a series of mergers and acquisitions, VCL has been following a strategy of diversifying and expanding its product range in the market. VCL has introduced the TC Genuine oil for the Euro II friendly B series engines fitted into the Telco vehicles. With the launch of Valvoline GEO 15 W-40, the company has bagged the distinction of being a green lube company. The company is also in the process of introducing Valvoline Maxlife, which is a special oil for vehicles that have crossed the 75,000 miles mark.
“VCL’s future product offerings include procuring the Tectyl range of rust-prevention oils from Korea and also introducing a more user and customer friendly packaging for all Valvoline products,” added Mr Shankar.
Among the major marketing initiatives of the company are a tie-up with United India Insurance for initiating a mediclaim insurance policy for auto mechanics as well as promoting multi-grade oils to showcase technology. VCL has adopted a three-fold approach — corporate, technological and basket approach.