Gulf Oil eyes market leadership in India, global expansion to drive next growth phase

Gulf Oil has emerged as one of the leading players in India’s competitive lubricants industry, rising from a relatively small player in the 1990s to become the second-largest company in the private sector. The company is stepping up its engagement with original equipment manufacturers (OEMs), exploring acquisitions in lubricants and speciality chemicals, and entering new markets, including Mexico and the US.

In an interaction with ET’s Kalpana Pathak, Sanjay Hinduja, non-executive chairman of Gulf Oil Lubricants India, discusses the company's growth ambitions, investment plans, emerging business opportunities, supply-chain challenges and global expansion strategy.

Edited excerpts:


What are Gulf Oil’s growth ambitions in India, and how does the company plan to strengthen its position in the competitive lubricants market?

Gulf Oil aims to move from its current number-two position in the private sector to become the market leader. The company is focusing on expanding its product portfolio, strengthening its OEM partnerships and increasing manufacturing capacity. It currently works with more than 60 OEMs in India, compared with just one when it began operations. It is also exploring mergers and acquisitions in the lubricants and speciality chemicals segments to accelerate growth.

How much is Gulf Oil investing in expanding its manufacturing capacity, and what will this mean for the business?

Gulf Oil is investing approximately ₹55 crore to expand capacity at its Silvassa and Chennai plants. The combined manufacturing capacity is expected to increase by around 70%, from 140 million litres to approximately 240 million litres. The company is also modernising its existing facilities and strengthening its manufacturing infrastructure to cater to rising demand across automotive, industrial and infrastructure segments.

Which business segments are expected to drive Gulf Oil’s growth over the next few years, particularly amid India's infrastructure boom?

The company expects strong growth from its B2B, industrial, infrastructure and OEM businesses. These segments have been recording high double-digit growth, with overall volume growth reaching 17% in the first quarter and 16% in the second quarter. Gulf Oil is also exploring emerging opportunities in data centre cooling, speciality greases and aerospace-related applications. While data centre cooling remains a relatively small market in terms of volumes, the company sees it as a promising future opportunity.

How is Gulf Oil managing rising raw material costs and supply-chain disruptions amid geopolitical tensions inWest Asia?

Gulf Oil has managed supply-chain challenges through long-term procurement agreements with two refineries, with approximately 70% of its base oil requirements secured through term contracts. The company has also taken steps to maintain adequate inventory and ensure uninterrupted supplies to customers, including its OEM partners and marine clients. It has implemented three rounds of price increases in the automotive segment over six months and successfully protected its EBITDA margin in the 12–14% range despite rising input costs.

What is Gulf Oil’s international expansion strategy, and which markets will be its key priorities going forward?

Gulf Oil is looking to strengthen its global presence, particularly in South America, Southeast Asia and the UnitedStates. The company plans to enter Mexico and re-enter the US market in 2027 through a master licensing arrangement covering 11 states initially. Its marine business has also emerged as a major growth driver, with operations across more than 1,034 ports worldwide. Additionally, the company is exploring acquisitions in markets such as Vietnam and SouthAmerica to expand its international footprint. The long-term ambition is also to take Gulf Oil International public within the next four to five years.