Motul plans JV, may directly operate in India
ALSL has a three-year technical licensing agreement with Motul to manufacture and market Motul products in India, Bangladesh, Sri Lanka, Nepal and Bhutan.
By V Balasubramaniam, TNN |
CHENNAI: The ongoing automobile boom in India has inspired Motul, France, one of the largest independent lubricant brands in the world, to chalk out plans for directly operating in India and neighbouring markets by floating a joint venture in the New Year.
Since April 2003. Motul is produced and marketed by Atlantic Lubricants and Specialities, part of Standard grease group, Mumbai. ALSL has a full-fledged high-tech facility in Silvassa, Mahararashtra.
ALSL has a three-year technical licensing agreement with Motul to manufacture and market Motul products in India, Bangladesh, Sri Lanka, Nepal and Bhutan.
It is learnt from industry circles that next year, Motul will consider strengthening its operations and brand reach in these markets through a joint venture with its financial participation.
When queried on this, ALSL Chief Executive officer, Ashwin R Pandit declined to comment. " Motul is already investing on the brand and it is quite bullish on the lubricants market in India with all vehicle segments recording robust sales this year", he told ET.
Pandit, who was in Chennai recently in connection with forging a after market tie up with Hindustan Motors for supplying high performance lubricants for the complete range of Mitsubishi vehicles in India said , the 150-year-old Motul is the fastest growing premium brand in India. Barring J & K, ALSL covers the entire market with 31 distributors and 200 consignment stock points.
The Rs 6,000-crore lubricants market has over 30 players but dominated by public sector oil companies. Motul figures in the list of brands having 1% market share. Of the total production of 1.3 million tonnes, 20% is unbranded. But, he expected the share of branded business to grow in the coming years.
Motul is one of the oldest lubricant companies, established in 1853. The brand has a history of technical innovations and is present in more than 80 countries. It had pioneered the introduction of 100% synthetic ester based lubricant. It has partnership with global auto majors and is closely associated with Motor sport. It is the only lubricant company to have a partnership with Bosch group.
Since April 2003. Motul is produced and marketed by Atlantic Lubricants and Specialities, part of Standard grease group, Mumbai. ALSL has a full-fledged high-tech facility in Silvassa, Mahararashtra.
ALSL has a three-year technical licensing agreement with Motul to manufacture and market Motul products in India, Bangladesh, Sri Lanka, Nepal and Bhutan.
It is learnt from industry circles that next year, Motul will consider strengthening its operations and brand reach in these markets through a joint venture with its financial participation.
When queried on this, ALSL Chief Executive officer, Ashwin R Pandit declined to comment. " Motul is already investing on the brand and it is quite bullish on the lubricants market in India with all vehicle segments recording robust sales this year", he told ET.
Pandit, who was in Chennai recently in connection with forging a after market tie up with Hindustan Motors for supplying high performance lubricants for the complete range of Mitsubishi vehicles in India said , the 150-year-old Motul is the fastest growing premium brand in India. Barring J & K, ALSL covers the entire market with 31 distributors and 200 consignment stock points.
ADVERTISEMENT
The Rs 6,000-crore lubricants market has over 30 players but dominated by public sector oil companies. Motul figures in the list of brands having 1% market share. Of the total production of 1.3 million tonnes, 20% is unbranded. But, he expected the share of branded business to grow in the coming years.
Motul is one of the oldest lubricant companies, established in 1853. The brand has a history of technical innovations and is present in more than 80 countries. It had pioneered the introduction of 100% synthetic ester based lubricant. It has partnership with global auto majors and is closely associated with Motor sport. It is the only lubricant company to have a partnership with Bosch group.
V V S Vijyakumar, Vice-President, Chennai car plant-HM said the agreement is a timely one when the premium range of cars like Lancer, Pajero are seeing perked up sales of 300 to 400 cars a month. Lubricants played a major role in extending the life of modern engines.
"The agreement is in line with our efforts to ensure efficient after sales and service delivery to customers. With Motul Lubricants directly reaching our workshops and dealers, we can reduce distribution cost", he said.
Jiten Goswami, Chairman, ALSL said this is the third after market agreement signed by the company after Mercedes Benz and Skoda India. It is meant to benefit the customers of HM and Mitsubishi. Motul products have been designed to meet the specific requirements of Mitsubishi cars and deliver superior performance, he said.
Start a SIP with as low as ₹500 with ET Money App!
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
