The Mumbai-based manufacturer of lubricants and electric vehicle (EV) fluids is set to boost its manufacturing capacity by 70% to support its growth objectives over the next three to four years. Chawla noted that demand remained robust in April and May despite rising raw material costs associated with higher crude oil prices.
Gulf Oil achieved record volumes in FY26, with lubricant volumes climbing 10.5% for the full year and 14% in the March quarter, while the industry is estimated to have grown by 3-4%. The company expects that its increased capacity and enhanced market presence will sustain its growth well above industry averages in the current fiscal year.
The expansion at Gulf Oil coincides with both of its manufacturing plants operating on a three-shift system. The additional capacity is intended to facilitate future growth while enhancing operational flexibility.
Gulf Oil Lubricants India currently boasts a market capitalisation of ₹4,525.59 crore, with its shares having fallen over 26% in the past year.
The company is also addressing rising input costs across packaging materials, base oils, and additives. Chawla characterized the increase as unprecedented, noting that Gulf Oil has enacted price increases across both consumer and business segments to safeguard its margins.
Despite these cost challenges, Gulf Oil remains confident in its supply chain capabilities and its ability to service more than 40 original equipment manufacturer (OEM) partners. The company believes that supply security is a key differentiator for its customers and distributors.
The agriculture sector continues to perform strongly, bolstered by both OEM workshop demand and retail sales. Chawla indicated that Gulf Oil is expanding distribution channels and launching new products to enhance its presence in this sector.
Chawla mentioned that the company is gearing up to enter the emerging data center liquid-cooling market. Gulf Oil has developed two cooling-fluid products and is currently conducting validation tests with prospective clients.
However, Chawla acknowledged that data center cooling represents a small opportunity compared to India’s overall lubricants market. Even with the widespread adoption of liquid cooling, this segment is projected to account for less than 1% of the nation’s automotive and industrial lubricants demand in the coming years.
For the full interview, watch the accompanying video
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