Bharat Petroleum offers a full range of Automotive Engine Oils, Gear Oils, Transmission oils, Specialty Oils and Greases. The correct usage of these Lubricants of right quality ensures prolonged and trouble free vehicle operation, providing maximum benefits to the users of present day modern vehicles.
In line with the economic liberalisation in India, Lubricants was the first downstream Petroleum product to be totally deregulated with effect from 1991. Since then a large number of players - National, MNCs as well as Global Players - have entered the Indian Lubricants market. Despite operating in a totally competitive environment, BPCL's Lubricants SBU has been registering a growth in lubricant sales continuously over the past couple of years. In 2007-08, an overall growth of 10% has been registered, with a healthy turnover of Rs. 1680 crores (approx USD 350 million).
In 1998, we re-launched our Lubricants in new attractive packs, mainly in Automotive category with three major brands depicting each segment- Mak for Diesel Engine oils, Automol for Petrol Engine oils and Glide for Two/Three wheelers(mainly 2T then). In the year 2003, we decided to go for Umbrella Brand-MAK Lubricants, in subsequent years, branded all our industrial grades with MAK.
Our core strength is our retail outlet network across the country, this comprises of about 7530 retail outlets. Our Lubes SBU have undertaken various initiatives in co-ordination with Retail Business to grow our sales volume through this channel. Initiatives undertaken by the SBU are setting up of Hero Honda City Works, Tata Authorised Service Station (TASS) and installation of Quick Oil Change Machines at retail outlets.
With a network of 190 PLDs, 600 MAK Garages and MAK Mobile Vans established to improve reach and penetration in rural and unrepresented areas of MAK Brand, the SBU could reach to the last mile as far as the customers are concerned! We continue to improve our brand visibility across the network and there by increasing our market share across the segments.
Large number of prestigious customers has been added during the year to our already existing prestigious customer list. We are also suppliers of initial engine oil fill to TATA Motors, TVS, Hero Honda etc. We also hold respectable share of Railway and Defence business.
The Lube Plants at Wadilube (Mumbai), Budge Budge (Calcutta), Loni (Delhi) and Tondiarpet (Chennai) have organised themselves as close-knit teams to maximize levels of production and despatch. The Plant at Wadilube is an ISO 9002 certified plant. As part of the ongoing improvements in packaging, the new series of packages developed entirely in-house have been introduced.
To support the business initiatives, a major thrust has been given to improving BPCL’s product offering and increases its market presence. The new R&D Center at Sewree, Mumbai, has developed a number of new products in the automotive and industrial categories. Towards higher visibility, substantial investments have been made in revitalising the brands through product quality and package improvements. The entire distribution system has been revamped with the formation of Supply Chain Management department to ensure that products are more conveniently available and distinctively visible in the market price. Exclusive branded Lube Shoppe's have been opened all over the country to improve our reach, as well as many innovative & unconventional methods are being used to create brand awareness especially in the diesel oils segments.
Another major initiative has been to reach the products to the rural population through the tie-up with ITC – e-choupal network which has spread the MAK brand across the country in rural areas also. Currently this network is available in Uttar Pradesh, Maharashtra, Rajasthan, Madhya Pradesh and is likely to extend to other states also shortly.
MAK also embarked on another thrust area of enrolling garages across the country in the network of “MAK Garages” there by providing standardized service across the network. This initiative not only provides opportunity for the garages to enhance their business opportunity but also provides an assurance to the end customers that their vehicles are getting the right kind of lubricants.
To promote MAK brand among the youth and improve the brand visibility, MAK signed up M.S.Dhoni as Brand ambassador in the year 2006. The rise of MAK brand in the minds of the consumers as well as market share coincided with the rise of Dhoni also, who today is the Youth icon of the year and also the Captain of the Indian team for all versions of the game – like MAK being the “Champion of All Engines”.
BPCL is confident that it will continue to make substantial and sustained efforts with appropriate investments, synergise business between channels, improve quality and quantity standards, invest in R&D for new product development and aggressively build the brands to result in maximising the value addition for both the business and its customers.