Caltex Lube, a product of Chevron, is returning to India after a 12-year hiatus, and HPCL will sell it

26 Oct 2023 , 11:24 AM

After a 12-year absence, Chevron Corporation, the second-biggest American oil firm, is returning to the Indian lubricants sector.

A 10-year long-term agreement has been reached between state-run Hindustan Petroleum Corporation Ltd (HPCL) and Chevron Brands International LLC (Chevron), a subsidiary of Chevron Corporation, to license, produce, distribute, and sell Chevron’s lubricant products under the Caltex brand. On Wednesday, the firms formally introduced the Caltex brand to the Indian market.

Caltex lubricants will be produced in HPCL’s cutting-edge Silvassa manufacturing facility. Lubricating oils can be produced at the plant at a rate of 75 TKLPA.

‘From a lubricant standpoint, the growth in terms of industrial and commercial vehicles is very significant, especially when you think about globally, where demand is going down in some parts of the world. We see India as a strategic growth market.’ Demand will keep rising in this case. Therefore, we were interested in entering this market,’ said Chevron International Products Vice President Danielle Lincoln.

Lincoln continued, saying Caltex hasn’t visited India since 2011.

‘We evaluated our portfolio, just like any other business would, and decided that we could spend the resources elsewhere. Thus, we departed from the Indian market. However, we’re returning through this partnership model now,’ Lincoln stated, noting that the business operates a similar strategy in South Africa, as well as in several regions of Europe, Turkey, and South America. ‘So we know how to do this model and we have seen it to be very effective.’

Chevron is a multinational distributor of finished lubricants, operating ten sites and twenty-five blending units worldwide. Chevron’s exclusive Havoline and Delo-branded lubricants will be sold in India thanks to the arrangement.

Lincoln continued by saying that the business will find and introduce additional items to the market in addition to HPCL. Caltex currently provides lubricants for industrial machines, commercial automobiles, and personal vehicles.

Additionally, the companies planned to introduce suitable goods for the future of the electric vehicle industry.

The lubricant market in India is the third largest in the world by consumption and is among the fastest-growing in the globe.

There are about a thousand competitors in India’s lubricants sector. There are about forty leading players in the market. With a 17% market share, HPCL is in charge.

‘I don’t understand how HPCL and Caltex are at odds with one another. We will be able to meet the whole range of client needs thanks to this relationship,’ stated Amit Garg, Director of Marketing at HPCL.

For its lubricants business, HPCL is currently separating into a distinct subsidiary and is looking into other options, such as demerging or listing it.

According to HPCL’s annual report, its 100% subsidiary in Dubai has achieved the largest sales in the company’s history in the lubricant market to nations in the Middle East and Africa.

A completely owned subsidiary of HPCL, HPCL Middle East FZCO (HMEF) distributes lubricants and other petroleum products in a number of Middle Eastern and African markets.

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