'GS Caltex Lubricants ensures a sustainable performance in all its initiatives".
Q. How is GS Caltex India unlocking growth opportunities in the Indian Lubricant market?
According to the Asian Development Bank, the Indian economy is expected to grow by approximately 6-8% in the next 5-6 years till 2030 , endorsed by increasing public investment in infrastructure and a pickup in private sector investment. As per current projections, the highway construction industry will register a tremendous growth of 133% by 2025, which is higher than any country in the world in recent times. India aim to reach a target of 90-95 km of construction per day . The Indian mining and construction equipment (MCE) industry maintained its strong growth momentum during the first half of this fiscal. The industry posted an impressive growth of 26 per cent in FY23 with total volumes crossing the one lakh unit mark.
GS Caltex being one of the leading MNC Lubricants Players to support Indian Construction and Mining segment is well leveraging the growth potential of the demand existing in market . One critical element to ride the tide is to provide high performance lubricants coupled with value added services which GS Caltex has been able to provide to Indian Industry . GS Caltex finished lubes has the advantage of using highly improved KIXX LUBO Base Oils with superior characteristics necessary for efficient operations in construction and mining industry.
Q.How is GS Caltex India positioning for growth in the fast changing Lubricants market and How is your organization committed to responsibly meeting the world’s energy needs?
Construction equipment can perform better based on right choice of Lubricants . That’s why GS Caltex have invested in millions of testing hours to prove that its flagship brand Kixx lubricants provide engines and transmissions with superior protection to extend equipment life and reduce downtime. In last 10 years of our presence , we could associate with many major OEMs and Key Accounts in Indian market which is a testimony of our growth . Lower carbon footprint is key to sustainability. Although fuels used in the transportation sector contribute to the majority of the carbon footprint, lubricants can enable lowering the fuel consumption. Therefore, lubricant manufacturers like GS Caltex are critically reviewing high-performance climate friendly options for their raw materials starting with base oils.
Manufacturers are also focussing on sustainability measures such as recycling and reuse of industrial lubricants to reduce carbon footprint. Lubricant manufacturers also have started providing onsite and offsite lubricant recycling equipment and services to their customers. With the use of specialty additives and synthetic base oils, companies like GS Caltex are formulating industrial lubricants with better efficiency to address the issue of environmental protection and sustainability . GS Caltex Lubricants ensures a sustainable performance in all its initiatives which includes Plastic Recycling, Energy Savings and Conservations. Responsible Sourcing, Green Logistics Partnerships, Waste Management, Bio-diversity Conservation to name a few . GS Caltex is committed to promote circular economy.
Q. According to you, How has been 2023, Hard or soft landing for the Lubricants market?
In line with impressive growth in Construction Equipment Industry, GS Caltex has been witnessing significant growth of its Finished Lubes business in 2023-24 . More OEM Partners are joining the band wagon for world class KIXX branded Lubricants mainly because every business in mining sector is under increasing pressure to lower operating costs and increase efficiency. This often means doing more with fewer people and using equipment for longer duration. This challenge has prompted increased attention to lubrication and its role in equipment reliability and expense . GS Caltex Construction Lubricants Portfolio focuses on all types of costs including Product Cost , Maintenance Costs and Administration Costs there by reducing the Total Cost of Ownership for a business house . The last quarter data just recently published pegged India’s GDP growth at 7.6% and at current rate we are growing much faster than Industry average growth in Lubricants Industry.
Q. How GS Caltex is the complete engine solution for premium rides?
Due to stricter emissions norms like Stage V setting in , off highway equipment industry is witnessing fast paced technology changes as far as Lubricants specifications are concerned . Increased use of DPF in vehicles have become common now . The trend in off-highway equipment lubrication is shifting towards the increased use of lower SAPS lubricants as we see a higher proportion of DPF fitment on new Stage V equipment which needs the adequate protection. By restricting ash build-up in DPFs, lower SAPS lubricants can act as catalyst to reduce unplanned maintenance costs, downtime and any risk during warranty period .
GS Caltex is partnering in developing High Performance Kixx Lubricants in CK4 and FA4 categories for Indian market . GS Caltex also has made consistent R&D efforts to develop eco-friendly lubricant products that can maintain engine oil performance. As a result, hybrid-specific Kixx HYBRID engine oil was launched in 2020, EV-specific Kixx EV engine oil was launched in 2021, and ‘Kixx BIO1’, Korea’s first eco-friendly engine oil made from plant-based raw materials, was launched in 2022.. GS Caltex has consistently pursued R&D and open innovation to uncover R&D opportunities and secure differentiated technological capabilities in a wide range of fields, including hydrogen, Carbon Capture & Utilization (CCU), and eco-friendly asphalt / polymer products.
Q. What is the global outlook of GS Caltex to 2030. How is GS Caltex going to expand over the next five years?
GS Caltex intends to consolidated its position in India market by closely working with OEMs and Large Accounts . Globally several new eco-friendly lubricants including Bio-based category are getting developed in our South Korea Daejon R&D which should help improve global positioning for us a responsible supplier reducing carbon footprints . As India is poised to become 3rd largest economy , GS Caltex India intends to maintain the momentum by partnering with off highway OEMs. Several key initiatives are also in pipeline for strengthening our Eco-friendly Lubricants Portfolio across the globe which is planned to be displayed during EXCON.
Q. How is ‘Make in India’ fueling the power in India’s Lubricant Market and do you want to see any changes from the government side in 2024 to boost the market?
I’m very sure that with the new government coming in, the Make in India programme is going to get further boost. Even for the lubrication sector, in past few years, we’ve seen few investments coming in. I think the facilities will all be modernised to manufacture the products, which will be meeting the upcoming emission norms rather than putting in new investments. Also , Government push in Infrastructure sector is driving the market for construction equipment . Road construction , Mining and Infrastructure segment are driving the growth of construction equipment which in turn push demand for Lubricants , which is our core area of focus . According to one leading rating agency , Mining Construction equipment industry is expected to grow by 26% in 2023-24 itself .
Moreover, rapid urbanization , abundance of foreign investments and surging demand for responsive equipment are few of the other major factors expected to boost demand for construction equipment in India in the coming years. Increasing number of public private partnerships and government initiatives such as smart city, housing for all , port connectivity , coastal roads, railway safety implementation etc would also enhance the construction equipment market in India during next few years.
