Spains Repsol Enters Indian Market
Published By : 18 Jun 2015 | Published By : QYRESEARCH
Repsol, the largest petroleum company in Spain has entered into a partnership with UAE based GP Petroleum Ltd. to double its lubricant business within a span of ten years. Last year, GP Petroleum acquired SAH Petroleum in India. Its partnership with Repsol is being seen as a move to build its position in the growing automotive lubricants market in the country. Presently, GP Petroleum is an average player in the industrial lubricant market in India through its brand IPOL. With this partnership, the company is planning to manufacture Repsol lubricants at its plants located in Vasai and Daman. It also plans to establish a separate plant of 100,000 capacity on the outskirts of Pipavav. The new plant will be started with an investment worth Rs 125 crore and will be commissioned in the next 9-12 months.
Both the partners are aiming to gain at least 5% share in the Indian automotive lubricant market by the end of the decade. If this partnership is successful, it will lead to India becoming the second largest lubricant market for the Spanish firm. According to Carlos Pascual, the International Manager Lubricants, Repsol required a strong partner with the knowledge of Indian market as the market has been quite a challenge for the new entrants. He further added that with the country’s economy pacing up, Repsol is interested to play a role.
Under the agreement, GP Petroleum will secure the formulation of Repsol and blend on behalf of the Spanish enterprise. The marketing of the Repsol brand will be jointly done by both the partners in terms of expenditure. Presently, Repsol has 30 distributors across the nation, which market the IPOL lubricant to industrial and automotive segments. The partnership will see Repsol offering its products to all the segments of the automotive industry and challenge the well-established brands such as IndianOil and Castrol.