PETRONAS Lubricants International gears up for next phase of growth in India’s lubricants market
Amir Hamzah Azizan, PLI Group Chief Executive Officer, announces aggressive growth strategy during ‘Bhoomi Poojan’ ceremony of new lubricants blending plant in Mumbai, India.
PETRONAS Lubricants International (PLI) today officially launched its state-of-the-art lubricant blending plant in Maharashtra Industrial Development Corporation (MIDC) Patalganga. The USD50 million-plant investment is an essential driver that will help propel PLI’s position as a formidable lubricants player in India. The new plant – constructed on 25 acres of industrial land at Patalganga MIDC – with an estimated production output of 110 million litres of lubricants, is expected to commence operations by end 2017.
Amir Hamzah Azizan, PLI Group Chief Executive Officer, inaugurated the ‘Bhoomi Poojan’ (groundbreaking) ceremony at the site of the new plant along with Giuseppe Pedretti, PLI Regional Head of Asia and MP Singh, PETRONAS Lubricants (India) Pvt Ltd (PLIPL) Chief Executive Officer. The ceremony was also attended by Giuseppe D’Árrigo, PLI Regional Head of Europe, Members of the PLIPL Board and senior dignitaries from PLIPL and MIDC.
“PLI has very aggressive ambitions to be amongst the world’s top lubricants player by 2019. India is without exception a very important market for us here in the Asia region and we are confident of the potential ahead of us. Therefore, we have embarked on a solid growth plan to accelerate our business here in India, starting with investments into the new plant that is equipped with world class lubricants blending facilities and equipment, highly automated production line, and increased storage tanks. We have also embarked on a new route-to-market approach that will see us transform the way we do business with our distributors and retailers in the high-street business,” said Giuseppe Pedretti, PLI Regional Head of Asia.
Since its inception in 2006, PLIPL has recorded steady volume growths at 40% CAGR and is aiming to capture 5% total market share by 2019. “In India, the growing economy and emerging middle class will continue to contribute to a robust automotive market growth. With a market size of 2.5 billion litres and lubricants demand projected to grow at 2.3% CAGR, India is the world’s 3rd largest lubricant market behind USA and China. PLIPL is now entering the next wave of growth in line with our aspiration. We need to be innovative, differentiated and focused in growing our market share, especially in the highly competitive high street market, therefore it only makes sense to increase production and revamp the way we go to market,” said MP Singh, PLIPL CEO.
The new route-to-market approach entails a change in PLI’s business model in India, operational optimization, and most importantly, the establishment of a solid foundation for effective brand building. “This approach will enable our distributors to improve ROI through high efficiency management, enhanced professional selling skill and toolkits, and more resource support from the PLI Group,” said MP Singh.
“All these efforts – investment into a new plant, brand building, talent acquisition, and renewed route-to-market approach – signals PETRONAS’ commitment and seriousness in our business in India. It is our hope to foster long term partnership with key distributors who share the same vision and aspirational growth, and can go the distance with PETRONAS’ belief in technology as a key differentiator and enabler in the lubricants industry,” said Amir Hamzah Azizan, PLI Group Chief Executive.
Photo Caption: (L-R) Giuseppe D’Árrigo, PLI Regional Head of Europe, MP Singh, PETRONAS Lubricants (India) Pvt Ltd (PLIPL) Chief Executive Officer, Amir Hamzah Azizan, PLI Group Chief Executive Officer and Giuseppe Pedretti, PLI Regional Head of Asia at the inauguration of PETRONAS’ new lubricants blending plant in Maharashtra Industrial Development Corporation (MIDC) Patalganga.
About PETRONAS Lubricants International
PETRONAS Lubricants International (PLI) is the global lubricants manufacturing and marketing arm of PETRONAS, the national oil corporation of Malaysia. Established in 2008, PETRONAS Lubricants International manufactures and markets a full range of high-quality automotive and industrial lubricants products in over 80 markets globally. Headquartered in Kuala Lumpur, PLI has over 30 marketing offices in 23 countries, managed through regional offices in Kuala Lumpur, Turin, Belo Horizonte, Chicago and Durban.
Currently ranked among the top 15, PLI is driving an aggressive business growth agenda to secure its position as a leading global lubricants company.