India's state-run Hindustan Petroleum Corporation Ltd (HPCL) announced it is expanding its lubricants business in India's neighbourhood. After launching its lubricants in Myanmar last month, India's third-largest fuel retailer (after Indian Oil (IOCL) and Bharat Petroleum (BPCL)) is working on marketing its lubricants in Nepal and Bhutan as well as looking at resuming sales in Bangladesh soon, according to the Times Of India.
"We are the largest lubricants marketer (including base oil) in India. We are now looking at markets beyond the country's boundaries to sell finished products as they bring more value," HPCL chairman and managing director M K Surana told the Times Of India. Lubes account for nearly a quarter of the company's profit.
HPCL operates a lube base oil plant, the country's largest, in Mumbai with a capacity to produce up to 9,400 barrels per day, consisting of 4,900 bpd of Group I base oil, 4,000 bpd of Group II base oil and 500 bpd of Group III base oil.
"We supply base oil for many major brands in the Indian market. We want to run our lubes refinery at the brim. We are looking at expanding the market for products which is more profitable than selling base oil," Surana said.
Director (marketing) S Jeyakrishnan said HPCL is going on its own in the new markets instead of tying up with local partners. "We are appointing dealers through advertisements taken out in consultation with our embassies," he said.
The company reported a net profit of Rs 1,735 crore (US$266.4 million) in the second quarter, marking a 147% increase over the previous corresponding period. Gross sales increased to Rs 54,153 crore from Rs 47,750 crore in the same period last year.