There is enough material business to grow the value pool in India - Deepesh Baxi

Deepesh Baxi CFO & Wholetime Director Castrol India Limited

- 

What is your outlook on the automotive and industrial lubricants sector?

As per internal estimates, short term view for automotive and industrial lubricants consumption is flattish as compared to 2019.

As the economy slowly moves to normalcy post the pandemic, we are confident of an exciting phase for the lubricants industry in India in the mid to long term. With demand for lubricants expected to grow driven by vehicles sales, technology advancement in the segment will lead to reduction in consumption per vehicle and higher quality lubricants to meet new emission norms, which we are currently providing to consumers, including BS VI compliant engine oils.

According to internal estimates, the global car parc stands at 1.2 bn today which are primarily ICE (Internal Combustible Engines) vehicles which will come down to 0.9 bn by 2040. This will certainly present a large car parc which needs maintenance and servicing in the days to come. Also, in India given the very low car penetration which is 22 per 1000 compared to 900 per 1000 in the Western developed markets, there is ample headroom for growth of ICE vehicles. So, we are confident that there is enough material business as a leading lubricants player in the country to grow the value pool in India for the next two decades.

Castrol India reported an 81.33% rise in consolidated total sales revenues for Q1FY22 and net profit stood at `140 crore, growing by 114.1% on a YoY basis. What factors have contributed the most to help you outperform?