This February marks the 10th anniversary of GS Caltex India. Since its formation in 2010, the company has grown from just three employees to over 80 and has built up an impressive client base including automotive & construction equipment OEMs, mining companies, mobile tower companies and many other industrial customers. Today, GS Caltex India has established itself as an award-winning and leading provider of lubrication solutions with pan-India operations and warehouses at key locations to service the needs of customers.
N.Balasubramanian caught up with Rajesh Nagar, MD & CEO, GS Caltex India, to find out more about the organization’s successful first decade and future plans for the Indian market.
Congratulations on completing 10 successful years in the Indian market. How would you describe your journey thus far?
GS Caltex, headquartered in Seoul, South Korea, is a leader in the petroleum, lubricant and petrochemical businesses. It operates the fourth largest refinery in the world at 790,000 barrels per day and is the largest producer of aromatics products globally. The company is a major exporter of petroleum products including lubricants. Building on this competitiveness the company decided to venture into large overseas markets like India, Russia, China and many other countries which is how the Indian subsidiary was established in Mumbai in February 2010, thus marking the beginning of our Indian journey.
We as a company have been on a challenging yet wonderful journey. GS Caltex in India may have been present only since 2010, but Caltex in India has had a brand legacy of more than 80 years associated with quality and consistency. Caltex as a brand has also been very strong among OEMs not only in India but also at a global level. This has helped GS Caltex India to forge relationships with some of the leading global OEMs from the initial days itself.
The Indian lubricant market is one of the most competitive and toughest markets in the world. For a relatively young company like ours, we have managed to make our own place in the Indian lubricant industry on the strength of our superior technology and products. GS Caltex India might be the only company in India to manufacture high quality premium lubricants using only group II plus/group 3 base oils imported from its own refinery.
How do you view the current economic scenario in the country?
The Indian economy is facing extremely challenging times in terms of keeping the growth rate up. The automotive and allied industry is going through a major transition in terms of emission norms and technology in terms of BS-VI coming into effect from April 1 and the transition from combustion fuels to EVs respectively. However, the Finance Minister and the Minister for Road Transport and Highways have both underlined infrastructure development as a core area for investment. The Government plans to invest Rs. 100 lakh crore (USD 1.45 trillion) for infrastructure development alone over the next 5 years. Thus the Government’s impetus to infrastructure development in the areas of energy, roads, urban development and railways will augur well for the Indian economy. We are therefore extremely bullish about economic recovery in the near term.
Where do you see growth coming from for GS Caltex India in the next decade?
Research and development is the core strength of GS Caltex in developing product competitiveness for lubricants and polymers. GSC R&D facility located near Seoul in South Korea has developed many award-winning lubricants to forge partnerships with major Global OEMs. Our future ready product portfolio is a major dimension of our growth strategy.
At the recently held EXCON, GS Caltex India showcased its futuristic portfolio meeting BS-VI standards which includes BS-VI compatible engine oils Kixx HDX Euro CK-4 15W-40, extra long life high performance hydraulic oil Kixx HVL range and high performance fully synthetic gear oil Kixx GearSyn GL-5 75W-90.
Recently, we have also launched our polymer product portfolio in India. GS Caltex India has also been identified as a major subsidiary in the global GS Caltex network and been tasked with a foray into the African market. With these new launches and expansion of sales network, we believe GS Caltex will become a major player in the Indian and African markets.
In the coming decade, GS Caltex India will continue to invest towards new technology and superior products catering to existing and new segments with the objective of adding value to our customers and stakeholders.