Nandan Petrochem Ltd. (NPL) has become a prominent fluid supplier in recent years thanks to its technical collaboration agreement with Avista Oil GmbH (Germany) that enables them access to the latest technologies. The company marketed its complete product range starting from lubricants, greases, transformer oil, white oil / liquid paraffins, rubber process oils to specialty lubricants under the brand Velvex at the ACMA Automechanika new Delhi.
“We are putting a lot of efforts and investments in developing the Velvex brand by providing the market a quality solution in the mid-segment, which is filled with either local brands or MNCs. We have explored the space available in between by adding value and offering premium quality at competitive price point. The JV with Avista Oil GmbH helps us leverage the technical inputs from them in formulation to reduce the gestation period require to build a new product when we speak to OEMs,” expressed Mr. Nandan S. Agrawaal, Managing Director, Nandan Petrochem Ltd.
On the AdBlue front, NPL BlueSky Automotive is a Technical JV between Nandan Petrochem Ltd. (NPL) and KRUSE Automotive GmbH, Germany, to manufacture and market AdBlue (AUS32/DEF) in India. As early as in 2011, when India decided to implement BS-IV in 13 cities, NPL BlueSky Automotive commissioned the AdBlue manufacturing plant in India, thereby today a pioneer and largest manufacturer of AdBlue in India. They have also got a direct approval from VDA to become the primary holder the trademark AdBlue in India. “In line to also assert our leadership position we have been certified by VDA by audits of our plants and gave us the direct license to own the trademark AdBlue brand in India. Thanks to our highest quality standards, we are catering to around 60 per cent of the market in India as of today for AdBlue and only see this growing exponentially as soon as the BS-VI regime sets in.”
According to Mr. Agrawaal, the demand for AdBlue is bound to accelerate in tune of 1 million KL in the next 2 years from the current volume of 150,000 KL. NPL is already under the capacity expansion phase. Mr. Agrawaal informed: “Once BS-VI kicks in all the OEMs have to adopt to SCR technology and the requirement for AdBlue is likely to increase further once passenger cars start using SCR technology for NOx reduction. We already have four plants and the next phase of expansion will add four more plants in the next two years to cater to the growing demand.” The company has also factored in their stock points and distribution network. “We have 14 stock points in the country and 200 distributors PAN India and with the current growth rate of 35 per cent on the lubricant side and close to 100 per cent on the Adblue side, we will see the distributors grow to 500 numbers. While we will be closing at around Rs. 650 crores in FY18-19, from Rs. 350 crores in FY17-18, we expect to achieve Rs. 1,000 crores by FY19-20,” stated Mr. Agrawaal.