Valvoline is a well-known lubricants and solutions provider for a wide range of applications. The American Company, established way
back in 1866, is a leading producer, distributor and marketer of high quality lubricants and specialized automotive, commercial and industrial solutions. In India, Valvoline Cummins Ltd. (VCL) which was set up as a joint venture between Valvoline International Inc., USA, a 100 per cent subsidiary of Ashland Inc., USA, and Cummins India Ltd. in 1998 has emerged one of the fastest growing lubricant companies in the country.
We spoke to Mr. Vikas Kapur, Asst. Vice President & Head, Cummins & Industrial, Valvoline Cummins Ltd., in a one-to-one interaction to find out about the Company journey since inception and the latest developments therein.
Valvoline Cummins has made significant inroads into both the on-highway and off-highway vehicle segments in a decade-and-a-half in the Indian market. Says Mr. Kapur: “Valvoline has been registering double-digit growth in the past 12 years. With a strong network of around 400 distributors who work with over 50,000 retailers and 38 C&F agents across the country, we are able to connect better to our customers by reducing the lead time. Our growth in the on-highway segment has been very strong, especially on the heavy-duty trucks side, with our 50,000 retail outlets fully equipped to cater to the demands in the segment.”
In the right direction
VCL, despite being the newest among the lubricant multinational companies to enter the Indian market, has built strong partnerships 
with OEMs across different segments. The Company made an entry into the construction and mining segment four years ago and currently offers a complete range of solutions catering to all the requirements in this space. In the process, it has partnered leading construction companies like L&T, IVRCL, ILFS and JKC, among others, and also works closely with reputed OEMs like Terex, AMW and Cummins. While VCL is in talks with Daimler and Scania on specific projects, its latest major OEM approval on the ‘on-highway side’ has come from Tata Motors, which marks a very important breakthrough for the Company.
VCL has made tremendous progress in the motorcycle segment as well with its range of motorcycle oils (MCOs) performing very well in the market. “The USPs for our growth in the MCO segment are very strong, and the superior products are backed by our aggressive marketing programs and wide market reach. We have launched our ‘Bike Expert Programs’ which give a lot of visibility to both Valvoline and our set of mechanics in the aftermarket”, he says.
VCL also offers professional training for mechanics which includes hands-on sessions at a Cummins manufacturing facility. After the training, the mechanics receive a certificate that qualifies them for professional service of on-road trucks. On the car care side, VCL offers ‘Car Brite’ products specially designed for automotive cleaning and maintenance.
The R&D way
As a division of Ashland Inc., Valvoline operates a global network of R&D laboratories, with distribution and customer services in more than 140 countries. Due to Company’s sustained focus on R&D, the Company proved itself the first to introduce ‘CI 4 Plus’ engine oils in the Indian market, while its Unique Detergent Dispersal (UDD) technology for better cleanliness has been recently approved by Tata Motors in the ‘on-highway segment’. VCL is also working on a combination of gear oil and engine oil that offers increased fuel savings and the same will be launched in the market very soon.
As one of the top three players in the diesel engine oil segment in India, VCL plans to have greater focus on the ‘on-highway segment’. VCL has joined the bandwagon of successful companies which have undertaken research on the alternative fuel side. “We are in talks with almost all players in the on-highway truck segment and will become more aggressive in this space in the coming years. And, since alternative fuels are the need of the hour, we are working on research on different fuel options as well. Very soon, we will be setting up a molecular research laboratory in India, an extension of our existing set up in the US”, adds Mr. Kapur.
In 2013, Valvoline had set up a few months back a new manufacturing and packaging plant in the Ambernath Industrial Area, near Mumbai. The plant spread over 10 acres, produces Valvoline automotive lubricants for consumer, industrial and heavy-duty markets. The Company invested $30 million to set up the plant with huge capacities, and it is one of the most modern facilities in the country with high levels of automation with minimal manual intervention.
The initial annual production capacity of the plant is 120 million litres which is expandable to over 160 million litres to meet the growing demand. At present, the plant produces 80 million litres annually while VCL aims to reach the full capacity in the next four years.
VCL’s growth in terms of OEM approvals, sales and volumes has been accompanied by a significant growth on the financial side as well. For the year ended September 2013, it registered an impressive growth of nearly six per cent over its previous year turnover, despite the prevailing tough market conditions during the period. Buoyed by its growing list of OEM approvals, new and innovative product offerings and aggressive marketing in the aftermarket and consumer segments, the Company is poised to maintain its strong growth rate over the coming years, as it targets a significant market share in the highly competitive lubricant space in the Country.