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July 4, 2022 1:07 pm

Vivek Tomar remains optimistic about the growth of construction OEM market and points out that in the reference to construction pace three years prior to Covid, growth rate in the OEM sector has increased by almost 20%.

 

Through your oil and Lubricant products how you are facilitating the OEM requirements?

 In the lubricant’s overall ecosystem, OEM business plays a very important role. Lubricant is a critical component of any machine and construction OEMs require lubricants to be filled in while manufacturing. The lubricant ecosystem is made up of various components and one critical component is to drive technology. To support all technical needs, Gulf Oil has a very strong technical team. Further, the OEMs also require a very strong supply chain network to meet their lubricant requirements across the country. We support our OEMs with our strong supply chain network spread across the country. Currently, we are supplying to more than 7500 sites in India – the highest by any company.

OEM association adds a lot of technical expertise and credibility to a brand and changes the way the brand is perceived. Gulf Oil as a company has a segment focused approach, and we have tie-ups with various OEMs. We have a very unique model for OEMs and we approach them with a value added proposition. We create a positive synergy for OEMs and become a part of their growth journey.

 

Tell us about the current OEM markets and its challenging scenarios? 

The current OEM market in the context of the construction industry has been doing well. Growth rate has increased by almost 20% of the pre-Covid years. However, when COVID occurred, we encountered numerous issues. The Indian construction equipment industry is the 3rd largest in the world, after China and the US. According to our government’s 2030 vision, Indian OEM sector is poised to become 2nd largest. We produce nearly 80,000 machines per year, which will double in 7 to 8 years. There are a lot of issues that have come up as a result of external factors. There are also many challenges, such as supply chain, technological advancement, and stricter emission standards.

 

What kind of business expansion, you see in concern to OEM ? 

Gulf Oil has a segment focused strategy. This is one of the main mantras for our development. While the industry grows at 2 to 3 percent, Gulf Oil witnessed a growth rate of 2x to 3x over the last decade. Infrastructure is a critical sector for our overall brand growth. We have a clear plan. We will, without a doubt, contribute to the overall ecosystem. And so, we’ve partnered with some of the key OEMs in India and are in the continuous process to expand our presence. It is high time for us to go more aggressive with volume building and assisting our OEM partners to truly increase their share of wallet. At the same time, we participate in all new technology upgrades and reach out to more OEM partners; to help us grow our brand in the future.

Various strategic decisions are in the pipeline, to be implemented in the coming months. We have been taking initiatives in establishing our greater presence in the Indian subcontinent (as the majority of these OEMs are based in India).

We also ensure to participate in the sustainable development and have launched AdBlue Ecopro, a product that assists construction equipment in reducing NOx emissions. This is in-line with the emission norms under BS IV and BS VI standards. We are the forerunners to introduce AdBlue in India, and it will be made widely available to our OEM partners through our network spread across the country. We will keep you updated as we participate in these initiatives and bring our unique value proposition to our consumers and OEMs.

“We are ready for our sustainable journey. Together with our partners, we are moving towards a better tomorrow.”