We Want To Cater To 100 Million Consumers In India: Shell Lubricants
Shell Lubricants India is a 100 per cent subsidiary of Royal Dutch Shell and is one of the leading oil and gas major which have invested multi-billion dollars into the Indian market. In an interview with BW Businessworld, Mansi Madan Tripathy, MD, Shell Lubricants India said her vision is to cater to 100 million customers in the near term.
Shell Lubricants has been in India since for more than a decade. Are you happy with the way things have progressed over the years?
I think the real story of Shell India has only started in 2012 because prior to going solo, we had a couple of joint-ventures and a little bit start-stop operations. Over the last five years, we have been doing well on parameters such as growth in margins, volumes, people, etc. Initially, our partnerships were restricted to only 30% of the Original Equipment Manufacturer (OEM) landscape. Now, we are partnering with almost 80% of the OEM landscape. Talking about consumers, their preference for Shell has increased over the years thus enhancing our brand equity.
So how important is the Indian market for Shell globally?
India is a US$ 2.6 billion lubricant market which is growing at 2.2% annually. There is no other market in the world which can provide you this kind of an opportunity. It is one of the top three growth markets for us and we are making continuous investments in people, processes and technology. processes and technology. processes and technology. processes and technology.
Which specific industries and sectors are you currently focusing on? How do you intend to compete with Public Sector Undertaking (PSU) majors who are well established?
Our business is broken up into B2B and B2C on an equal basis. Within B2C, we have three verticals and that is passenger vehicle, two-wheelers and commercial vehicle. Within the B2B space, we work on 16 different sectors/segments like Construction, Automotive, Mining, Auto Components, Power, General Manufacturing etc. Going forward, the equations might change as there is a huge thrust on manufacturing sectors thus giving a huge fillip to our B2B business. We don’t treat PSUs separately and treat them as key competitors. Our primary focus is always on the consumers and their basic needs and the results will speak for themselves. If their (PSUs’) strengths are price points and reach, we have an edge in offering the best products at the best prices with the best services
As the automotive industry is leapfrogging from BS-IV to BS-VI norms, how are you readapting yourself accordingly?
We have already done BS-VI equivalent (Euro-VI) products in Europe, US, etc. We do know how to work with OEMs and manage all the nuances that come with it. We have a product portfolio with us which is compatible with BS-VI requirements. We will also be launching an entire portfolio of BS-VI specific products in the future. While in some cases it is co-branded, in other cases it will be for the aftermarket.
As the government is harping on e-mobility, does it concern you as your lubes are primarily used in ICE-driven vehicles?
If you take the big picture, we want to work with the mindset of what is right for the industry, planet and the consumers. So with that mindset, let’s figure out what is needed from us to get to the e-mobility. There could be a possibility that e-vehicles will need solutions in the form of hydraulic oil or transmission oil. Moreover, we want to get into other domains like vehicle related services, digitally-enabled solutions like connected cars, etc.
Talking about new industries, FDI in defense and aviation are opening up big time. So will you be deploying your resources cater to these sectors?
We do believe that our products are known for its cutting edge technology to serve these sectors. Since we already have products globally to cater to them, it would be a logical progression for us. But at this juncture, it is difficult to predict how we are actually going to tap them.
Shell is already running a R&Dcentre at Bangalore in India. Are they working for India-specific products or are they more into global products?
The centre is working on global projects like earmarking locations for drilling or using advanced modeling to gauge the optimal way to have an upstream operation like refining, drilling etc. It is also into data analytics and other insights. The pure R&D molecular technology is still happening at Hamburg, Shanghai, and the US. The Indian unit is more into Projects and Technology (P&T) operations. Going forward, I do not rule out a possibility that the Indian R&D centre is working on next-generation products for global markets.
Finally, what is the roadmap that you have prepared for India?
We want to serve 100 million local customers with the best products and want to give them cleaner energy. We want to impact their lives through better road safety and better products along the way. We also want to ensure Shell is the number one international oil company in India the way it is global.
