Valvoline has successfully completed a decade of its presence in India. The company has established itself as the fastest growing lubricant company in India. Valvoline has set an ambitious revenue growth target for the year 2009 even in very challenging market conditions. The company has taken many new initiatives to increase its share in the highly competitive lubricant market.
Mr. Vinay Pande, Head - Marketing & Business Development, Valvoline Cummins Ltd., says: “In a declining market scenario, Valvoline has managed to grow in all its core segments, namely, diesel engine oil, passenger car segment and two-wheeler segment. We have been increasing our marketshare in all segments”.
Valvoline Cummins Ltd. is a joint venture between Ashland Inc., USA, and Cummins Sales & Services (India) Ltd., a wholly-owned subsidiary of Cummins India Ltd. Valvoline is today the fastest growing lubricant marketer and producer of quality branded automotive/industrial products. The products offered in the Indian market include automotive lubricants, transmission fluids, gear oils, hydraulic lubricants, automotive filters, specialty products, greases and cooling system products.
“We have come a long way since we started our operations in India in 1998. We are a growing dynamic company having base of 54 stock points delivering products and services to more than 500 distributors for bazaar trade. In bazaar trade we approximate that our products are available in more 26,000 retail counters across India”, says Mr. Pande.
The year 2008 was a landmark year for Valvoline Cummins in India, because it undertook and accomplished successfully its special mission called 50K during the year. Mission 50 K was the goal that the organization set for itself in 2007-08.
“This envisaged a target of 50,000 kl volume of lubricant sales for that financial year. The target meant that we needed to grow well over 20% on previous year’s volumes. We are proud to say that we achieved the set target by reaching our goal for the year. This endorsed the fact that Valvoline Cummins Ltd. continues to be amongst the fastest growing lube companies in India”, adds Mr. Pandey. The company clocked a turnover of Rs. 470 crores in 2008.
Valvoline has also taken a number of initiatives that helped in increasing its marketshare. The company recently tied up with BEML, Sonalika Tractors, Mahindra & Mahindra and Terex Vectra, for further strengthening its position with the OEMs. Valvoline has also recently launched a co-branded genuine oil for M&M Powerol Division after extensive field trials. M&M Powerol powers diesel generating sets from 5KVA to 140 KVA.
At the ground level, Valvoline has conducted extensive van campaigns across India. “We do a lot of ground level activity which has helped create awareness for the product. We have been running van campaign across India with more than 36 vans running across the length and breadth of the country. These vans are equipped with audio visual devices. The van campaign has been very successful for Valvoline in providing visibility for the brand in urban, semi-urban and rural areas”, adds Mr. Pande.
Valvoline has also been conducting training programmes for mechanics across the country. Typically, the company identifies roadside garages which have the potential to improve and provide them training on the latest technology engines and aggregates. This has helped build a certain loyalty factor for the brand with the mechanics. The company has till date covered over 350 mechanics all over the country.
Among the new product launches, Valvoline has recently launched a unique product for used trucks. In India, 80 per cent of the trucks are old vehicles which have run for over 200,000 km, and this oil has been developed and tested extensively to suit older engines. This is a unique product and the first of its kind in the market. The product has already been launched in select markets in the North and in Vijayawada in the South.
This product is clearly performance oriented and is the product for the future, according to Mr. Pande. The company is also coming out with a completely new packaging for all its products which will be as per the global standards.
Another interesting initiative is the Valvoline multibrand bike service centers. The two-wheeler segment is undoubtedly the fastest growing segment with nearly 7 million bikes getting added to the market every year. Currently there are not many options available for servicing two wheelers. vehicles will have to be serviced either at the authorised service centre or with the road side mechanics. Multi-brand bike service fills the gap. Valvoline is currently testing this model in two locations in Gurgaon and Ludhiana and the results are very encouraging, says Mr. Pande.
These are currently company-owned outlets and in future the company is looking at developing a franchise model to expand it across India. In fact, Valvoline ropped in Australian Cricketer Ricky Ponting as its brand ambassador who is being initially used to endorse premium lubricants for 4 stroke motorcycles and this has helped gain lot of visibility for the brand, adds Mr. Pande.
Valvoline has been in India for just over a decade but it has undoubtedly established itself as the fast growing lubricant brand in the market. Currently 14% of its total business comes from Motorcycle oil, 6% comes from passenger car segment and close to 58% comes from diesel engine oil in the aftermarket.
“We are very innovative and we change and adapt very fast as per market requirement. This is the key reason for the success of Valvoline in India”, concludes Mr. Pande.
