Gulf Oil Lubricants has entered into a tractor partnerhip with Mahindra & Mahindra.
Lubed and ready to go Image: Mahindra |
The agreement will include the manufacture and supply of two co-branded lubricants, one selling through the auto major's dealer/ workshop network and the other via retail outlets known as the 'bazaar segment'.
Co-branding products forms a growing 25% of the giant Indian lubes market which is worth around $3.5-4bn. This includes genuine oil products (using the manufacturer's branding) and OEM-approved branded products.
Ravi Chawla, MD, Gulf Oil Lubricants India says, "Co-branding works [in India] because both the OEM and the lubricant brands stand for some value in the open market and the user gets the surety that the product is tested on the vehicle's engine conditions."
As reported previously by OATS, the Indian tractor lubes market is set to grow in a national lubes industry which is one of the fastest growing lubricant industries in the world.
De-regulation of the Indian lubes market in 1993 saw the entry of a number of private companies. In 2013, India also deregulated diesel fuel prices for bulk customers.