India's Gulf-Oil Corporation is set to expand its lubes activities in the country but may reduce mining.
The announcement came from Gulf's Chairman, Sanjay Hinduja, a member of the Hinduja family which owns the energy to manufacturing giant Hinduja Group. Gulf has apparently drawn-up a shortlist for potential port-based sites in India that can house a 75,000 tonne refining capacity operation.
Gulf already owns one lubes refinery, in Silvassa, and has set a clear target to increase its 6.5% domestic market share and move into the top three lubes providers (it is currently ranked sixth). India is currently Gulf's fastest growing market at 15% annually, with China growth at 7%. The company is looking to spend around Rs150 crore ($27m) in setting up the site.
Meanwhile, Mr Hinduja also suggested that Gulf may hive off its mining division to prevent further losses generated by mining restrictions in South West India. It will also seel a 26% stake in its explosives division. The mining losses had a significant impact on the company's Q3 figures and Gulf is looking to concentrate on its lubricants and auto manufacturing activities in Southern India.