Gulf Oil Lubricants Sets Ambitious Rs 700-Crore EV Revenue Target by 2029

Introduction:

Gulf Oil Lubricants India Ltd., a outstanding player within the automotive lubricants area, is placing its attractions on huge boom in the electric powered vehicle (EV) marketplace. The organization, part of the Hinduja Group, aims to generate among Rs 500 crore and Rs 700 crore in revenue from its EV charging infrastructure within the next four to 5 years. This strategic move displays Gulf Oil’s commitment to diversifying its business and capitalizing at the burgeoning EV marketplace in India.

Growth Projections and Strategy:

Manish Gangwal, CFO of Gulf Oil Lubricants, highlighted the company’s ambitious target during an interview with NDTV Profit. He emphasized the potential of the fast chargers segment, which is poised to evolve into a billion-dollar industry by 2030.

We aim to secure at least a 10% market share in this segment, Gangwal said, outlining the company’s revenue aspirations of Rs 500–700 crore from this sector in the near term.

Investment in Fast Charging Infrastructure:

Gulf Oil has already made significant strides in the EV sector with its investments in charging infrastructure. Notably, the company acquired a controlling stake in Tirex Transmission, a leading DC fast charger manufacturer, in November 2023. This acquisition, valued at Rs 103 crore, is expected to bolster Gulf Oil’s footprint in the rapidly expanding EV charging market. Tirex, with over 1,000 fast chargers installed across India, is seen as a strategic asset for the company.

Gangwal highlighted the role of fast chargers in supporting the anticipated shift of government buses to electric power over the next five to seven years. “The DC fast chargers segment is critical as these buses will need rapid charging solutions,” he noted.

Gulf Oil Lubricants Targets Rs 700 Crore Revenue from EV Charging: Strategic Moves and Future Outlook:

Global and Technological Investments:

Gulf Oil’s foray into the EV space isn’t limited to domestic investments. The company has also increased its stake in Indra Renewables, a UK-based firm, during its Series B fundraising round in 2023, becoming the largest investor. Additionally, Gulf Oil has invested in ElectreeFi, a software-as-a-service company focused on EVs. These investments underline Gulf Oil’s strategic approach to enhancing its presence across the EV value chain.

Future Outlook and Strategic Plans:

Gangwal revealed that Gulf Oil plans to leverage its core lubricant business revenue to support its EV segment expansion and potentially increase dividend payouts. The company is also evaluating opportunities in battery swapping and other areas of the EV value chain to maximize its market presence.

Conclusion:

With its aggressive investments and strategic acquisitions, Gulf Oil Lubricants is well-positioned to capture a significant share of the EV market in India, capitalizing on the growing demand for fast charging infrastructure and related technologies.

Frequently Asked Questions FAQ:

  1. What is Gulf Oil Lubricants’ revenue target from the EV business?
    Gulf Oil Lubricants India Ltd. is targeting revenue between Rs 500 crore and Rs 700 crore from its electric vehicle (EV) charging business over the next four to five years.
  2. Why is Gulf Oil Lubricants focusing on the EV sector?
    The company is diversifying its portfolio to capitalize on the rapidly growing EV market. The DC fast chargers segment is expected to become a billion-dollar industry by 2030, presenting a significant growth opportunity.
  3. What investments has Gulf Oil Lubricants made in the EV sector?
    Gulf Oil has invested in several key areas within the EV sector:
  • Acquired a controlling stake in Tirex Transmission, a DC fast charger manufacturer, for Rs 103 crore in November 2023.
  • Increased its stake in Indra Renewables, a UK-based firm specializing in EV technologies.
  • Invested in ElectreeFi, a software-as-a-service company focused on EV solutions.
  1. What is the role of Tirex Transmission in Gulf Oil’s EV strategy?
    Tirex Transmission, with over 1,000 fast chargers installed across India, is a critical asset for Gulf Oil. The company’s DC fast chargers are expected to play a significant role in meeting the demand for rapid charging solutions, particularly as government buses transition to electric power.
  2. How does Gulf Oil plan to fund its EV ventures?
    The company plans to use cash generated from its core lubricant business to support its EV segment investments and potentially for dividend payouts. They are also exploring additional opportunities in the EV value chain, such as battery swapping.
  3. What is Gulf Oil’s market share goal in the EV charging segment?
    Gulf Oil aims to capture at least a 10% market share in the fast chargers segment.
  4. How is Gulf Oil positioning itself in the global EV market?
    Gulf Oil is enhancing its global presence through strategic investments, such as its increased stake in Indra Renewables and its partnership with ElectreeFi. These moves are designed to strengthen its position across various aspects of the EV value chain.
  5. What other opportunities is Gulf Oil exploring in the EV space?
    Besides investing in fast chargers and EV-related technologies, Gulf Oil is also evaluating opportunities in battery swapping and other emerging areas within the EV ecosystem.
  6. How does Gulf Oil’s experience in lubricants contribute to its EV business?
    Gulf Oil’s extensive experience in automotive lubricants provides a strong foundation for entering the EV market. The company’s established brand and market knowledge are leveraged to expand into complementary areas, such as charging infrastructure and EV-related technologies.

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