Long-drain oil & cricket: Gulf’s successful method in India

Gulf Oil appears to have been outperforming the trade constantly. What is working for the corporate?

If you have a look at our monitor document, it speaks for itself. When I took over in 2007–08, Gulf was ranked sixth or seventh in India’s lubricant market. The model existed, however we have been underperforming, priced 20% under Castrol and investing little or no in advertising and marketing. Coming from an FMCG (fast-moving shopper items) background, I knew the facility of segmentation and model constructing. We mapped 5 strategic pillars in opposition to our model values—care, braveness, inspiration, youth and endurance—and centered sharply on diesel engine oil, the place we had a pure edge by means of Ashok Leyland. Innovation helped too—Gulf launched India’s first long-drain oil in 2006. We turned that right into a story of endurance. Imagine being a truck driver used to altering oil each 18,000km, and we provide a product that lasts 36,000km. That’s a compelling worth proposition.

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That’s double the life…

Exactly. That’s the place our segmentation kicked in. Diesel engine oil, bazaar market merchandise like motorbike and automotive oils, and long-term OEM tie-ups turned our development levers. These are backed by sturdy R&D, merchandise that last more and are higher suited to Indian situations. And we priced them neatly, 7–8% under Castrol, however with greater efficiency. That gave us worth play with out diluting the model.

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You additionally shifted focus past motorsports?

Yes. In 2008, we entered cricket by means of Indian Premier League (IPL), beginning with Kings XI Punjab and later CSK (Chennai Super Kings). Dhoni turned our model ambassador and gave us huge fairness. But equally vital was our funding under the road, with mechanics, retailers, and our on-ground group. That ecosystem helped us develop 2–3x quicker than the market.

Given the EV transition, how are you enthusiastic about future-proofing the enterprise?

The lubricant market remains to be strong. India has 265 million ICE bikes on the highway. Diesel engine oils nonetheless kind 43% of the market. Even with EV development, we count on 75–80% of our core segments to stay steady. And that’s why we’re not simply defending the core, we’re rising it by means of premiumization, artificial oils, and higher product combine. Our “Unlock 2.0” technique is about speed up, premiumize and remodel.

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Let’s speak in regards to the remodel half. What’s your EV play?

We’ve made three key investments. First, UK-based Indra, which makes AC chargers, second, Tirex India, a DC charger producer we acquired in 2023, and third, Electrifie, an EV charging platform the place we personal 26%. This ecosystem permits us to serve each ends of the charging market. With over 80,000 shops and 10,000+ Gulf stops, we have already got the distribution to scale EV infrastructure.

So, Gulf is turning into a mobility model?

Yes, mobility is a development leg. Our core is powerful, however our future core consists of digitization, EV infrastructure, and synthetic intelligence (AI)-led gross sales planning. And we’re not doing it for burn. We’re creating sustainable worth, identical to we did with lubricants.

The advertising and marketing additionally appears to have developed. The Dhoni pillow advert, now Smriti Mandhana and Hardik Pandya. What’s the bigger concept?

It’s emotional branding in a rational class. Our values—care, braveness, inspiration—information us. Our “Unstoppable” marketing campaign wasn’t only a TV advert; it launched throughout out of doors, Spotify, and 13,000+ retail retailers. We’re additionally utilizing digital to help our grassroots community—mechanics and retailers now have real-time information entry.

Any new launches arising?

You’ll quickly see motion in way of life merchandising. NY.1, our attire line, and perhaps even Reviva, our espresso model, may come to India. We’re tying up with Nayara to increase into Tier 2–3 gasoline stations as nicely. So sure, loads’s coming.

And Gulf’s market positioning now together with spends?

We’re among the many high two–three in consciousness and consideration. From 20% behind Castrol, we’re now simply 7–10% off. With Unlock 2.0, we’re going to shut that hole even quicker.

We spend roughly 3.5% of topline at present on promoting and advertising and marketing. While others could go huge throughout IPL, our philosophy is consistency. Our CSK partnership is in its twelfth yr, the longest-running in IPL. That form of continuity builds actual model belief.

And how a lot energy do you actually have together with your OEM companions?

OEM partnerships are core. Back in 2007–08, we had simply Ashok Leyland. Today, we now have many. These tie-ups guarantee our oils are co-branded or endorsed post-warranty, and that provides us huge credibility. For instance, we provide over 50% of L&T’s lubricant wants. That’s not simply model, it is about service, R&D alignment and execution.

How do you navigate volatility in crude and base oil?

We work inside a 12–14% margin band. There’s a lag impact with base oils when crude fluctuates, however we’ve in-built contractual clauses with OEMs. For B2C (business-to-consumer), we modify extra dynamically. Margin growth can be coming from product combine—extra synthetics, extra premium packs.

You’ve even performed fan-generated advertisements?

Yes! Last yr with CSK, we ran a contest the place followers created advertisements—and we aired the successful one dwell. We’ve performed comparable initiatives in motorsport with McLaren and Williams. It’s a part of making Gulf greater than a product—making it half of popular culture.

Where does ESG slot in?

We’ve dedicated to net-zero, moved to photo voltaic rooftops, are engaged on recyclable packaging, and have a 25% share in AdBlue (an exhaust fluid) that cuts diesel emissions. We’re exploring re-refined oil and round fashions too. Sustainability shouldn’t be a checkbox—it’s core.