Mission Statement, Vision, & Core Values (2024) of Castrol India Limited

A Brief History of Castrol India Limited

Castrol India Limited, a subsidiary of the global lubricant manufacturing firm Castrol, has played a significant role in the lubricants sector in India. Established originally in 1910, the company has evolved in response to the changing demands of the automotive and industrial markets.

By 1930, Castrol had established its first manufacturing plant in India, located in Sohna, Haryana. This facility enabled Castrol India to produce high-quality lubricants locally. In 1993, the company became a publicly-traded entity on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) under the symbol CASTROLIND.

In recent years, Castrol India has reported a consistent growth trajectory. For the fiscal year 2022-23, the company reported a total revenue of INR 6,820 crores, marking an increase of 14% year-on-year. The net profit for the same period was INR 1,150 crores, reflecting a growth of 11% compared to the previous fiscal year.

In terms of market presence, Castrol India holds a significant share in the automotive lubricant segment, approximately 25% as of 2023, making it one of the leading players in the segment. The brand's extensive product portfolio includes engine oils, industrial lubricants, and specialty products.

Castrol India is committed to sustainability. As part of its environmental initiatives, the company has invested in reducing carbon emissions in its manufacturing processes. In 2022, Castrol India reported a 30% reduction in carbon emissions from its operations as compared to 2019 levels.

The company's research and development focus has also led to the introduction of advanced product lines. The launch of Castrol Magnatec, known for its unique molecules that cling to engine parts, has garnered significant market attention and sales growth, contributing an additional INR 500 crores in revenue since its introduction.

As part of its corporate strategy, Castrol India continues to expand its distribution network and explore partnerships to strengthen its market position. As of 2023, the company operates through over 3,500 distributors across India, ensuring widespread availability of its products.

In summary, Castrol India Limited has established a robust presence in the lubricants industry while demonstrating strong financial performance and a commitment to sustainability and innovation.

A Who Owns Castrol India Limited

Castrol India Limited is a prominent player in the lubricants market, with a significant presence in India. The company, which is a subsidiary of the global oil giant BP plc, focuses on producing and marketing a wide range of automotive and industrial lubricants.

As of 2023, BP plc holds a majority stake in Castrol India Limited, owning approximately 71% of the company. The remaining 29% is held by public shareholders. This ownership structure allows BP to leverage Castrol's strong brand presence in India while benefiting from the local market's growth potential.

The detailed shareholding pattern of Castrol India Limited is as follows:

Castrol India Limited is listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) under the ticker symbol “CASTROLIND.” As of October 2023, the market capitalization of Castrol India Limited is approximately ₹24,000 Crores.

The company has been performing consistently, recording a revenue of ₹3,500 Crores in its recent fiscal year ending June 2023. During the same period, Castrol India reported a net profit of ₹700 Crores, showcasing a net profit margin of approximately 20%.

Additionally, Castrol India Limited has a dividend payout policy that appeals to investors. The company declared a dividend of ₹6 per share in its latest annual report, maintaining a healthy dividend yield of around 2.5% based on its current stock price.

Castrol India Limited has been investing in expanding its product range and enhancing its distribution network. The company's strategic collaborations and marketing efforts have contributed to its robust market position in the Indian lubricants industry.

In terms of brand reputation, Castrol has established itself as a leading name in motor oils and greases. The brand's strong association with motorsports and automotive performance continues to resonate well with consumers.

Overall, Castrol India Limited's structure under BP plc allows strategic alignment in product marketing and development while maintaining a strong foothold in the dynamic Indian market.

Castrol India Limited Mission Statement

Castrol India Limited, a subsidiary of BP plc, aims to provide high-quality lubrication products to its customers while ensuring sustainability and innovation. The company's mission focuses on delivering superior performance and maintaining long-term relationships with customers and stakeholders.

According to its mission statement, Castrol India is dedicated to:

• Offering a wide range of high-performance lubricants.
• Enhancing customer satisfaction through continuous improvement and innovation.
• Promoting environmental stewardship and sustainable practices in its operations.
• Investing in the development of its workforce to foster a culture of excellence.
• Contributing to the communities where it operates.

In 2023, Castrol India reported a revenue of ₹7,653 crores, reflecting a growth of 17% year-on-year compared to ₹6,552 crores in 2022. This growth can be attributed to an increase in demand for their premium products and effective marketing strategies.

Castrol India Limited places significant emphasis on sustainability. In 2022, it reduced its carbon footprint by 10% through various initiatives aimed at improving energy efficiency across its operations. This aligns with BP's broader commitment to become a net-zero company by 2050.

The company’s commitment to innovation is evident through its investment of around ₹150 crores in research and development in the fiscal year 2023. This investment has resulted in the launch of new product lines that cater to emerging automotive and industrial needs, ensuring that Castrol stays ahead of market trends.

Furthermore, Castrol India’s marketing strategies have reinforced its brand presence. In 2023, the company achieved a market share of approximately 17% in the automotive lubricants segment, making it one of the leading players in the Indian market.

As of mid-2023, Castrol India Limited had a workforce of over 2,500 employees, making strides in employee satisfaction and development through various training programs designed to enhance skills and capabilities pertinent to the industry's evolution.

How Castrol India Limited Works

Castrol India Limited operates as a subsidiary of the global lubricants company, Castrol, which is part of the BP Group. The company primarily manufactures and markets a wide range of automotive and industrial lubricants. It plays a significant role in the Indian lubricants market, leveraging both its global expertise and local market knowledge.

In the fiscal year 2022-2023, Castrol India reported net sales of approximately ₹3,576 crores, reflecting a year-over-year growth of 12% from the previous fiscal year. The company focuses on delivering high-quality products, achieving a gross profit margin of 43% during the same period.

Castrol’s product portfolio includes engine oils, gear oils, greases, and other specialty lubricants, catering to various segments such as passenger vehicles, commercial vehicles, and industrial applications. The automotive segment contributes around 70% of its total revenue, while industrial lubricants account for the remaining 30%.

Castrol India operates through a well-established network of distributors and retail outlets, ensuring widespread availability of its products across the country. The company has a solid presence in the automotive aftermarket, with strategies focused on brand loyalty and customer engagement.

To illustrate the market structure and performance, the following table summarizes key financial metrics for Castrol India Limited over the past three years:

The company invests significantly in marketing and brand building. As of 2023, Castrol India’s advertising expenditure was approximately ₹200 crores, enhancing its visibility and reinforcing its brand equity in the market.

Castrol India Limited also emphasizes sustainability and innovation in its operations. The company has committed to producing environmentally friendly products, a move that aligns with global trends in the lubricants industry. In 2023, Castrol launched a new range of bio-based lubricants aimed at reducing carbon footprints.

As part of its operational strategy, Castrol India is focused on digital transformation, utilizing data analytics for better market insights and customer engagement. The adoption of advanced technologies in manufacturing has enabled the company to enhance efficiency and reduce costs.

In terms of stock performance, as of October 2023, Castrol India’s shares were trading at approximately ₹145 per share, with a price-to-earnings ratio (P/E) of 24. This reflects investor confidence in the company’s growth trajectory and market position.

Furthermore, Castrol India has a robust distribution system, with over 25,000 retail outlets across India. This extensive network plays a crucial role in reaching customers in both urban and rural areas.

The combination of strong financial performance, a diverse product portfolio, and a commitment to sustainability positions Castrol India Limited as a leader in the Indian lubricants market, poised for future growth amidst market challenges.

How Castrol India Limited Makes Money

Castrol India Limited, a subsidiary of BP plc, is a prominent player in the automotive and industrial lubricants market. The company primarily generates revenue through the manufacturing and marketing of lubricating oils and greases, which cater to various segments including automotive, industrial, and marine sectors.

For the financial year 2022, Castrol India reported a total revenue of ₹ 4,406 crore, reflecting a growth of 16.7% compared to the previous fiscal year. The key contributors to this revenue include:

• Automotive lubricants: ₹ 3,250 crore
• Industrial lubricants: ₹ 900 crore
• Marine lubricants: ₹ 256 crore

Castrol India operates through a multi-channel distribution strategy, which includes direct sales, e-commerce, and a network of distributors and retailers. This strategy allows it to reach a broad customer base across urban and rural markets.

The company has invested significantly in marketing and brand awareness, which is evident given that Castrol's brand accounts for approximately 40% of the total automotive lubricant market share in India. Their product line includes high-performance engine oils, greases, and specialty lubricants tailored for both vehicles and industrial applications.

Furthermore, Castrol India's focus on sustainability has led to the development of eco-friendly products, appealing to environmentally conscious consumers and businesses. This includes the Castrol EcoClean line, which targets the growing demand for sustainable products.

In terms of operating efficiency, Castrol India boasts an operating margin of 23%, indicative of its robust cost management strategies and pricing power. In 2022, the company's net profit stood at ₹ 800 crore, with a profit margin of 18%.

For the mid-term forecast, analysts project a revenue growth rate of around 10-12% annually, driven by increasing vehicle ownership, growing industrial activity, and expanding e-commerce initiatives.

Overall, Castrol India's revenue model is underpinned by a combination of a diversified product portfolio, extensive distribution network, and a strong brand presence that enables it to capitalize on various market opportunities.