Chevron's Caltex Lubes returns to India after 12 years; HPCL to market it
Chevron Corporation, the second largest oil company based in the United States is making a comeback in the Indian lubricants market after 12 years.
Chevron Brands International LLC (Chevron), a subsidiary of Chevron Corporation and state-run Hindustan Petroleum Corporation Ltd (HPCL) have entered into a 10-year long-term agreement to license, produce, distribute, and market Chevron’s lubricant products under the Caltex brand. The companies officially launched the Caltex brand in the Indian market on Wednesday.
HPCL’s state-of-the-art manufacturing facility at Silvassa will manufacture Caltex lubricants.
The plant has the capacity to produce 75 TKLPA of lubricating oils.
«We see India as a strategic growth market and from a lubricants perspective, the growth in terms of industrial and commercial vehicles, is very significant, especially when you think about globally, in some parts of the world demand is going down. Here, demand will continue to increase.
So, we wanted to be in this market,» said Danielle Lincoln, Vice President of Chevron International Products.
Lincoln added that Caltex has not been in India since 2011.
«Like any other company, we assessed our portfolio and made a decision that we could use the resources in different places. So we left the (Indian) market.
But now we're coming back through this partnership model,» Lincoln said, adding that the company has a similar model in different parts of the world-- in South Africa and in parts of Europe, in Turkey, and in South America. «So we know how to do this model and we have seen it to be very effective.»
Chevron is a global marketer of finished lubricants with 10 facilities and 25 blending plants around the world.
