Under Schedule V to the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015, we present a comprehensive Management Discussion and
Analysis Report focusing on business performance and outlook within the competitive
landscape set by the Company.
Industry Structure and Developments
India is the worlds 3rd largest finished lubricants
market, holding approximately 8% of the global share1 and is regarded as a
growth market worldwide. •e lubricant segment in India encompasses the Automotive,
Industrial, and Marine industries. •e Automotive and Industrial sectors, contributing
significantly to overall demand, are almost evenly balanced. •e automotive sector
includes demand from commercial and personal mobility vehicles and includes fluids such as
gear oils, coolants, greases, and engine oils. Industrial demand comprises general
industrial oils such as hydraulics, gear oils, refrigeration/compressor fluids, as well as
process oils, metal working fluids, and greases. Both sectors see participation from
nationalised oil companies (NOC), private multinational players, and several local oil
companies. Your Company secured a prominent position in the retail automotive industry and
ranks among the top 5 players in industrial metalworking fluids1.
Emerging trends
An emerging trend within the automotive sector is the adoption of
electric powertrains. Electric vehicles constitute about 2% of sales of new cars and
utility vehicles about 5% of new two-wheeler sales2 Your Company envisions that
the transition to electric powertrains will happen sooner for two-wheelers and
three-wheelers than for cars and commercial vehicles, predicting a sustained growth in
lubricant demand invariably until 20403. •e Company actively supports this
transition through technological collaborations with Original Equipment Manufacturers
(OEM) and holds a strong position with two leading EV four-wheeler OEMs in India.
Your Company invests in training programmes to address the EV
transition and ensure independent auto mechanics stay relevant. Your Companys unique
EV-readiness training, endorsed by Indias Automotive Skills Development Council
(ASDC), aims to equip mechanics for the ever-evolving automotive landscape. In FY 2023,
your Company expanded the EV-readiness program to 13 cities, training more than 1,000
mechanics to date.
With 1,000+ mechanics becoming future-ready, the EV readiness training
enables them to upskill rapidly and contribute to a sustainable future.
Demand drivers
Lubricant demand is driven by its Industrial and Automotive
applications. Industrial lubricants cater to various industries, such as automotive, wind,
power, steel, cement, general engineering, and manufacturing, which are linked to
increased economic activity. India stands as the third-largest global market for
automobile production2. •e demand for commercial vehicles is influenced by
rising factory and farm output, infrastructure development, and mechanisation of
agriculture. In contrast, for personal mobility vehicles, the demand is driven by a
growing aspirational middle class, easy access to finance, and a lack of robust public
transport infrastructure. Additionally, technological developments in hardware design are
pushing the shi˜ to more e™cient fluids.
Supply drivers
Lubricants are manufactured by blending base oils with additives, which
involve sophisticated formulations aligned with OEM specifications and industry norms. As
a net base oil deficit market, India heavily relies on large-scale imports of base oils
and additives. •is reliance on imports exposes the lubricants business to
fluctuations in foreign exchange rates and potential disruptions in the supply chain.
Major industry developments
•e overall lubricants market displayed resilience and maintained
growth momentum despite economic challenges and inflation. Overall, mobility has also
remained strong and carried a growth trend.
Notably, consumer sentiments are improving and getting close to
pre-COVID levels. However, rural recovery has been soƒer than urban. New vehicle
sales registered strong growth across two-wheelers, four-wheelers, and trucks, with new
four-wheelers registering a record of 4 Million+ units2. New two-wheeler
dispatches grew by around 9% year-on-year2 but remained shy of the pre-COVID
levels, given the steep increase in vehicle prices and higher financing costs over the
last few years. However, government subsidies and soƒening battery prices increased
electric vehicle sales. With the launch of newer models and improving supply-side
conditions, SUVs continue to drive growth in the four-wheeler segment. e passenger vehicle
industry also saw the adoption of BS-VI Stage 2 norms, which are expected to improve fuel
efficiency further. Additionally, strong replacement demand and healthy growth in economic
activity supported the sales momentum of commercial vehicles. Overall, lubricant
consumption grew in FY 2023 compared to FY 2022 across various categories.
Impact of external factors
e lubricants market witnessed volatility in crude oil and base oil
prices throughout FY 2023, influenced by geopolitical events and economic conditions. e
year started with soƒening base oil prices due to subdued demand in Asia, driven by
COVID restrictions in China and lower-than-expected economic growth. is phenomenon
continued for over four months before turning upward in the second quarter. However, base
oil margins were kept in check due to ample supplies and fewer refinery turnarounds. is
was most evident during mid-2023 when, despite crude prices increasing by over 30% from
early 3Q to 4Q 2023, base oil prices stayed relatively the same. e depreciation of the
Indian Rupee by approximately 1.8% in 2023 added challenges to your Companys
operations by affecting input prices across all procurement categories. e graph below
indicates the trend of crude oil prices in INR/ USD in 2023:
In a turbulent business landscape, your Company persevered by creating
value for its investors. is was achieved through strategic sourcing, utilising long-term
contracts, implementing value improvement initiatives, prioritising service and quality,
and vigilantly monitoring costs. e Company remained committed to the best value purchase
model and implemented value-based inventory management. e focus on cash costs and working
capital remained sharp throughout this challenging environment.
Opportunities and reats
Opportunities
In the realm of personal mobility, your Company is strategically
positioned to capitalise on trends such as the surge in SUVs and CNG-powered vehicles, the
demand for thinner viscometric premium lubricants, and the growing influence of
e-commerce-driven and business-in-service activities such as delivery and ride-hailing.
Additionally, the expansion of vehicle sales in rural areas and the evolving independent
workshop ecosystem allow your Company to introduce tailored products like MAGNATEC SUV
5W-30. Your Company is actively pursuing these opportunities by reinforcing its presence
in rural markets, implementing brand-building initiatives, and investing in channel
development through strengthening the Castrol Auto Service network while developing new
formats such as Castrol Express, enhancing the oil change experience.
In the commercial mobility sector, your Company is aligning itself with
the governments focus on infrastructure development and increasing farm
mechanisation. Your Company recognises the potential in both on-road and off-road
commercial vehicles, seizing opportunities through innovation and expanding its product
range under Castrol CRB ESSENTIAL. As hardware technology evolves, your Company aims to
increase the adoption of premium fluids with higher specifications, such as CI4+ and CK4.
Furthermore, the emergence of CNG as an alternate fuel for smaller commercial vehicles is
another area of focus.
Your Company addresses these opportunities by fortifying its offerings,
widening its product range, and sustaining brand-building activities. New product
introductions like Castrol CRB ESSENTIAL engine oils, Castrol Spheerol ESSENTIAL and
Castrol Spheerol CV 40K in greases cater to price-sensitive truck and tractor owners.
e newly launched Castrol CRB ESSENTIAL range of commercial vehicle
engine oils provides engine protection, minimises repair costs, and prevents unexpected
downtime.
e advent of new channels, especially in digitally enabled service
ecosystems, is gaining prominence. Your Company is strategically partnering and expanding
its service maintenance and repair network to strengthen its position in this segment.
Your Company revamped its visual identity system in line with the new
brand essence of ‘Accelerating Progress. is included a renewed logo, new
packaging for our entire range and an iconic brand sonic identity which will help stand
out amongst the competition, as we move our partners upward, onward and forward.
Your Company is committed to its digitalization strategy, with ongoing
initiatives such as FASTSCAN, FASTLANE, and Castrol SUPER MECHANIC. Your Company has also
implemented an online academy, offering training programs to enhance the customer and
consumer experience. Additionally, the E2E Transport Management System and other digital
solutions have also been implemented to improve shipment planning, visibility, and overall
operational efficiencies. Furthermore, your Company is in the process of revamping
end-to-end integrated planning using the Kinaxis tool.
Launched in FY 2023, the Castrol Super Mechanic Learning Academy has
trained 18,000+ mechanics and has the potential to reach 5,00,000 mechanics. It is
available in six vernacular languages.
OEM alliances: Castrol recognises the opportunities arising from
new vehicle sales and hardware advancements. Your Company has fostered strong
relationships with key OEMs in various segments, expanding alliances with industry leaders
like TATA Motors in the on-road commercial vehicle space. Your Company has also ventured
into the EV market as a partner for EV fluid supply for leading passenger vehicle OEMs.
reats
Inflation remains a potential risk to consumer demand despite some
moderation in consumer inflation levels. Electrification poses a threat as the
adoption of electric vehicles increases, particularly in two-wheelers and small commercial
vehicles for last-mile deliveries. While the longer-term demand projection for lubricants
in internal combustion engine (ICE) vehicles is expected to persist, the electric vehicle
(EV) market will experience growth. EVs require lubricating fluids for transmissions and
cooling fluids for motors. Your Company is well-positioned to participate vigorously in
this transition with its range of EV fluids and OEM alliances. Drain intervals for
lubricating fluids are widening due to modern hardware design in on-road commercial
vehicles and growing demand for higher specification oils, impacting overall category
volumes. However, these volumes will continue to grow as they are driven by an increasing
parc and higher sump sizes, making the impact of widening drain intervals moderate. Competition
is intense in the Indian lubricant market, with multiple player profiles, including NOCs,
international private companies, OEM genuine oils, and a large, fragmented set of
lubricant manufacturers.
Product-Wise Performance
Automotive lubricants
In the personal mobility space, your Company demonstrated
strategic prowess by leveraging cricket and the Indian Premier League (IPL) platform,
reaching over one Billion impressions with the #CompromisePadegaMehanga campaign
for Castrol Activ. Aligning with the worlds leading motorcycle event coming to India
for the first time, Castrol POWER1 utilised digital key opinion leaders to amplify its
association with motorsport, partnering with ViaCom18, RACR and LCR Honda Castrol MotoGP
team to launch Castrol POWER1 presents Indias Ultimate MotoStar. is
initiative aims to nurture racing talents, offering training in key cities and an
opportunity to train with the LCR Honda Castrol MotoGP team in Europe. In the passenger
car oils segment, Castrol MAGNATEC, upgraded to API SP and ACEA C specifications,
showcased its advanced engine protection through a well-received campaign during the IPL,
securing substantial reach nationwide.
To address the growing SUV market, the successful launch of MAGNATEC
SUV 5W30, with API SP and ACEA C2 specs, positions it as a leader in SUV engine oils. With
heavy load protection for SUV engines, MAGNATEC SUV is poised to be the leader in SUV
engine oils.
A consumer promotion on the Castrol MAGNATEC range further marked the
end of the year with a significant offline and online impact.
For commercial vehicle oils, the Castrol CRB TURBOMAX
#BadhteRahoAagey campaign was launched, emphasising progress for truckers and the 3X
Protection offered by Castrol CRB TURBOMAX. e campaign extends on-ground with Castrol CRB
TURBOMAX #PragatiKiPaathshaala, endorsed by celebrity brand ambassador Sonu Sood,
where two trucks will traverse different routes, covering key Transport Nagars across
India to educate truckers on four key areas: driving safety, truck ownership, new
technology and business profitability. e on-ground activation is targeted to reach over
1,00,000 truckers and actively engage at least 10,000 through training sessions.
Pragati Ki Paathshaala aims to boost the entrepreneurial mindset of the
truckers and direct them towards the path of progress – bringing alive the idea of
#BadhteRahoAagey.
To fortify its presence in the service and maintenance sector, your
Company expanded its network of Castrol Auto Service workshops to 448 across 200+ towns in
FY 2023.
To enhance customer experience at Castrol Auto Service (CAS) workshops,
your Company signed an agreement with Mahindra Insurance Brokers Limited, a prominent
insurance brokerage firm. is allows CAS workshops to act as the Point of Sales Persons
(POSP) that offer automotive insurance products via a digital platform alongside repair
and maintenance services.
e Castrol Auto Service car workshops expand nationwide, offering
vehicle owners reliable service and quality products.
Your Company commissioned 48 Castrol Express Oil Change services for
two-wheelers in urban Jio-bp mobility stations, providing quick engine oil changes for
bike owners.
Expanding its portfolio into the auto care segment in May 2023, your
Company introduced products such as Chain Cleaner, Chain Lube, 3-in-1 Shiner, 1-Step
Polishing Compound and Anti-Rust Lubricant Spray. is range is available at over 21,000
outlets and e-commerce platforms, reinforcing your Companys commitment to delivering
superior service satisfaction to vehicle owners across India.
Your Company also introduced EV transmission fluids in the
aƒermarket. Our Castrol ON product is available on leading e-commerce websites and is
a testimonial to our commitment to keeping the portfolio future-ready.
Marine & energy lubricants:
e dynamic landscape of the ports and maritime sector has witnessed
substantial changes, prompting the identification of six key trends in FY 2023. ese
trends, ranging from environmental sustainability to digitalisation, reflect the evolving
nature of the industry. Notable shiƒs include:
• Decline of ports and maritime transaction activity
• Decrease in maritime traffic with port decongestion
• Decrease in shipping line rates and profits
• Development of a green hydrogen logistics chain
• Environmental sustainability in shipping
• Digitalisation as an efficiency driver
Energy Sector:
In the energy sector, fluctuating crude oil prices, reaching USD 94 per
barrel in September, have been influenced by additional supply cuts from major producers.
Indias oil demand is expected to rise significantly, driven by a
positive outlook in the offshore oil and gas market due to supply security concerns and
elevated oil prices. e offshore rig market is experiencing a high utilisation of 85%,
reaching these levels for the first time since 2015. Your Company has expanded its
presence in the domestic marine sector, including offshore supply vessels, fishing, and
dredging. Roughly 80% of international trade is transported by sea. In the marine
industrys pursuit of decarbonisation, Castrol Marine Technical Service teams
collaborate closely with OEMs like MAN Energy Solutions, working on alternate fuels and
developing specialized lubricants. Key achievements include the certification of
Castrols Cylinder Oil Cyltech 40 XDC as category II BN Oil by MAN ES, emphasising
cleanliness and lower combustion deposits. Castrol Energys active participation in
industry events, such as the FPSO World Congress and Maritime Decarbonisation, showcases
its commitment to staying at the forefront of technological advancements.
Industrial lubricants:
Your Company has expanded its customer outreach in the Industrial
lubricants category by participating in important industrial exhibitions such as IMTEX and
Windergy. Working closely with Industrial OEMs helped Castrol gain approvals for its
Industrial lubricants. Your Company also conducted technical capability training for key
customers to drive advocacy for their products. Additionally, it has also launched new
greases (Ball Bearing EP 2) that are suitable for Industrial applications.
Various customer engagement activities helped increase the brand
visibility of our Industrial lubricants business and have helped forge new partnerships
and strengthen existing relationships.
Quality
Maintaining a strong focus on quality, your Company succeeded with
initiatives like the zero-defect digitalisation journey, while adhering to global quality
standards. A Quality Strategy is integrated throughout your Company, emphasising key
pillars such as quality culture, customer quality, supplier quality & quality
management systems.
e Quality Energiser Program, aimed at reducing risks and sharing best
practices, has effectively solidified a positive quality culture across manufacturing
sites. Standardising SOPs at customer sites enhances product performance while QR codes
on-pack labels, along with upgraded scanning systems, elevate packaging quality.
rough a robust capex investment program, your Company has automated
quality-critical processes, ensuring continuous risk reduction. e program role extends to
carrying out feasibility studies for new product introductions, and successful line trials
for packaging initiatives. Additionally, the integration of technology resulted in
cost-competitive localised formulations, generating more value for businesses. In the
pursuit of digitisation, your Company expanded the implementation of digital tools and
apps to simplify processes, standardise data management, strengthen controls, enhance
customer responsiveness, and manage quality performance in real-time.
e Company successfully completed recertification audits for ISO
9001:2015 and IATF 16949: 2016 standards. e Silvassa plant earned the Platinum award in
‘Apex India Quality Excellence 2023. Maintaining the Ford Q1 recertification
underscores our plants quality excellence in the OEM business. Despite disruptions
from geo-political challenges, your Company ended the year without any significant quality
incidents, a testament to our commitment to delivering sustainable end-to-end quality
performance.
Future Outlook
Looking ahead to 2024, Indias economic activity and GDP growth
are expected to remain resilient despite ongoing geopolitical uncertainties. As a result,
India is poised to become one of the major economies in the world with a promising growth
outlook. Your Company anticipates sustained demand growth across segments. e outlook for
2024 has been examined closely by your Company through the broad dimensions of demand
drivers.
DEMAND DRIVERS FOR AUTOMOTIVE LUBRICANTS
In automotive lubricants, the anticipated off-take growth observed
throughout 2023 is poised to sustain momentum in 2024. Your Company is committed to
propelling this growth by expanding participation across diverse price segments, ensuring
broader availability across geographic strata, reinforcing its workshop presence, and
making substantial investments to nurture premium brands. In commercial mobility, your
Company foresees continued off-take growth driven by an expanding vehicle parc, sustained
economic activities, and a focus on infrastructure development. Our strategic approach
involves aggressive growth pursuits through an extensive portfolio spanning the full-fluid
spectrum, amplifying the footprint of technologically advanced premium products, and
substantial investments in brand building.
DEMAND DRIVERS FOR INDUSTRIAL LUBRICANTS
Despite the challenges posed by a low base effect for 2Q 2023 and
inflationary headwinds in the latter half of the year, overall industrial output
experienced growth. e positive business confidence index and moderation in inflation
position the long-term demand growth for industrial lubricants on an optimistic
trajectory. Marine & energy lubricants: While world trade shows signs of recovery from
the profound slump induced by the COVID-19 pandemic, economists from the World Trade
Organization caution that ongoing aƒereffects of the pandemic could disrupt any
rebound. Although trade volume growth was projected to rebound to 7.2% in 2021, it is
expected to remain below pre-pandemic levels. e marine and energy lubricants sectors
remain attuned to these dynamics, navigating potential disruptions while staying vigilant
to emerging trends and opportunities in the post-pandemic landscape.
CHANNELS OF DISTRIBUTION
Your Companys products seamlessly reach customers through a
robust distribution network involving 333 distributors, catering to approximately 1,30,000
customers. is extensive network extends to sub-distributors, reaching additional outlets
in semi-urban and rural markets. Leveraging this distribution power, your Company
strategically connects with a broader network of independent workshops. e successful
expansion of the CAS channel, now boasting over 448 customers, has allowed it to offer
premium services to many independent workshops. Directly serving close to 3700 customers,
and in some instances through its distributors, your Company has fostered direct
relationships. e alliance with Jio-bp (Reliance bp Mobility Limited) has unlocked a new
growth channel, facilitating the expansion of your Companys footprint in fuel
forecourts across India. In recent years, your Companys emphasis on priority
channels, mainly e-commerce, has been the driving force behind robust topline growth.
Moreover, the investment in a digitally- enabled integrated service model underscores the
commitment to enhancing market coverage and elevating customer experiences for indirect
customers. roughout FY 2023, your Company has remained dedicated to streamlining systems
and processes, injecting speed and efficiency into its back-end operations. e strategic
incorporation of digitalisation has facilitated operational enhancements and created a
superior and premium experience for customers during their interactions and touchpoints
with your Company.
Risks and Concerns
e Risk Committee vigilantly oversees potential risks and evaluates the
efficacy of risk mitigation strategies devised by your Company.
e overarching risk of a general economic slowdown, stemming from
pandemic-induced disruptions and persistent volatility in input costs and foreign exchange
remains on the radar. Your Company has implemented comprehensive mitigation plans to
safeguard margins while navigating growth and transformative endeavours. In FY 2023,
strategic interventions, pricing adjustments, and a focused cost efficiency management
program were executed, considering input costs, competitive positioning, and product brand
strategies. Furthermore, by actively addressing cybersecurity risks, particularly in the
context of increased remote working, your Company promotes responsible behaviours and
employs tools and processes to shield information, systems, assets, and personnel from
current and emerging cyber threats. e Risk Management Committee remains vigilant,
constantly monitoring and reviewing existing and emerging risks. In the burgeoning Indian
growth market, heightened opportunities for employability and commensurate roles elevate
your Companys attrition risk. Your Companys robust capability offerings,
nurturing and developing talent, enhance employee relevance in the market.
Health, Safety, Security, and Environmental considerations take
precedence, mainly focusing on road safety for the frontline team and transporters
traversing the country for business. Additionally, product quality and integrity remain
paramount, aligning with your Companys quality vision of ‘Right Quality First
Time Every Time and ‘Zero Defect, making it crucial for delivering a
premium customer experience. Your Company maintains a robust risk mitigation plan,
ensuring continuous monitoring and prompt mitigating actions as and when needed.
Internal Control Systems and their Adequacy
Your Company maintains an effective Internal Control System
commensurate with its size and complexity, providing reasonable assurance of authorised
and accurately recorded transactions. An independent Internal Audit function, coupled with
extensive internal audits and periodic reviews, ensures the adequacy of internal control
systems. Your Company remains committed to minimising identified risks through continuous
monitoring and mitigating actions.
Discussion on Financial Performance Concerning Operational Performance
Please note that Castrol India Limited follows the calendar year
(January to December) for its financial reporting. For the full year ended 31 December
2023, the Company registered Revenue from Operations of INR 5,075 Crores. It also marks an
overall revenue growth of 6% compared to INR 4,774 Crores for the full year ended 31
December 2022. e Companys Gross Profit increased by 7% in FY 2023 over FY 2022. is
was on account of higher volume and strategic price interventions. Operating and Other
expenses increased by INR 91 Crores as compared to the previous year on account of
investment in people, safety, brand, and business growth opportunities. Profit before Tax
increased by about 8% over the previous year to INR 1,181 Crores. is generated a healthy
cash flow from operations for FY 2023 of INR 853 Crores.
PertheSEBI(ListingObligationsandDisclosureRequirements) Regulations,
2015, the Company is required to give details of significant changes (i.e. change
of 25% or more as compared to the immediately previous financial year) in key financial
ratios.
Key financial ratios
| Particulars |
Unit |
2023 |
2022 |
% change |
| Debtors turnover |
Times |
13.13 |
14.42 |
-9% |
| Inventory turnover |
Times |
4.94 |
4.87 |
1% |
| Current ratio |
Times |
1.91 |
2.00 |
-4% |
| Operating profit margin |
% |
23% |
23% |
2% |
| Net profit margin |
% |
17% |
17% |
0% |
| EBITDA |
% |
24% |
23% |
1% |
| Return on net worth* |
% |
43% |
46% |
-7% |
*Return on net worth is a measure of the profitability of a company
expressed in percentage. It is calculated by dividing the profit for the year by the
average capital employed during the year.
Interest coverage ratio and debt equity ratio are not applicable to the
Company since there are no borrowings. e finance cost in the financial statements relates
to leases (IND AS 116). e debtors turnover ratio indicates a companys
effectiveness in collecting its receivables from customers. It is computed by dividing the
revenue from operations by average trade receivables.
e inventory turnover ratio indicates the number of times a company
sells and replaces its inventory during the period. It is calculated by dividing the cost
of goods sold by the average inventory.
e current ratio is a liquidity ratio that measures a companys
ability to pay obligations that are due within twelve months. It is calculated by dividing
the current assets by the current liabilities.
Operating profit margin is a profitability or performance ratio used to
calculate the percentage of profit a company produces from its operations. It is
calculated by dividing the earnings before interest & taxes (EBIT) by revenue from
operations. Net profit margin is equal to how much net income or profit is generated as a
percentage of revenue. It is calculated by dividing the profit for the year by revenue
from operations.
Key Developments in Human Resources / Industrial Relations
e unwavering focus on employee health and well-being, coupled with
robust employee engagement initiatives, defined the human resource landscape in 2023. A
total of approximately 5,200 hours were dedicated to diverse technical, behavioural
safety, and leadership training, with the Lakshya manufacturing excellence programme in
the supply chain providing an enriching external perspective.
Continuous investment in learning manifested through engagements with
Learning Labs, People Leader clinics, and enduring commitment to the focus@bp platform,
fostering career growth and better manager-subordinate relations. Internal candidates
successfully filled 45% of Company vacancies, emphasising talent development.
Recruitment practices in FY 2023 remained committed to diversity, with
women holding 20% of managerial positions and an overall female employee representation of
16%. A workforce intervention resulted in a 4% increase in diversity in the workmen
category at the Patalganga plant. A newly formed team focused on enhancing Diversity,
Equity & Inclusion will strengthen these efforts further.
e Growth Week 3 initiative played a pivotal role in building
capabilities and skills aligned with your Companys cultural framework of ‘Who
We Are, featuring influential speakers such as Sanjeev Mehta from Standard Chartered
Bank and Anil Jayaraj, the CEO of Sports at Viacom 18 Media.
A proactive approach to safety leadership was evident through globally
featured sessions and discussions on leadership, courage, integrity, and feedback. We
participated in panel discussions, engaging audiences on the importance of safety,
understanding business risks and psychological safety, and delivering the plan as crucial
elements of ‘Playing to Win.
e Changemaker Community, comprising over 40 enthusiastic participants,
actively contributed to embedding your Companys cultural framework and fostering an
environment where innovative ideas come to life.
e Changemaker Community drove the ‘Who We Are cultural
framework forward through a series of engagements during Growth Week 3 in FY 2023.
As part of the internal audits review of controls, a thorough
assessment of critical controls in human resources and legal compliance were conducted to
ensure the controls design and operating effectiveness.
Cordial relations with internal and external stakeholders, including
workmen and contractors, were cultivated through senior leadership engagement via town
halls, team meetings, and recognition programs. Your Company prioritised mental health
initiatives, complementing physical well-being efforts for comprehensive employee
wellness. As of 31 December 2023, your Companys dedicated workforce comprised 630
employees, including factory workers.
Health, Safety, Security and Environment (HSSE)
In FY 2023, your Company placed paramount importance on the health and
safety of its workforce, aligning with all relevant laws and regulations. Health and
Safety are core tenets of the Companys vision, representing our License to
Operate. e commitment and strict adherence to the HSSE policy are expected from every
member of the Company. Your Companys leadership conducts monthly Health & Safety
Performance reviews, underscoring our vigilance towards these critical aspects. Your
Company operates within a robust Health & Safety framework, embodied in the Operation
Management System (OMS), as a guiding force for procedures and compliance. e Leadership
Team actively ensures compliance with OMS through visible Safety Leadership engaging in
field inspection programs. Safety Leadership Principles have been instituted, emphasising
a commitment to cultivate a culture of care. An annual review protocol for key risks and
controls strengthens controls/barriers and continues to a structured risk management
program. e introduction of Life Saving Rules focuses on proper evaluation and control
implementation for high-risk activities, striving towards zero harm. All three of Castrol
Indias manufacturing plants hold certifications for the Environment Management
System (ISO 14001:2015), Occupational Health and Safety Management System (ISO 45001:
2018) and Quality Management System Standard (ISO 9001:2015), with two plants additionally
certified with Automotive Quality Management System IATF 16949:2016.
In FY 2023, your Companys manufacturing plants consistently
demonstrated robust HSSE performance, earning external recognition, including the
‘Golden Peacock and Directorate Industrial Safety and Health (DISH) Award for
the Patalganga site, ‘Apex Safety Award for the Silvassa Plant, and the
‘ICC Safety Award for the Paharpur Plant. e Chemical Management Services (CMS),
where we are engaged with our customers to support lubrication activities at the site,
achieved 11 years of injury-free operations, underlying our commitment to safety.
e comprehensive Driving Safety and Transportation Policy, applicable
across all businesses in India, strives for the safety of every individual every day.
Implementing the SMART (Safe from the Moment You Start) program for employees driving for
business purposes has led to consistent year-on-year improvement in driving safety
records. In FY 2023, as part of resource optimisation, your Company focused on reducing
energy, water and waste to minimise its environmental footprint. Several initiatives align
with our global PATH360 sustainability framework. Additionally, compliance with Plastic
Waste Management Rules was upheld, exceeding the set requirement by recycling 100% of the
overall plastic used in packaging.
| On behalf of the Board of Directors |
| Sandeep Sangwan |
| Managing Director |
| DIN: 0861771 |
| Deepesh Baxi |
| Chief Financial Officer & Wholetime Director |
| DIN: 02509800 |
| Place: Mumbai |
| Date: 1 February 2024 |
+91-9892691696
