gulf oil lubricants india ltd profit loss cash flow Management discussions


Global Economy

Global gross domestic product (GDP) growth of 3.4% in 2022 remained better than anticipated, despite formidable headwinds from geo-political issues, higher cost of living, and a slowdown in large emerging markets. Throughout the first half of the year, resilient demand and labour market constraints in major Advanced Economies (AEs), coupled with the ongoing Ukraine-Russia conflict and Chinas dynamic Zero-COVID policy, led to elevated commodity prices and inflationary pressures. As the year unfolded, however, commodity prices began to adjust due to a more subdued growth outlook, coordinated tight monetary policies, and reduced fiscal stimulus measures. Consequently, the momentum of inflation started to ease. Nonetheless, persistent robust demand conditions continued to contribute to relatively elevated levels of inflation.

Although many of these factors are still relevant, the recent re-opening of China brings some respite and could trigger a rapid rebound in activity. Growth was driven by emerging markets and developing economies, especially India and China, while advanced economies stagnated.

According to the International Monetary Fund (IMF), global GDP growth is projected to reach its lowest point at 2.8% in 2023 and stabilise at 3.0% in 2024. The reopening of Chinas economy has played a significant role in facilitating a faster recovery than initially anticipated. In the United States, easing inflation and robust employment figures indicate a relatively smooth economic transition. On the other hand, the Euro Area is expected to experience sluggish growth in the near future.

Indian Economy

After the COVID-19 outbreak, India was quick to get back on the pre-pandemic growth trajectory, surpassing the UK to become the fifth-largest economy in the world. As per the National Statistical Office, the Indian economy grew at 7.2% in FY 2022-23, compared to 9.1% in FY 2021-22. Although this is still a slowdown from the previous year due to the current global scenario, the economy remained resilient owing to solid domestic demand and an uptick in private consumption.

Indias inflation trajectory also remains relatively moderate which augured well for RBI, leading the regulator to pause rate hikes sooner than many economies and prompting growth to take early leads.

The Governments continued thrust on massive public capital expenditure to attract private investment and boost demand bodes well for its long-term fiscal health. Additionally, supportive industrial policies like the Production-Linked Incentive (PLI) scheme are playing a crucial role in enhancing the competitiveness of domestic manufacturing and services, while also generating significant employment opportunities. With global businesses looking at diversifying their supply chains beyond China, India is in a sweet spot to become a manufacturing hub for the world.

Manufacturing PMI rose from 55.3 in February 2023 to 56.4 in March 2023 at a three-month high driven by increased new orders and output, resilience in demand and reduction in cost pressures. Despite inflation trending higher through the year, a mix of improved chip supply, higher incomes, and pent-up demand, especially for SUVs supported sales of Indian automakers.


India is projected to grow at a rate of 6.5% in FY 2023-24, making it the fastest-growing major economy globally. Higher public sector capex, coupled with fresh capital investments by the private sector, will help drive medium- term growth, while digitalisation and efficiency-enhancing reforms will drive productivity. The long-term growth drivers of the economy remain intact, with a large and fast-growing middle-class driving consumer spending.

The rapidly growing domestic consumer market as well as the large industrial sector have made India an important investment destination for a wide range of multinationals across manufacturing, infrastructure, and services.


Lubricant Industry

India is the worlds third-largest and one of the worlds fastest-growing lubricant markets after the US and China. According to Klines Global Lubricants 2022: Market Analysis and Assessment report, Indias lubricant market will grow at a CAGR of 3% through 2027 The expansion of the manufacturing industry, rising vehicle sales, favourable demographics, infrastructure development, and government support are key factors propelling the markets growth, despite decarbonisation. As per Kline, The market value is expected to grow at an even higher CAGR of 6.0% during this period with increased consumption of high- value low-viscosity synthetic products. The Indian market is categorised into three broad segments of automotive, industrial, including marine applications, and process/white oils, with automotive and industrial segments together accounting for two-thirds of the total market.

Growth Drivers

• Growing GDP and domestic consumption leading to increased vehicular movements

• Growing vehicle demand arising from low per capita vehicle penetration in India

• Rising brand consciousness

• Advancement of engine technology

• Accelerated investment in infrastructure building

• Implementation of various industrial reforms

• Recent policy interventions to attract more manufacturing bases shifting to India

Gulf Oil is one of the top brands in the lubricant industry and has a key presence in the open market through a stellar distribution network. At Gulf Oil, we cater to all the segments of the lubricant industry (except process/white oils), the details of which have been elaborated in the respective sections.

Automotive Segment

The demand for automotive lubricants has a direct correlation with on-road vehicle movement, as well as the growth of vehicle population and automobile sales. The Indian automobile industry concluded FY 2022-23 on a positive trajectory, showcasing resilience by overcoming the adversities brought about by the COVID-19 pandemic, weak demand, and supply chain limitations. It has demonstrated a robust resurgence, benefiting from the revival of economic activities and improved mobility. The automotive lubricant market is dominated by Diesel Engine Oils (DEO), followed by Motorcycle Oils (MCO), Passenger Car Motor Oils (PCMO), and other allied lubricants.

As per leading market experts, all categories in automotive lubricants have made a complete recovery from the decline in demand due to the pandemic.

Domestic Sales Performance

(In Numbers)

Category 2020-21 2021-22 2022-23
Passenger vehicles (PVs) 27,11,457 30,69,523 38,90,114
Commercial vehicles (CVs) 5,68,559 7,16,566 9,62,468
Three-wheelers (3W) 2,19,446 2,61,385 4,88,768
Two-wheelers (2W) 1,51,20,783 1,35,70,008 1,58,62,087
Quadricycles (12) 124 725
Total 1,86,20,233 1,76,17,606 2,12,04,162

Source: Society of Indian Automobiles Manufacturers (SIAM)

Personal Mobility

Indias large population, moderate vehicle penetration levels, and favourable demographics contribute to the growth of the Personal Mobility Segment in India.

Passenger Car Motor Oils (PCMO)

In FY 2022-23, the passenger vehicle (PV) segment achieved its highest-ever sales, surpassing 3.9 million units. This growth can be attributed to two main factors: robust demand and the easing of supply chain constraints. Petrol consumption has consistently grown by more than 10% y-o-y since April 2022, indicating an increased demand for Passenger Car Motor Oil (PCMO). Other factors contributing to PCMO growth include the preference for personal mobility fuelled by increasing business and leisure travel, rising disposable income and also inadequacies of public transport in India. The demand for advanced formulations is on the rise as OEMs are recommending low viscosity grades which necessitate the use of fully synthetic lubricants, and also the vehicle owners are becoming increasingly aware of the importance of using high-quality lubricants to protect their engines, contributing to both value and a strong volume demand for PCMO in India.

Motorcycle Oils (MCO)

Two-wheelers account for a majority of vehicle sales in India, with significant demand from both urban and rural areas. This augurs well for the growth of MCO in India.

India is also a huge market for premium two-wheelers, as one-half of global 250cc to 700cc sales are from India, this is unlocking untapped value growth in MCO. Besides, rural demand also remained subdued in FY 2022-23 due to inflationary pressures on consumers wallets. These trends resulted in lower demand indication for MCO in FY 202223. On an overall basis, MCO recorded positive growth last year.

Commercial Vehicles and Tractors

The commercial vehicle segment witnessed a major upturn in sales volume in FY 2022-23, growing at a rate of 34%, driven by robust demand and growth in major economic activities, including infrastructure and construction industries. Tractor sales in India have surpassed their all-time records of selling tractors and witnessed an increase of 12% from the previous years sales. The implementation of new emission norms for the off-highway (mobile) segment, such as Tractor Engines (TREM) and Construction Equipment Vehicles (CEV), is driving usage of higher quality lubricants. The overall growth in sales of Commercial Vehicles, improved commercial vehicle movement at the back of pick up in construction and buoyant tractor sales led to positive volume growth in Diesel Engine Oils (DEO).

Industrial Segment

The demand for lubricants from the industrial sector has increased over the years. Government initiatives such as Atmanirbhar Bharat, PLI, and Make in India and global strategy like China Plus One have increased industrial push significantly. The increasing need for automation and strong growth in industries support the adoption of lubricants. In the industrial sector, lubricants are used for numerous applications in various industries including construction industry, auto components, textile, power generation, mining, food processing, light heavy engineering, marine operations, and metal working.

Key Trends Impacting the Market

• Increasing domestic production and sales to uplift industrial lubricant demand

• Surging demand for specialised lubricants to meet complex industrial needs will bolster industrial lubricant sales

• Higher adoption of automation and other advanced technologies set to create new opportunities for lubricant manufacturers

• Growing usage of heavy construction machinery to power up industrial lubricant sales

Infrastructure Segment

India is witnessing solid infrastructure development with rapid expansion of roads, bridges, railways, metros, commercial and residential buildings, and industries. Notably, an increase in capital expenditure on infrastructure investment by 33%, amounting to H10 lakh crore for 2023-24 and representing 3.3% of the GDP, is expected to significantly stimulate the economy. Over the

past few years, various schemes have been introduced to drive growth in the sector. These initiatives include the National Infrastructure Pipeline (NIP), the National Monetisation Plan (NMP), Gati Shakti, and the National Single Window System (NSWS). With a multitude of ongoing and proposed projects, the lubricants industry is poised for immense growth, finding applications in both on-highway vehicles and off-highway construction equipment, with substantial opportunities in this rapidly expanding sector.


Base Oil, a critical raw material for Lubricants production, is closely linked to crude oil prices, and its fluctuations directly influence profit margins. The ripple effect of the Russia-Ukraine conflict reverberated globally, leading to supply chain disruptions and rising commodity prices, including crude oil. As expected, Base Oil prices followed the trajectory of crude oil prices, albeit with a lag. Throughout the year, there was consistent pressure on input costs due to upward movements in crude oil and additive prices, coupled with overall inflationary trends. Although there was some relief with softening of certain input costs like Base Oil by the end of the first half, rising additive costs continued to impact margins significantly, remaining considerably higher than in previous years and affecting the overall cost of products.

Despite these challenges, Gulf Oil adeptly managed the impact of escalating raw material prices caused by the aforementioned factors. Proactive monitoring of input cost movements, particularly raw material prices, allowed us to implement adjusted pricing strategies from time to time, effectively mitigating the impact on profitability to a large extent.



Opportunities Threats
• Indias automobile sector is poised for robust growth, with strong prospects for expansion and overall economic growth. • Highly competitive sector
• Possibility of aggressive pricing and discounts being offered by competitors
• Adoption of new emission norms and enhanced focus on fuel efficiency drives usage of higher-quality lubricants and value growth
• Sudden and sharp volatility in prices of key raw materials
• Growth of EV sector might lead to slower growth in the lubricants sector after few decades.
• Evolving technology as well as customer requirements Faster adoption of lighter viscosity engine oils and synthetic oils in automotive
Opportunities Threats
• Significant potential to ramp up rural penetration of automobiles • Increase in commodity prices affecting the profitability of the industry
• Scope to improve our market share across growing segments including PV, LCV, Synthetic categories
• Fluctuating exchange rates affecting the pricing and imports of raw materials
• Expansion of our reach across various channels and geographies as our brand strength is quite robust
• Geopolitical tensions affecting international trade and business operations
• Development of innovative products to adapt to changing market requirement
• Shift in customer preferences from public transport to private transport
• New-age customers with an evolving mindset and brand consciousness
• Government initiatives to boost domestic manufacturing and exports
• Vehicle Scrappage Policy to replace old fleets with new requiring better lubricants
• Increasing consumer preference for SUVs and premium vehicles
• Increasing focus on localisation and supply chain optimisation
• Decarbonisation creating demand for EV fluids or e-fluids
Industrial and Infrastructure
Opportunities Threats
• Scope to deepen share of wallet with existing customers and new customers - direct and via distributors to increase overall market share • Any slowdown in industrial activity can impact growth.
• Slowdown in Auto Ancillaries
• Geopolitical instability can affect input costs in infrastructure and mining, with fluctuations in prices of key materials like cement, steel, and fuel
• Indias prominent role in infrastructure development,

encompassing green highway projects, port expansions, and focused growth in sectors like roads, railways, urban housing, and airports

• Aggressive pricing strategy by competitors
• Significant growth potential in sectors such as transportation, energy, and manufacturing • Inability to continuously work on new product segments
• Atmanirbhar Bharat, Make in India, Smart Cities Mission and China Plus One initiatives will increase industrial push significantly
• New projects and one-time Initial Fill opportunities in both direct and indirect business
Opportunities Threats
• Potential to ramp up in existing markets and enter select attractive markets • Any slowdown in economic activities due to global adverse events
• Chennai plant can cater to nearby countries more efficiently • High freight charges for exports and disrupted supply chain.
• Opportunities of exporting products branded by Indian OEMs to their export markets • Unprecedented high volatility in the forex market
• Rising inflation and input costs may impact Indias export competitiveness
• India can be an export hub for many products given recent push for manufacturing by the Government
• Geopolitical tensions between India and certain trading partners may negatively impact exports


Gulf Oil Lubricants India Limited (Gulf Oil), a part of the Hinduja Group, is a well-established player in the Indian Lubricants Industry. Gulf Oil is part of Gulf Oil International, the parent company, which represents the globally renowned Gulf brand across more than 100 countries (excluding the USA, Spain, and Portugal).

With a powerful brand reputation, Gulf Oil has become the second-largest lubricant brand in the country, securing a significant market share in the private sector. Our business is divided into automotive, industrial, and exports. Having developed a strong presence in the open market, we have established a robust distributor network across India, enabling direct supply to over 40 Original Equipment Manufacturers (OEMs) and 500+ B2B customers, including industries, infrastructure sectors, mining enterprises, fleet customers, state transport agencies, and government undertakings.

Striving to be a leader in the lubricants industry, Gulf Oil prioritises innovation, sustainability, and customer satisfaction. Equipped with state-of-the-art research and development facilities and a dedicated team of experts, we continually push the boundaries to develop new and improved products that meet the evolving needs of our customers. Further, we actively seek partnerships with key industry players to fortify our market position and strengthen our global presence.

With a powerful brand, diverse product portfolio, and an unwavering commitment to innovation, we are well-poised to maintain our leading growth position in the lubricant industry. We are dedicated to delivering quality and value to our customers, driving growth, and powering the future of the industry.


Strong Brand:

• With a century-long heritage in the fuel and lubricant sector, Gulf Oil is a renowned trusted brand globally.

• Prestigious legacy in motorsports and sports partnerships with Williams Racing and Chennai Super Kings.

• Brand ambassadors M.S. Dhoni, Hardik Pandya, and Smriti Mandhana have been playing a pivotal role in strengthening Gulf Oils brand.

Diverse Product Portfolio:

• Comprehensive and wide product portfolio across automotive, industrial, and marine applications with approvals from API, JASO, ACEA, and leading global OEMs.

• Growing 2W Battery business, expanding the product portfolio to meet evolving customer needs.

• Front runner in the supply of Adblue?, a highly environmentally friendly product that reduces the emission levels of hazardous NOx from vehicles.

Technologically Advanced Products:

• Gulf Oil has a dedicated team of experts working to develop new and improved products.

• Pioneer of the ‘long drain interval value proposition, creating strong positions in the Diesel Engine Oil and 2-Wheeler Motor Oil markets.

• Superior technology and ever-evolving innovations to produce world-class lubricants; large R&D team based in India

Strong Relationships with OEMs and B2B Customers:

Collaborations (long standing) with top OEMs (~40) and B2B (500+) customers


Silvassa Plant and Chennai Plant

• Lubricants manufacturing capacity: 90,000 KL per annum (Silvassa), 50,000 KL per annum (Chennai)

• AdBlue? manufacturing capacity: 20,000 KL per annum (Silvassa), 18,000 KL per annum (Chennai), equipped with error-proofing online quality monitoring systems

• Key Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, and IATF 16949:2016

• NABL-accredited advanced and fully equipped Quality Control labs at both plants with Standard ISO/IEC 17025:2017 certification

• State-of-the-art blending technology

- World-class fully automatic PLC-enabled blending operations, High-speed end-to-end fully automatic filling machine, Fully automatic blow-moulding machines including recycler (Silvassa)

- ABB Frances Simultaneous Metered Blender (SMB), Automated Batch Blender (ABB), completely piggable manifold, Drum Decanting Unit (DDU), integrated by Lubcel TM Manufacturing Execution System (Chennai)

• Advanced Automated Storage and Retrieval System (ASRS) in both plants

• Committed to sustainability with initiatives such as rainwater harvesting, solar power generation, air emissions reduction, water recycling, waste management practices, and reduced energy consumption initiatives

• Plant approved by many Indian and global OEMs in both locations

• New global R&D Centre: (Chennai)-Gulfs biggest facility globally

• Customer Experience Centre: (Chennai)-the first-of-its- kind in India


Gulf Oils performance in FY 2022-23 was marked by strong volume growth across all key business segments. We experienced market share gains in B2C, B2B, and OEM segments, with a strong volume growth of 15% outpacing the industry by more than 3-4 times. Our core lubricant volume stood at 136 million litres. We achieved net revenue of H2,999.10 crore, representing a significant y-o-y growth of 37%. Additionally, our EBITDA reached H342.84 crore, exhibiting y-o-y growth of 20%. Our PAT stood at H232.30 crore, showcasing a y-o-y increase of 10%. Double-digit volume growth was observed in both B2C and B2B segments, supported by price adjustments, leading to higher revenue growth. We focused on re-booting our B2C segment and implemented region-wise efforts, including restructuring the sales leadership structure and prioritising category and market share expansion paving the way for renewed growth in this segment.


• Witnessed exceptional volume growth at 3-4x the industry rate, with both our B2C and B2B segments experiencing double-digit volume growth

• Recorded robust Channel Retail growth, along with substantial growth across OEM, Industrial,

Infra, Exports, and Battery verticals, propelling our overall upward trajectory

• Achieved significant market share growth across all segments, reinforcing our position as a leading player in the industry

• Achieved a remarkable 20% growth in EBITDA despite navigating a year of challenging input costs in a hyperinflationary environment

• Prioritised margin management in the face of rising input costs, adopting effective strategies to balance volume growth, monitor input costs, adjust pricing, optimise operations, and enhance profitability, ensuring we maintained a competitive edge in the market

• Launched notable products, such as 1000 Hours Gulf XHD Supreme+ in the agri segment and value range Gulf Zipp Smart and Gulf Zipp Plus in the motorcycle engine oil segment, catering to specific customer needs and preferences

• Established a strong foothold in the electric vehicle (EV) market, with our Gulf EV fluids gaining traction and leading to partnerships with multiple EV OEMs. We successfully launched EV fluids for Piaggio and Switch Mobility, solidifying our position in this rapidly evolving market

• Garnered significant traction in sales of AdBlue? growing more than 300% over last year.

Leveraging our extensive distribution networks and partnerships with OEMs, this positions us, positioning as a frontrunner in the market

• Experienced rapid growth in our battery business, driven by our commitment to delivering better quality products and expanding our market presence in this promising sector

• Successfully revitalised our distribution network through strategic initiatives and leveraged the role of Gulf Bikestops and Gulf Carstops to drive volume growth and enhance customer reach in the re-booted B2C and Channel Retail business

• Implemented impactful brand initiatives, including the Gulf Fan Academy and new collaborations with cricketer Smriti Mandhana, driving brand affinity and engagement among our valued customers

• Our digital transformation initiatives made significant strides, with focused and accelerated implementation across various aspects of the business, boosting capabilities and efficiency.

Automotive Segment


Gulf Oil demonstrated resilience and experienced strong growth in the B2C segment, with improved demand across various categories. As part of our robust distribution expansion initiative under the theme "Reenergise. Re-connect. Re-boot", we extended our reach to customers across diverse regions. We prioritised trade reconnection after the pandemic, actively rebuilding relationships with partners, distributors, and retailers to ensure a seamless supply chain. Regional conferences were conducted to directly connect with distributors and primary customers, fostering a better understanding of challenges and opportunities. Rigorous customer meetings were held to ensure reconnection and drive growth.

Implementing region-specific strategies further optimised our growth potential by addressing unique demands and preferences in different geographies. Through extensive below-the-line (BTL) activations, we directly engaged with over 1.5 lakh customers, including mechanics, retailers, and end consumers, effectively communicating our brand and product values.

Our distribution footprint expanded to over 80,000 outlets, and we revitalised our independent workshops with ~10,200 car and bike stop locations. To cater to rural markets, we established 1,000+ Gulf Rural Stockists (GRS), and our pan-India distribution network continued to grow by 10-15% annually. To sustain growth momentum in the rural market, we implemented automation by ensuring all rural customers had Dealer Management Systems (DMS), enhancing efficiency and effectiveness in serving our rural customer base. These initiatives have enabled us to solidify our presence in the B2C segment and fuel our continued growth.

Personal Mobility

We achieved a robust double-digit growth in the personal mobility segment. We encountered challenges in the MCO category due to escalating prices and consumer response. Incentivising mechanics and introducing economical MCO products helped drive growth and cater to diverse consumer needs. The Passenger Car Mobility Oil (PCMO) segment expanded, particularly in the synthetic range, driven by market demand.

We strategically introduced economical MCO products Gulf Zipp Smart and Gulf Zipp Plus with distinct specifications and price points to offer more value to customers. Further, our comprehensive media campaign for Gulf Pride highlighted its CVP of "Instant pick-up." Targeted media campaigns and retail display drives garnered enthusiastic participation from thousands of retailers in the after-market and further boosted the MCO category.

Collaborating with M.S. Dhoni and CSK, we launched digital campaigns showcasing our personal mobility products and enhancing brand visibility. Additionally, the Gulf Fan Academy initiative during the Indian Premier League 2023 season featuring M.S. Dhoni, Hardik Pandya and our new brand ambassador—Smriti Mandhana—had a significant impact, fostering brand affinity, increasing consumer engagement, and further solidifying our leadership in the personal mobility segment.

Commercial Vehicles and Tractors

In the Commercial Vehicle Oil (CVO) category, we witnessed strong demand, and our campaigns targeting truckers, featuring the popular face of M.S. Dhoni, received overwhelmingly positive responses, contributing to increased sales. Our Gulf Duramax and Gulf Superfleet Turbo+ engine oils were effectively promoted through regional language communication, with Gulf Superfleet Turbo+s customer value proposition of "Superior Protection" simplistically communicated as a Truck ‘Engine ka Vaccine. Additionally, we executed a focused BTL campaign for Gulf Duramax, targeting mechanics in 25+ key trucking hubs, effectively driving sales.

Notably, Season 4 of Gulf Superfleet Suraksha Bandhan garnered widespread appreciation, providing healthcare and insurance coverage to over 10,000 truckers, showcasing our commitment to the well-being of the trucking community.

In agri sub-segment, which demands tractor engine oils, we experienced a revival after a relatively lean period.

We successfully conducted tractor oil change camps in rural areas, driving trials and purchases. Furthermore, the introduction of Gulf XHD Supreme+ engine oil with an industry-leading 1,000-hour drain interval in the agri segment reduced maintenance frequency and costs showcasing our commitment to delivering value to tractor-owning farmers. Tractor engine oil change camps further promoted the USP of the Gulf XHD Supreme+ 15W-40 sub-brand.


AdBlue? is a complimentary product to CVO, with its usage mandated in all diesel BS-VI diesel vehicles. Gulf Oil has emerged as a frontrunner in meeting the rising demand for AdBlue? from both OEMs and the aftermarket. AdBlue? is an environment-friendly product which effectively reduces the emission of hazardous NOx from vehicles. The AdBlue market is positioned for high double-digit growth attributed by increasing emissions regulations, growing adoption of SCR technology, expansion of the commercial vehicle market, and rising environmental awareness. We aim to achieve a breakthrough by enhancing internal and external capacities through plant expansions, satellite plants, and IBCs. Our commitment to serving world-class OEMs further strengthens our position in this segment.


Gulf Oil has achieved high double-digit growth in the OEM segment, solidifying its leadership position. With positive traction in Franchise Work Shops (FWS), Factory Fill and Exports, this segment remains an important growth driver for the company. During the year our partnerships with renowned OEMs have expanded significantly. We identified and have built a unique business opportunities pipeline, which will help in boosting future growth.


Gulf Oil is poised for continued market share growth in the automotive sector. With a robust product portfolio, extensive distribution network, and unwavering commitment to research and development, we have built a trusted brand renowned for top-quality lubricants. This positions us favourably to capitalise on emerging industry trends and norms, drive expansion, and cater to diverse automotive applications. Furthermore, our strategic focus lies in fortifying our distribution network, ensuring seamless access for customers across the nation.

Industrial Segment

Gulf Oils industrial business segment has shown robust growth, serving diverse industries such as power generation, steel, cement, mining, and general manufacturing. This segment has become a strong pillar for us, achieving high double-digit growth by increasing the share of premium products and improving the product mix. With a renewed focus on the metal and plastic industry, we have witnessed a significant contribution from these sectors to overall sales. The segments success can be attributed to strong partnerships with renowned customers like Tata Steel, JSW, Bhushan Steel & Power, ZF Steering India Ltd, GKN Driveline, AAM, and Dana, boosting market share in the steel and automotive components industry. Collaborations with leading OEMs such as Yizumi, Isgec, Elecon, and Thermax have solidified our position as a trusted provider of lubricant requirements. Expansion into the textile segment with Knit 22 Super has further increased our market presence. Our indirect business with a network of ~70 distributors and 100+ direct selling representatives, has also thrived, with the addition of 12 new distributors across strategic locations and successful digital transformation using Tally DMS, supported by training and development initiatives for distributor management.


Our industrial segment outlook is highly promising as we cater to various industries and have witnessed substantial growth. With a strong brand, advanced technology, and an excellent sales team, we have been successful in capturing a significant portion of the market. We are currently targeting a good market share expansion and anticipate favourable opportunities in sectors such as steel, cement, textiles, plastics, and more.

Infrastructure, Mining, and Fleet Segment

Accounting for 7-8% of our volume, this segment has opened up new business opportunities. Our commitment to innovation, customer-centricity, and environmental responsibility is evident in the successful launch of specialised lubricant offerings for cutting-edge construction technologies like Tunnel Boring Machines (TBMs) and Piling Rigs. We have also developed tailored products for the port sector, prioritising efficiency and performance in maritime logistics. Gulf Oil leads in environmental sustainability by providing environmentally friendly lubricants like Zinc-Free hydraulic oil, and to facilitate compliance with emission norms we have developed advanced engine oils. Our differentiated approach of personalised solutions, total cost of ownership approach, strong supply chain, and conditional oil monitoring programmes set us apart in the competitive market, delivering exceptional value to our customers.


The outlook for the infrastructure, mining, ports, and OEM sectors is highly optimistic. With robust and consistent growth in these sectors and significant investment announced by the Government in infrastructure over the next decade, we anticipate high double-digit growth in the coming years.


Our risk management policy encompasses various categories of risks, including corporate, operational, financial, human resources, and legal and compliance risks. We have developed a comprehensive identification and mitigation strategy for each of these risks.

Risk Mitigation Strategy Key


Slowing demand in key business segments
Our performance can be affected by a slowdown in demand and increased competitive intensity in the cyclical segments we operate in. Over-reliance on any of these segments exposes us to volatility in demand. Our primary focus is on achieving an optimal combination of products and business segments, allowing us to consistently generate improved profit margins and achieve high growth rates. Business


Constant upgradation in technology
The ongoing advancements in technology are disrupting various industries, emphasising the need for greater efficiency and the introduction of environmental-friendly products. Failure to promptly adapt to these trends can have a negative impact on our performance. Additionally, our failure to diversify in a timely manner could pose long-term risks to certain business segments. We closely monitor and actively respond to industry developments, ensuring that our products incorporate the latest advancements in lubricant technology, meeting global standards. Gulf has been a pioneering force in introducing high-quality, long-lasting lubricants to the Indian market. Technology, Global R&D
Rising prominence of electric vehicles
The increasing global acceptance of electric vehicles (EVs) may impact the demand for lubricants. However, in India, penetration of EVs is in the nascent stage due to challenges related to infrastructure, charging facilities, high costs, limited government funding, and selective regulations. We believe that the overall demand for lubricants in India remains significant and will continue to grow. However, there may be partial impact in certain segments over a longer period. Leveraging our brand and distribution strengths, we prioritise expanding our market share in B2C segments, particularly PCMO, where substantial growth opportunities lie ahead. In the B2B segment, our focus centres on accelerated growth, and rapidly increasing market share in industrial sectors and introducing more specialised products. Additionally, we are implementing a robust diversification strategy to capitalise on opportunities related to allied products and the EV value chain. The initiatives by Gulf Oil International to develop EV fluids and venture into related business areas will also help mitigate associated risks. All


Volatility in base oil prices and the INR
Rapid and adverse fluctuations in crude oil prices, which in turn affect base oil prices, can have a negative impact on our profitability. As we rely more on imports than exports, we are susceptible to unfavourable movements in the INR. Additionally, continuously increasing additive prices pose a threat to our profitability. Our comprehensive hedging policy, designed by forex experts, enables us to closely monitor and make timely corrections, if necessary. We are also increasing our exports to partially offset potential risks. Furthermore, we have established multiple options for sourcing raw materials and are actively seeking new vendors to maintain competitive pricing for imported materials. We work closely with additive companies and continuously collaborate with customers to enhance our product formulations. Procurement and Finance
Inability to maintain robust IT systems
Any delays in maintaining and upgrading high-quality, timely, and reliable Management Information Systems (MIS) can hinder our decision-making process. Failure to embrace digitalisation promptly can also affect customer satisfaction. Across all our business segments, we are embracing cutting- edge digital solutions to remain at the forefront and provide superior service to our customers, thereby enhancing their overall experience. Information


Inability to keep teams motivated
Employees with low morale are unable to contribute to our success and are more likely to switch organisations frequently. Such circumstances can negatively impact our performance. We are dedicated to creating a growth-oriented environment for our employees. We undertake various initiatives to motivate, train, retain, and attract talent, ensuring that we have well-defined policies in place that offer equal opportunities for everyone. Board and



Risk Mitigation Strategy Key


Weakening of brand reputation
A decline in brand recall and weakening share of voice pose significant risks and can hinder our prospects and ability to capture market share. We consistently invest in strengthening our brands, improving brand scores, and creating strong brand recall. Regular brand tracking exercises help us monitor our progress. We strive to leverage our brand assets and brand ambassadors in innovative ways, both in India and globally, to increase our visibility among customers. Marketing
Inability to comply with regulations and/or maintain high levels of governance
Non-compliance with regulations exposes us to reputation risks and affects our ability to conduct business impacts our valuations. Weaknesses in monitoring regulations, enforcing compliance, and conducting audits can lead to breaches and damage our reputation. We maintain strict adherence to all applicable regulations and follow best-in-class governance practices to ensure ethical conduct and sound corporate governance. Board of Directors, Legal and Compliance, and Finance


Our commitment to creating a growth-oriented culture for our employees includes various measures and activities aimed at enhancing their skills and preparing them for the future. Our policies, such as the Code of Conduct and the Prevention of Sexual Harassment in the Workplace (POSH), are designed to promote employee confidence. In FY 2022-23, there was one sexual harassment complaint. We communicate with our employees through various channels, such as town halls, digital platforms, posters, team meetings, and e-mailers.

Employee Wellness and Safety

• Implemented an integrated wellness programme that focuses on the overall well-being of employees, covering physical, emotional, financial well-being, and safety.

• We ensure a safe work environment, conduct awareness programmes on well-being and safety, and provide various options for financial and social security, including insurance and flexible compensation structures.

Digital Transformation and Employee Experience

• Embraced digitisation to enhance employee experience and efficiency, utilising systems such as Employee Self Service (ESS), the GOLD Academy for learning and development, Hi-Net for employee communication, and ASPIRE and RMS portals for performance management and talent recruitment.

• Emphasise skill upgradation through online learning programmes, virtual learning journeys, and on-the- job training, preparing employees for future roles and fostering a purpose-led workforce.

Business Transformation

• Prioritise high-growth, customer-centric approaches, implement redefined business processes,

and embrace digital transformation to drive organisational transformation.

• Focus on new business initiatives and process improvements to fuel growth and maintain a competitive edge.

Talent Acquisition and Management

• Committed to attracting and retaining top talent, leveraging campus engagement programmes to strengthen brand and attract skilled professionals.

• Emphasise a culture of openness, experimentation, and performance to retain the right talent. We also implement talent management strategies, including succession planning and leadership competency framework.

Contract Employee Engagement

• Gulf Oil engages contract employees for short-term assignments, ensuring their insurance coverage and compliance with essential processes like trainings and background verification.

• Digitalised reimbursement and invoicing processes to provide a streamlined experience for contract employees.

Employee Stock Option Scheme (GOLIL ESOP 2015)

Equity-based compensation schemes have proven to be a successful method to incentivise and acknowledge our eligible staff. Such schemes enhance employee engagement and commitment, attract potential talent, and retain crucial resources within the company.

To achieve these goals, we have introduced the ‘GOLIL Employee Stock Option Scheme, 2015 for eligible employees. The schemes vesting schedule is in accordance with the plan approved by the Nomination and Remuneration Committee, and modifications may be made as necessary.

Completion of Tenure Total Grant of Eligible Employees
1 year 10%
2 years 15%
3 years 15%
4 years 60%

We have extended the coverage of the scheme to include several positions that are critical but below senior management level. The options granted under the scheme will be subject to certain vesting conditions, and upon satisfaction of these conditions, the options can be exercised, leading to the allotment or issuance of our equity shares.

Employee Relations

Throughout the year, employee relations at the Silvassa and Chennai plants remained amicable, and the majority of issues were successfully resolved through open dialogue. As of March 31, 2023, our workforce consisted of 592 employees.


We take pride in our strong internal control mechanism that ensures the accurate recording of transactions with internal checks and prompt reporting, and strict adherenc to applicable accounting standards, compliance with applicable statutes, policies, procedures, guidelines, and authorisations. In accordance with the Companies Act, 2013, we have successfully adhered to the specific requirements outlined in Section 134 (5)(e) of the Act. This entails establishing and implementing an Internal Financia Control (IFC) framework to ensure compliance with the Ac and support the Directors Responsibility Statement. The IFC framework document enables the consistent evaluatic of the effectiveness of controls.

Our internal audit department conducts periodic audits at all locations and functions based on the plan approved by the Audit Committee and promptly addresses any deviatio in internal control procedures. The summary of the interna audit observations and status of implementation are submitted to the Audit Committee every quarter for its review, and the concerns, if any, are reported to the Boarc As a part of their audit procedures, the statutory auditors review the efficacy and adequacy of the internal audit function and have full access to all the reports and finding of the internal audit.


Key Highlights (Standalone Audited Financials)

Gulf Oils revenue increased by 36.8% y-o-y to H2,99,910 lakhs as against revenue of H2,19,164 lakhs in FY 2021-22.

The Company achieved PAT of H23,230 lakhs for the FY 2022-23 as against H21,108 lakhs in FY 2021-22. The growth was achieved despite the retail markets experiencing sluggish demand conditions. During FY 2022-23, the Company gained market share across B2C, B2B, and OEM segments with volume growth at 3-4x of industry growth. Both B2C and B2B segments recorded double-digit volume growth for the year.

The Board of Directors have recommended a dividend of H25.00 per equity share (i.e. 1,250% on face value of H2.00 per equity share) for the FY 2022-23 subject to approval of members at Annual General Meeting.

Particulars Year ended March 31, 2023 Year ended March 31, 2022 Growth %
( in lakhs) ( in lakhs)
Revenue 2,99,910 2,19,164 37%
EBITDA 34,284 28,549 20%
PBT 31,270 28,434 10%
PAT 23,230 21,108 10%
EPS (Basic) FV - 2 per equity share 47.30 41.89 13%

Revenues (in J Lakh)

Revenue stood at H2,99,910 lakh in FY 2022-23 from H2,19,164 lakh in FY 2021-22. The revenue growth has been higher due to volume growth and several price increases taken to pass on the increased input cost

Breakup of Various Cost Items as a % of Sales

Year ended March 31, 2023 Year ended March 31, 2022
Particulars Lakhs % Lakhs %
Sales 2,99,910 100% 2,19,164 100%
Cost of goods sold 1,86,767 62.27% 131,208 59.86%
Employee Benefit Expenses 13,521 4.51% 11,678 5.33%
Manufacturing and Other Expenses 65,338 21.79% 47,729 21.78%
Total Expenses 2,65,626 88.57% 1,90,615 86.97%
EBITDA 34,284 11.43% 28,549 13.03%
Other Income 4,712 1.57% 4,419 2.02%
Finance Costs 3,764 1.26% 962 0.44%
Depreciation/Amortisation 3,962 1.32% 3,572 1.63%
PBT (Profit before Tax) 31,270 10.43% 28,434 12.97%
Tax Expenses 8,040 2.68% 7,326 3.34%
PAT (Profit After Tax) 23,230 7.75% 21,108 9.63%

a. Cost of Goods Sold

Cost of goods sold increased by 42.34% to H1,86,767 lakhs in FY 2022-23 from H1,31,208 lakhs in FY 2021-22 mainly due to a sharp increase in base oil prices which is key raw material for lubricants manufacturing and significant increase in other inputs like additives etc. As a result, cost of goods sold as a percentage to Net Revenue has also increased from 59.86% in FY 2021-22 to 62.27% in FY2022-23.

b. Manufacturing and Other Expenses

Manufacturing and other expenses increased by 36.89% to H65,338 lakhs in FY 2022-23 from H47,729 lakhs in FY 2021-22. The rise is mainly on account of increase in Advertising and Sales Promotion by H2,666 lakhs, a surge in Selling and Marketing Expenses by H8,078 lakhs, increase in freight and forwarding expenses by H3,964 lakhs.

c. Employee Benefit Expenses

Employee benefit expenses increased by 15.78% to H13,521 lakhs in FY 2022-23 from H11,678 lakhs in

FY 2021-22 driven by usual increments resulting in increase in payroll cost by H1,843 lakhs. However, employee cost as a percentage to revenue reduced to 4.51% in FY 2022-23 from 5.33% in FY 2021-22

d. Finance Costs

Finance costs increased to H3,764 lakhs in FY 2022-23 from H962 lakhs in FY 2021-22 which mainly includes forex loss of H2,017 lakhs in the current year due to sharp rupee depreciation due to the Eastern Europe crisis. Also, there was an increase in interest on foreign currency short-term bank borrowings by H1,003 lakhs as compared to previous year due to significant global interest rate increase.

e. Depreciation/Amortisation Charge

Depreciation/amortisation charges marginally increased to H3,961 lakhs in FY 2022-23 from H3,572 lakhs in FY 2021-22 mainly due to depreciation charge on assets capitalised at both plant locations, depreciation charge on intangible assets capitalised during current year and also due to increase in depreciation in respect of new right of use assets.

Balance Sheet (Standalone)

(H Lakhs)

Particulars As at March 31, 2023 As at March 31, 2022 Change
Property, plant and equipment 28,054 27,618 436
Other non-current assets (includes non-current financial assets) 12,201 6,904 5,297
Cash and bank balances 65,424 57,439 7,985
Current assets (includes current financial assets) 1,01,478 91,139 10,339
Total 2,07,157 1,83,100 24,057
Equities and Liabilities
Shareholders funds/Net Worth 1,17,844 104,270 13,574
Non-current liabilities (includes non-current financial liabilities) 4,789 3,853 936
Short-Term Borrowings 33,158 35,700 -2,542
Current liabilities (includes current financial liabilities) 51,366 39,277 12,089
Total 2,07,157 1,83,100 24,057

Property, Plant and Equipment

Net block of Property, plant and equipment (including CWIP) increased by H436 lakhs to H28,054 lakhs in FY 2022-23 from H27,618 lakhs in FY 2021-22 mainly due to addition of tangible assets at both plant locations net off usual depreciation charge on tangible assets (PPE) and also major addition in "Right of Use Assets" net off amortisation effects on "Right of Use Assets" due to Accounting Standard Ind-AS-116 on Leases.

Other Non-Current Assets (Includes Non-Current Financial Assets)

Other Non-Current Assets (Includes Non-Current Financial Assets) at the end of FY 2022-23 increased by H5,297 lakhs to H12,201 lakhs from H6,904 lakhs at the end of FY 2021-22 mainly due to conversion of loan note from Indra Renewable Technologies Limited (IRTL) into equity investment and recognised the fair value gain of H3,661.85 towards current and existing investments during the year.

Cash and Bank Balances

Cash and Bank Balances increased by H7,985 lakhs and stands at H65,424 lakhs at the end of FY 2022-23 as compared to H57,439 lakhs at the end of FY 2021-22 demonstrates very healthy cash position and liquidity strength.

Current Assets (Includes Current Financial Assets)

Current Assets (includes Current Financial Assets) at the end of FY 2022-23 increased by H10,339 lakhs to H1,01,478 lakhs from H91,139 lakhs at the end of FY 202122.

The overall inventory decreased by H460 lakhs to H47,170 lakhs in FY 2022-23 from H47,630 lakhs in FY 2021-22. Trade Receivables increased by H7,546 lakhs from H33,451 lakhs in FY 2021-22 to H40,997 lakhs in FY 2022-23. Other Current Assets increased by H3,253 lakhs from H10,058 lakhs in FY 2021-22 to H13,311 lakhs in FY 2022-23.

Net Worth

Net Worth at the end of FY 2022-23 increased by H13,574 lakhs to H1,17,844 lakhs from H104,270 lakhs as at FY 2021-22.

Decrease in Share Capital by H28 lakhs in FY 2022-23 at H980 lakhs from H1,008 lakhs as at FY 2021-22 mainly due to buyback of 14,16,667 fully paid up equity shares of the face value of H2/- at a price of H600/- per fully paid up Equity Share.

Securities Premium Account: The Securities Premium account balance stands at H7,521 lakhs at the end of FY 2022-23, which was H17,982 lakhs at the end of FY 2021-22. This reflects the share buy back concluded during the year.

Capital Redemption Reserve: The balance as of March 31, 2023, amounted to H28 lakhs (Nil in FY 2021-22) created due to buyback of shares in accordance with the provisions of Section 69 of the Companies Act, 2013.

Capital Reserve: The balance as of March 31, 2023 amounted to H5 lakhs, which was almost the same as at the end of FY 2021-22.

General Reserve as of March 31, 2023 stands at H9,362 lakh vis-a-vis H8,362 lakhs in the previous year

Retained Earnings: The balance in the Profit and loss Account (including other Comprehensive Income) as on March 31, 2023 was H25,987 lakhs vis-a-vis H21,205 lakhs as on March 31, 2022 out of which Final dividend of H2,451 lakhs for FY 2020-21 vis-a-vis H4,538 lakhs for FY 2021-22 was paid and H1,000 lakhs was transfers to general reserve.

Share options Outstanding Account as of March 31, 2023 stands at H1,077 lakhs vis-a-vis H573 lakhs in the previous year to recognise the grant date fair value of options issued to employees under Gulf Oil Lubricants India Limited - Employees Stock Option Scheme - 2015

FVOCI Equity instrument as of March 31, 2023 stands at H3,078 lakhs vis-a-vis H223 lakhs in the previous year as the Company elected to recognise changes in the fair value of certain investments in equity securities in the year.

Non-Current Liabilities (Includes Non-Current Financial Liabilities)

Non-Current Liabilities (includes Non-Current Financial Liabilities) at the end of FY 2022-23 increased by H936 lakhs to H4,789 lakhs from H3,853 lakhs as at FY 2021-22 mainly due to increase in lease liabilities by H278 lakhs and increase in deferred tax liabilities by H658 lakhs.

Current Liabilities (Including Short-Term Borrowings also includes Current Financial Liabilities)

Trade payables have increased by H11,991 lakhs to H39,065 lakhs in FY 2022-23 from H27,074 lakhs in FY 2021-22.

Short-term borrowings have decreased by H2,542 lakhs at the end of FY 2022-23 at H33,158 lakhs over the previous year FY 2021-22 of H35,700 lakhs, as during the current year, we have repaid the borrowings to that extent.

Further, we have a net cash (net of short-term debts) of H32,265 lakhs as on March 31, 2023 as against net cash balance of H21,739 lakhs as of March 31, 2022. This demonstrates that we continue to be Net Debt-free as on March 31, 2023.

Increase in lease liabilities by H634 lakhs to H1,836 lakhs in FY 2022-23 from H1,202 lakhs in FY 2021-22.

Increase in other financial liabilities by H349 lakhs to ?2,27? lakhs in FY 2022-23 from H1,929 lakhs in FY 2021-22.

Decrease in current tax liabilities by H958 lakhs and increase in Employee benefit obligations by H167 lakhs during the fiscal year.

Decrease in other current liabilities by H94 lakhs mainly due to decrease in refund liabilities payable by H108 lakhs and also decrease in Contract liabilities and increase in statutory liabilities by H14 lakhs (Net).


We broadly define liquidity as our ability to generate sufficient funds from both internal and external sources to meet our obligations and commitments. Our primary liquidity requirements have been to finance our working capital requirements for our operations and for capital expenditures and investments. We have financed our capital requirements primarily through funds generated from our operations.

Cash Flows

The table below summarises our cash flow for the periods indicated (Please refer cash flow statement for more details)

J Lakhs March 31, 2023 March 31, 2022
Net cash generated/(used) from operating activities 27,332 (2,373)
Net cash generated/(used) in investing activities 3,043 (1,731)
Net cash generate/(used) in financing activities (20,212) 9,816
Net change in cash and cash equivalents 10,163 5,712

Changes in Key Financial Ratios

S.r Key Ratios No As on 31 March, 2023 As on 31 March, 2022 Remarks/Responses
1 Debtors Turnover (Times) 8.06 7.91 No significant change*
2 Inventory Turnover (Times) 3.94 3.08 Due to better inventory and supply chain management.
3 Interest Coverage Ratio (Times) 8.06 25.97 Due to increase in Interest expenses in current year as compared to previous year mainly on account of exchange loss on foreign exchange borrowings
4 Current Ratio (Times) 1.97 1.98 No significant change*
5 Debt Equity Ratio (Times) 0.28 0.34 No significant change*
6 Operating Profit Margin (%) 10.11 11.40 No significant change*
7 Net Profit Margin (%) 7.75 9.63 No significant change*
8 Return of Equity (ROE - %) 20.92 22.08 No significant change*

There is no significant change (i.e. change of 25% or more as compared to the FY 2021-22) in the other key financial ratios.

Associate Company

During the previous year FY 2021-22, TechPerspect Software Private Limited ("TSPL") became an associate of the Company. With an objective to enhance the Companys presence and capabilities in e-mobility, the Company has acquired 26% of the paid-up share capital (on a fully diluted basis) of TSPL during the previous year FY 2021-22.

Accordingly, the Company has started preparing the consolidated financial statement. The performance and financial position of the Associate company for the financial year ended March 31, 2023 is provided in the prescribed format AOC-1 as per Annexure-I to the Boards Report.