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What is the story about?
Ravi Chawla, Managing Director and CEO of Gulf Oil Lubricants India, said the company expects to grow at two to three times the lubricant industry's volume growth rate in the financial year 2026-27 (FY27), driven by market share gains, demand across key segments and an ongoing capacity expansion programme.
The Mumbai-based lubricants and electric-vehicle (EV) fluids maker is increasing its manufacturing capacity by 70% to support growth plans over the next three to four years. Chawla said demand remained strong in April and May despite rising raw material costs linked to higher crude oil prices.
Gulf Oil reported record volumes in FY26, with lubricant volumes rising 10.5% for the full year and 14% in the March quarter, compared with the industry's estimated growth of 3-4%. The company expects its expanded capacity and stronger market presence to help sustain growth well above industry levels in the current financial year.
Gulf Oil's expansion comes as both its manufacturing plants are operating on a three-shift basis. The additional capacity is expected to provide room for future growth while improving operational flexibility.
The company is also dealing with rising input costs across packaging materials, base oils and additives. Chawla described the increase as unprecedented and said Gulf Oil has implemented price hikes across both business-to-consumer and business-to-business segments to protect margins.
Despite cost pressures, Gulf Oil remains confident about its supply chain position and its ability to serve more than 40 original equipment manufacturer (OEM) partners. The company believes supply security remains a key differentiator for customers and distributors.
The agriculture segment also continues to perform well, supported by both OEM workshop demand and retail sales. Chawla said Gulf Oil is expanding distribution and introducing new products to strengthen its presence in the segment.
Chawla said the company is preparing to participate in the emerging data center liquid-cooling market. Gulf Oil has developed two cooling-fluid products and is currently conducting validation tests with potential customers.
However, Chawla noted that data center cooling remains a small opportunity relative to India's broader lubricants market. Even with widespread adoption of liquid cooling, the segment would account for less than 1% of the country's automotive and industrial lubricants demand over the next few years.
For the full interview, watch the accompanying videoCatch all the latest updates from the stock market here
The Mumbai-based lubricants and electric-vehicle (EV) fluids maker is increasing its manufacturing capacity by 70% to support growth plans over the next three to four years. Chawla said demand remained strong in April and May despite rising raw material costs linked to higher crude oil prices.
Gulf Oil reported record volumes in FY26, with lubricant volumes rising 10.5% for the full year and 14% in the March quarter, compared with the industry's estimated growth of 3-4%. The company expects its expanded capacity and stronger market presence to help sustain growth well above industry levels in the current financial year.
Gulf Oil's expansion comes as both its manufacturing plants are operating on a three-shift basis. The additional capacity is expected to provide room for future growth while improving operational flexibility.
Gulf Oil Lubricants India currently has a market capitalisation of ₹4,525.59 crore. The company's shares have declined more than 26% over the past year.
The company is also dealing with rising input costs across packaging materials, base oils and additives. Chawla described the increase as unprecedented and said Gulf Oil has implemented price hikes across both business-to-consumer and business-to-business segments to protect margins.
Despite cost pressures, Gulf Oil remains confident about its supply chain position and its ability to serve more than 40 original equipment manufacturer (OEM) partners. The company believes supply security remains a key differentiator for customers and distributors.
The agriculture segment also continues to perform well, supported by both OEM workshop demand and retail sales. Chawla said Gulf Oil is expanding distribution and introducing new products to strengthen its presence in the segment.
Chawla said the company is preparing to participate in the emerging data center liquid-cooling market. Gulf Oil has developed two cooling-fluid products and is currently conducting validation tests with potential customers.
However, Chawla noted that data center cooling remains a small opportunity relative to India's broader lubricants market. Even with widespread adoption of liquid cooling, the segment would account for less than 1% of the country's automotive and industrial lubricants demand over the next few years.
For the full interview, watch the accompanying videoCatch all the latest updates from the stock market here
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