Apar
Industries and Chematek SpA of Italy have formed a joint venture to market
and distribute the Agip brand of premium automotive lubes in India for a
range of modern automobiles including two wheelers. Other than 4-stroke
premium grade automotive lubes, the 50:50 joint venture called as
Apar-Chematek will also address industrial and marine segments in India. The
Agip brand is owned by ENI of Italy and Apar Industries has entered a
technology and licensee agreement with ENI, which has the largest range of
premium two-wheeler lube range in Europe, to blend the lubricants at Apar's
state-of-the-art plant at Rabale in Navi Mumbai.
Speaking on the occasion, Kushal Desai, managing director, Apar Industries,
said, "The entry of high-end Agip oils into the Indian market means
improved auto performance, superior engine protection with due consideration
to lower emissions and pollution standards at affordable prices."
Adding that Apar and ENI will blend the products in India, Desai expressed
that Agip-Chematek would be stressing on a strong distribution
network.
An estimated 200 distributors have been appointed and the company is aiming
at Rs 500 crores target in the first year. The company, which is expecting
to gather a 3 to 4 per cent automotive market in 3 to 4 years, is in
advanced discussions with auto manufacturers and is expecting an
announcement from a large auto manufacturer approving Agip brand of oils for
its products. Out of the various markets the company is aiming at, the
automotive lubes market is expected to amount to 70 per cent of the
business. "ENI is a large integrated company. It is the 9th largest
global major and Chematek has facilitated the bringing of the range of Agip
products to India. Chematek has been close to ENI and will help expand the
product range to other than auto markets," Desai added. Stressing on
the fact that Agip is approved by global auto makers like Volkswagen,
Daimler, BMW, Piaggio, Aprilia, Maserati, Porsche, Peugoet, Rolls Royce,
Renault, Ford, Wartsila, MAN, Volvo and others, Desai remarked that the auto
lube market is 900,000 metric tonnes." The Agip brand will be
positioned between the existing lube brands in the Indian market and Castrol
according to Desai.
Apar-Chematek is a marketing venture with an investment of Rs 10 crores.
This is complemented by Rs 15 crores of investment towards significant
upgradation of the Rabale facility to meet ENI standards. The Rabale
facility, according to Desai, has a 200,000 kilo-litre capacity. Asked about
the nature of co-ordination between ENI and Apar Industries on the technical
front, Desai stated: "We at Apar are closely working with ENI to
localise the lubricants to suit the Indian conditions. In India engines and
transmissions have to withstand higher stress due to stop-go traffic
conditions in addition to various other factors and therefore need higher
protection."
Apar Industries is a market leader in specialty oils and the largest user of
base oils in India. An ISO 9001: 2000 and ISO 14001:2000 company Apar
Industries is aiming at a Rs 700 revenue target and operates in diverse
fields like electrical, metallurgical and chemical engineering. While Agip
will add to Apar's portfolio, ENI of Italy operates in oil and gas sector,
power generation and sale, oil field services, construction and engineering
industries. It is one of the only oil companies that manufacture the active
chemical ingredients that are the building blocks for lubricant
additives.
With a presence in 68 countries the ENI group offers 650 plus variants of
lubes to its end consumers. Chematek SpA is an international chemical
company that operates in Europe, South America and Asia. A leading name in
global fine chemicals distribution sectors, Chematek has been operating in
the performance chemicals and specialty chemicals areas focused on the
petroleum and petrochemicals industry. Chematek is a recognised and
registered vendor to all the refineries.
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