Gulf Oil Lubricants India Ltd is setting ambitious revenue goals for its electric vehicle (EV) charging business, targeting an income of Rs 500 crore to Rs 700 crore over the next four to five years. This strategic move aligns with the company’s vision of capturing a significant share of the burgeoning EV sector.
According to Manish Gangwal, the CFO of Gulf Oil Lubricants, the company is aiming to secure at least a 10% market share in the rapidly expanding fast charger segment. This segment is expected to evolve into a billion-dollar industry by 2030. Despite its ongoing expansion in the core lubricant sector, Gulf Oil Lubricants has ventured into the EV market by investing in charging infrastructure in recent years.
The company has also been proactive in offering specialized EV fluids. Gangwal highlighted the company’s latest investment in Tirex, a prominent manufacturer of DC fast chargers. This strategic investment is poised to bolster Gulf Oil Lubricants’ position in the EV charging domain.
Gangwal emphasized the substantial growth potential within the DC fast charger segment in India, driven by anticipated government initiatives to convert a significant number of buses to electric power over the next five to seven years. This transition is expected to create a heightened demand for fast-charging solutions.
Tirex, with its extensive portfolio of over 1,000 operational fast chargers across India, is well-positioned to meet this growing demand. Gangwal expressed confidence in Tirex’s potential to play a pivotal role in this sector, given the company’s proven success and the increasing need for efficient fast-charging infrastructure.
In November 2023, Gulf Oil Lubricants acquired a controlling interest in Tirex Transmission, investing Rs 103 crore to enhance its presence in the EV sector. This acquisition reflects the company’s commitment to strengthening its foothold in the EV market. Additionally, Gulf Oil Lubricants has expanded its investment portfolio to include Indra Renewables, a UK-based firm specializing in renewable energy.
The company increased its stake in Indra Renewables during a Series B fundraising round in 2023, making it the largest investor in the firm. Further diversifying its investments, Gulf Oil Lubricants has also put money into ElectreeFi, a software-as-a-service company that serves the electric vehicle industry. This investment aligns with the company’s strategy to monitor and engage with various aspects of the EV value chain.
Gangwal noted that the company is actively exploring opportunities through partnerships and acquisitions in the EV sector, including potential ventures into battery swapping technologies. The CFO also mentioned that the funds generated from Gulf Oil Lubricants’ core lubricant business are planned for reinvestment into the EV sector or for dividend distributions.
The company remains vigilant in evaluating new opportunities within the EV value chain, leveraging its strong brand reputation to capitalize on emerging trends and technologies. Gulf Oil Lubricants India Ltd, part of the Hinduja Group, is a leading manufacturer of automotive and industrial lubricants. With a strong presence in the lubricant industry, the company is expanding into the electric vehicle sector, focusing on EV charging infrastructure and related technologies.
