Branding Engine Oils

Castrol India Ltd (CIL) is the second-largest player in the Indian lubrication industry. From just 6 per cent market share in 1993, the company now commands approximately 20 per cent of the lubrication market. It was the first to advertise and promote engine oils. CIL’s innovative and attention-grabbing advertisements have over the years strengthened its brand image. Its business can be classified into three categories — automotive, industrial, and marine. History CIL commenced operation in India in 1919 as a trading unit of C C Wakefield. In 1983 it went public, with 60 per cent of its equity being held by retail investors. In 1994 Burmah Castrol increased its shareholding in the company to 51 per cent. Following the takeover of Burmah Castrol by BP in 2000, the latter took control of the company with 71 per cent shareholding. After the amalgamation of Tata BP Lubricants India Limited with CIL in May 2003, BP now holds 71.3 per cent stake in the company. Industry dynamics The Indian lubricant industry is around Rs 17,000 crore in size and is growing at approximately 5 per cent per annum. It is the fifth-largest lubricant market in the world. The top four players — Indian Oil Corporation Limited (IOCL), CIL, Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) — control 70 per cent of the market. The rest is shared by both regional and global players. CIL commands approximately 20 per cent market share, which it has gained at the expense of the market leader, Servo of IOCL (which has 40 per cent share). Sources of moat Brand. The credit for transfor