Malaysia’s state-owned oil giant Petronas plans to expand its base in India. Petronas Lubricant International will invest US$150mn to set up a plant in Mumbai, and establish a technology centre for motorcycle engine oil. The company’s key focus is to globally rank in the top five in next five years.
Being a manufacturing and marketing arm of the Malaysian national oil corporation, the company will also invest its branding activity in India. With India being the sixth largest lubricant market globally, Giuseppe D’Arrigo, group CEO at Petronas Lubricant International on Economic Times said, “India can be a key engine for growth in future for Petronas.”
The company currently sells about 30mn litres a year in India, which constitutes three percent of its global volume. According to D’Arrigo, Petronas Lubricant has clapped eyes on 1.5bn to 1.7bn litres globally by 2021.
Facing the future, Petronas is set on value selling and will be open to inorganic opportunities. However, the report reads “the immediate focus is on operationalising the new factory, which is expected to go on stream in the first quarter of 2018, and getting the brand’s ‘route to market’ right.” The company may use its FMCG technique to run its marketing and branding strategies. Petronas’ plant in India is said to mature in next three to four years.