Valvoline Cummins bullish on India, sets up its first lubes unit near Mumbai

May 8, 2013: Valvoline Cummins, a 50:50 JV between Ashland Inc. and Cummins India, has set up its first manufacturing and packaging plant in India with an investment of Rs 146 crore. Located at the Ambernath Industrial Area, near Mumbai, it will produce Valvoline automotive lubricants for the consumer, industrial and heavy-duty markets. The JV, set up in 1998, had so far outsourced manufacturing of the lubricants. Initial production capacity is 120 million litres per annum and this will be hiked to 150 million litres within a year. The current blend lines include simultaneous measuring and blending as well as automated batch blending and oil products produced include engine, gear, hydraulic, industrial and transmission.

Bullish on India
The new investment reflects the company’s bullishness on India. “India is the most important growing piece of our international business right now, although we are growing in many areas around the world,” said Dr Fran Lockwood, senior vice-president, R&D, Ashland Consumer markets. Valvoline Cummins may look at another round of investment to enhance capacity in the existing plant or set up a new one by 2020. “We may reach the peak capacity at the plant in 5-7 years,” Sandeep Kalia, CEO, Valvoline Cummins, told Autocar Professional. According to Kalia, the company will now step up its efforts to tap opportunities in the two-wheeler space. “Because of the huge population, we see the two-wheeler segment as the biggest opportunity, after diesel engine oils. We will look at various avenues to promote our two-wheeler lubricants such as tying up with workshops and upgrading them,” said Kalia. Valvoline Cummins has seen steady growth in India. Its sales volume rose from 4.3 million litres in its first year of operations to 77 million litres in 2012. Built on 10 acres, the new $30 million plant expands the Valvoline brand’s in-house production capabilities. It also enhances the brand’s ability to deliver faster and localised technical services to customers in India, South Asia and other neighbouring countries. “Western India has the largest consumption of industrial lubricants among all regions,” said Sam Mitchell, president of Ashland Consumer Markets, a commercial unit of Ashland Inc. and the producer of Valvoline- branded products. “We will consider exporting from the new plant to markets in neighbouring countries and South East Asia,” he added. In November 2012, Valvoline Cummins opened the Valvoline Lube Station, a new Valvoline lubricant training centre at the Cummins Sales and Service Tech Center in Pune. Cummins engineers and technicians receive training including all aspects of engine lubrication and maintenance. Participants learn why and how Valvoline’s Premium Blue diesel oil is approved, recommended and endorsed by Cummins for commercial fleet vehicles; and learn hands-on with an exhibit hall, models of lubricated engines and interactive kiosks.

SUMANTRA BAROOAH