Savita Oil Technologies ramps up Ester lubricants for electric vehicles

Savita Oil Technologies Ltd. (Savita Oil), a leading Indian supplier of lubricants and petroleum specialties, is sharpening its focus on the automotive and construction equipment sectors with the launch of its new Ester 5 brand of lubricants. 

The company is actively testing its Ester molecule with electric two-wheeler and three-wheeler startups for use as battery coolants. Siddharth Mehra, Executive Director-Business Development at Savita Oil, highlighted the superior performance of Ester 5 lubricants compared to traditional synthetics. In some tests, the new product delivered 28% less engine deposits and 33% lower friction compared to regular Group-III base oil lubricants.

Savita Oil launched synthetic Ester in FY22 and commissioned a dedicated manufacturing plant in Q2FY24. The Mahad facility boasts an expandable capacity of 8,000 metric tonnes per year, with the company targeting production of 4,000 metric tonnes by October 2024, up from 2,000 metric tonnes currently.

Traditionally used in high-cost applications like jet engines and wind turbines due to their biodegradability and higher import prices, ester molecules present an opportunity for Savita Oil. The company's indigenous production allows it to leverage price advantages. The Ester 5 base stock is derived from used edible oils sourced from East Asian countries like Malaysia and Indonesia, along with domestic sources.

"We want to take this new product to the masses," said Gautam Mehra, MD of Savita Oil. The company currently derives 22-25% of its revenue from the automotive segment, with marquee clients like Hero MotoCorp, Mahindra & Mahindra, Tata Motors, and Swaraj. Savita Oil aims to increase its automotive lubricant market share from 2.5% to over 5% in the next 3–4 years.

Beyond B2B sales, Savita Oil markets its popular SAVSOL range of lubricants, greases, and coolants directly to retail customers across passenger cars, two-wheelers, commercial vehicles, and farm equipment segments.

The industrial segment, including construction equipment, contributes 30–35% of Savita Oil's revenue. The company offers a comprehensive portfolio of hydraulic oils, turbine oils, and other industrial lubricants, catering to clients like Tata Hitachi, Sany, and Hyundai Construction Equipment. With India's infrastructure development gaining momentum, Savita Oil's leadership expects this segment to be a key growth driver going forward. Savita Oil reported revenues of Rs 3,653.4 crore and a net profit of Rs 225.7 crore in FY23.