Interview

General Manager | Industrial and OEM for GS Caltex India Pvt. Ltd. ( A 50 : 50 JV between Chevron and GS Holdings South Korea ).

Jayanta Ray

As an integrated oil company, we participate in the full value chain and are able to manage supply chain through our own base oils ‘ Kixx Lubo ‘ imported from our own refinery in South Korea and blend Hi-Performance Lubricants in India.

 

Q. What are the key highlights of GS Caltex India Pvt. Ltd.?

GS Caltex Corporation, founded in 1967, is a 50-50 joint venture of Chevron Corporation, USA and GS Energy, South Korea. GS Caltex, headquartered in Seoul, South Korea, is a leader in the petroleum, lubricant and petrochemical businesses. The Company is a major exporter of petroleum products including lubricants. Through continuous R&D and investments, GS Caltex strives to become a leading global energy company

In November 2007, GS Caltex began base oil production with 16,000BPSD capacity. As of 2010, its production capacity holds 23,000 BPSD; GS Caltex expanded its base oil production capacity to 26,000 BPSD through revamping of its Base Oil Plant in 2011. By using the latest cutting edge hydrocracking technology, GS Caltex aims to be the influential and dominant supplier of high quality base oil in Asia through further expansions and improvements. As an integrated oil company, we participate in the full value chain and are able to manage supply chain through our own base oils ‘ Kixx Lubo ‘ imported from our own refinery in South Korea and blend Hi Performance Lubricants in India.

 

Q. What are your major areas of business; which industry is playing a paramount role in your support?

Both Automotive and Industrial segments are growing in India and witnessed more than 6% growth Year on Year. The automotive Industry is expected to maintain its year on year growth at 8-10 per cent where as manufacturing sector should grow by approximate 5 per cent. India is 3rd largest lubricant market offering exciting opportunities which still attracts more investments from both MNCs and Local players.

The focus and initiatives of current government has shifted the focus to urban development, road connectivity, renewable energy and other agricultural initiatives. Growth in Industry segment is driven by strong investments in Infrastructure and construction. Core sector industry performance has also improved in recent times providing impetus to growth in Mining, Steel, Power and Energy sectors.

GS Caltex focusses on customers of all segments of B2B with a special focus on Infrastructure, Construction sector as well as supporting major Global and Local OEMs in these space.

 

Q. What are the qualities do smart lubricants holds within; what are the challenges you face in recent years; what makes you to overcome those hurdles?

Nearly every business in construction, infra and mining sector is under increasing pressure to lower operating costs and increase efficiency. This often means doing more with fewer people and using equipment for longer duration. This challenge has prompted increased attention to lubrication and its role in equipment reliability and expense. A reliable and smart lubricant has to perform its responsibility to address Total cost of Lubrication as well as offer environmental friendly solutions.

OEMs in every segments are constantly focusing on new technologies aimed at improving fuel economy, minimizing emissions and optimizing the work environment. Lubricant manufacturers complement these need of the OEMs. The combination of performance and avoiding downtime has a major effect on increasing yield and return for the customer. Major role hi performance GS Caltex Kixx branded lubricants play in improving fuel economy and reducing cost of ownership is through providing better protection for equipment.

 

Q. Please share the details of environment friendly features and other major details?

OEMs have been under considerable pressure to offer engines that are more durable, more fuel efficient and produce less emissions than before. New legislative mandates along with exhaust after-treatment system and engine hardware changes are working together to create harsher conditions in which lubricant is operating and has its effects on overall performance of the oil. Part of the solution can be address through Lubricants technology. Thus new service categories like API CK4 and API FA4 are born to meet the goals of emission norms and also to accomplish overall performance. In India API CK4 and API FA4 product categories will arrive by 2020 when India moves to BSIV fuel quality standards. CK4 Fluids have HTHS of 3.5cP or higher and are backwards compatible. But FA4 will have reduced HTHS of 2.9-3.2cP and will have better fuel economy potential but are not backward compatible.

Due to focus and investments towards environmentally sustainable lubricant solutions market is moving towards fully synthetic products ( Group III and PAO based Base Oils ). The increasing popularity of the synthetic lubricants due to the various advantages over conventional lubricants such as excellent thermal stability, wear & tear protection coupled with other properties such as good load carrying capacity and low friction are anticipated to propel industry growth in B2B segment over the next five years. GS Caltex is already ready to address the challenges in market and be preferred solution in Synthetic Lubricants ( PAO based ) category.

 

Q. Bauma Conexpo India 18 is approaching; what plans do you have for the same?

We are participating in BAUMA Conexpo to showcase our world class technology, products and services. All are invited to visit GS Caltex stall at BAUMA in Hall No1 – J 14 to witness the power of ‘ Kixx Lubo’ – Premium Base Oil range from GS Caltex fully state of the art refinery at Yeosu, South Korea.

Also we will show case the power of GS Caltex synthetic lubricants propelling future growth.

 

Q. What is the short term future outlook of the industry?

During the period 2018-2023 Global Lubricants market is expected to grow by 2.18 per cent where as India will grow much faster than Global average @ 4.64 per cent. This reflects the potential growth in economy of India and we can relate same with GDP growth projections between 6 to 7 per cent in next few years. Our major plan is to grow profitable volumes and provide sustainable solutions to our customers in our chosen sector and become a preferred player in the Industry. Apart from volumes, we are also growing quarter on quarter in terms of our recruitments, portfolio and distribution. We see a very encouraging scenario for GS Caltex in India in next 3 to 5 years.

 

Q. Lubricants is one of the most crowded and competitive segment. How has GS Caltex been able to create a USP for itself?

We agree that Lubricants space is crowded and competitive and any company needs to offer its USP to stay strong in its offer for Global and Indian market.

GS Caltex Group II/III base oil has excellent low temperature properties and exceptionally bright white clear transparent qualities. The Group II/III base oil produced by GS Caltex is environment-friendly with low volatility, reducing oil consumption and improving fuel economy. And GS Caltex offers high thermal and oxidation stability to support drain interval extension. All these advantages are the result from the latest cutting edge hydrocracking technology

As an integrated oil company, we participate in the full value chain and are able to manage this risk through our own base oils ‘ Kixx Lubo ‘ imported from our own refinery in South Korea.The key is to continue innovating customer centric product and services to reduce the impact of volatility and build a positive perception in the market place to be successful in Indian Market

 

Q. Describe your national and international presence?

GS Caltex Corporation is a Fortune 500 Fully Integrated Oil Company and JV between Chevron USA and GS Holdings South Korea. It’s most modern refining capacity is located at Yeosu Complex of South Korea with a refining capacity of 790,000Barrels/day. The other facilities includes De-sulphurisation facilities ( 274,000 Barrels/Day ), Heavy Oil Upgrading facilities like HCR, VR-HCR, Hydro-Cracker, Base Oil Plant and VGO FCC. The Petro chemical Unit consists of the world’s largest Aromatics Plant (2.8Million Tons/Year ) and A High Quality Poly-propylene Plant.

GS Caltex is the most competitive energy company in Korea who persistently strives to become a leader in the global energy industry. Powered by the state-of-the-art technology and the success of our core businesses including petroleum, petrochemical, base oil and lubricants, GS Caltex currently exports petroleum and other petroleum-based products to 20 nations worldwide.

Research and Development is the core strength of GS Caltex in developing product competitiveness for lubricants and polymers. GSC R&D facility is located at Daejon near Seoul in South Korea which has developed many award winning lubricants to forge partnerships with major OEMs and Key Accounts.

GS Caltex India Pvt Ltd is a 100% subsidiary of GS Caltex Corporation operating since 2010 based out of Mumbai and with manufacturing facility near Panvel with highest quality accreditations like QS 9000 and ISO 14001. With focus in technology and service, in last 5 years GS Caltex has got the patronage of major Global and Local OEMs to become the fastest growing Lubricants MNC in India.