Creating a niche in accessible market [Dec 2011]

December 22, 2011 9:53 am

“We just do not dump oil on the customers, but offer complete solutions”, said Sandeep Singla, AVP – Marketing & Business Development, Valvoline Cummins
Valvoline Cummins is a global player in the lubricants market. With a huge presence in terms of supplying solutions to customers, the company is particularly strong on the OEM front even higher than the parent company. Valvoline Cummins Ltd is a joint venture of Valvoline Inc.USA and Cummins India Ltd.
In India, the company has a market share of 8.5 per cent in the lubricants market. This is part of the accessible market. Valvoline Cummins does not operate on certain markets like fuel pumps, those are the inaccessible market. Business with such markets is possible only with some alliances with various suppliers and supply to the mother OEMs and retail outlets.      
“There are certain markets which are operating with certain value. They are in the business of selling lubricants from an oil stock. Valvoline Cummins does not want to be part of the market where the rates are very low; therefore it becomes too difficult to compete. We want to compete with likeminded companies. We just do not dump oil on the customers, but offer complete solutions”, said Sandeep Singla, AVP – Marketing & Business Development, Valvoline Cummins Limited.
“As of now we are concentrating on the retail market or accessible market. We are getting into alliances with OEMs”, Mr. Singla informed.     
“Valvoline Cummins is a 140 year old company and in India it is the most updated oil company to provide solutions at very reasonable rates. With a strong technical team in US and India, the company is technically ready to develop the Indian market”, Mr. Singla outlines. Valvoline Cummins has a branded program wherein it conducts lubricant analysis which involves taking samples of lubricants, checking it and getting back to the clients. The Rs. 1000 crore company is looking at a growth of around 10 per cent year-on-year. 
Lubricants can be segregated into 2 segments on highway and off highway. On highway generally comprises of engine oils etc. whereas in the off highway there are several divisions and the most significant for Valvoline Cummins is construction & mining. “That is the biggest segment we are currently focusing on. There are customers who are willing to work with us in that segment and we work with them”, Mr. Singla said.   
“Excon is an excellent meeting ground for people who are involved in the construction mining and construction business. This is the right place of meeting the right people at the right time”, said Mr. Singla.