Gulf Oil Lubricants Eyes Rs 700-Crore Revenue From EV Business In Next Five Years

Gulf Oil Lubricants India Ltd. is targeting a Rs 500 crore to Rs 700 crore revenue from its electric vehicle charging business over the next four to five years, according to Manish Gangwal, chief financial officer of the company.

The fast chargers segment in the EV space has an opportunity to grow into a billion dollar-plus industry by 2030, he told NDTV Profit. “We aim to have at least 10% market share. So, we are looking at roughly Rs 500–700 crore of topline, at least coming in the next four-five years from this chargers segment,” he said.

Though the Hinduja Group firm is expanding its core lubricant business, it has also forayed into EV space with investments in charging infrastructure in recent years. The company already offers EV fluids.

Gangwal talked about the company’s most recent investment in Tirex, a company that makes DC fast chargers. 

“The DC fast chargers segment in India is going to grow rapidly. This is because there will be government buses which are going to be converted to EV in certain proportions over the next five-seven years and they all require fast charging,” the top executive said.

This is where Tirex will play a significant role for Gulf Oil Lubricants, according to Gangwal.

“Tirex already has more than 1,000 fast chargers installed and running all across India. All the products are highly successful and that is why we believe that Tirex has an opportunity in the DC fast chargers segment, which will be very significant for us,” he said.

The company acquired a controlling stake in EV charger manufacturer Tirex Transmission in November 2023, with an investment of Rs 103 crore. The move was aimed at bolstering the presence of the automotive and non-automotive lubricants producer in the EV segment. 

It also made an investment in 2021 in a UK-based company named Indra Renewables. It increased its stake in the firm in 2023 during the process of a Series B fundraising to become the biggest investor. 

The automotive lubricants manufacturer has also made an investment in a software-as-a-service company, which caters to electric vehicles, ElectreeFi. 

The company is keeping a track of EV value chain across categories, and regularly evaluating the opportunities coming through partnerships or acquisition, the CFO said.

“The cash in our core lubricant sector is planned to be used for the upcoming EV segment or for dividend payouts. We are closely evaluating the battery swapping space in EV or other EV value chain opportunities because we have a strong brand that the auto consumer knows,” Gangwal said.