Lubricants play an important role in reducing friction between moving parts in the engine. A typical internal combustion engine (ICE) has many moving parts, and if the lubricating oil content is low or loses its viscosity, it will cause permanent damage. This has led to continuous innovation by lubricant manufacturers

However, as automakers promote electric vehicles (EV), the number of moving parts in cars has decreased, and the types of lubricants required have also changed. Although some components of ICE still exist, other components have changed a lot. To learn more, we interviewed Sandeep Sangwan, Managing Director of Castrol India Ltd. 

Electric cars don’t need oil. How do oil and lubrication play a role in electric cars?

Although electric vehicles do not require lubricants in the form of engine oil, they require EV fluids in the form of transmission fluid, grease, and coolant. Several global automakers use Castrol’s EV oil as part of their EV factory filling. In India, Castrol is currently the only electric vehicle fluid supplier for Tata Motors and MG Motors. As a leader in the Indian lubricant market, in addition to the four-wheeler/car category, we are discussing with two-wheel electric vehicle (EV) manufacturers the options for developing EV lubricants. 

What lubrication products does Castrol currently provide for electric vehicles?

Castrol provides "Castrol On", which is the EV Fluid brand launched by Castrol for electric vehicles. It includes electronic transmission fluid, electronic coolant and electronic grease, which helps to enhance the thermal management of the powertrain and battery of electric vehicles , So as to achieve ultra-fast charging, helping electric vehicles go farther on a single charge, thereby improving efficiency.

What measures has the oil industry, especially Castrol, taken to reduce its carbon footprint?  

In June 2020, BP announced its reshaping strategy and shared its goal of transforming from an international oil company to an integrated energy company. As part of its strategy, bp has set itself an ambitious goal of achieving net zero by 2050 or earlier. In March 2021, Castrol announced its global 360º strategy to help achieve a more sustainable future. The strategy sets goals to reduce waste, reduce the carbon footprint in production and operations, and improve lives by 2030. 

Castrol India conducted an energy audit to determine energy reduction opportunities, including switching to renewable energy and solar solutions to power its factory operations and supply chain options. 

At Castrol plants across India, we successfully commercialized a new hybrid process for selected product variants. This will enable us to reduce overall energy consumption and reduce carbon emissions in accordance with our global 360º sustainable development goals.

In order to reduce the consumption of plastic in our packaging, our Indian and global teams are working together to change the shape, size and appearance of our lubricant packaging. The new packaging has been optimized to be stronger, lighter and easier to transport. Overall, we have been able to reduce plastic consumption by up to 20% and reduce our environmental footprint. 

At the raw material level, we are seeking to reduce the carbon intensity of Castrol products by purchasing base oils from suppliers whose carbon content is reduced.  

What are Castrol's future expansion plans?

Our top priority is to drive profitable growth through the personal mobile sector. We continue to invest heavily in our major brands through product innovation and how we communicate our product USP to consumers. 

In addition to providing high-quality Castrol products in retail or Bazaar trade, we have also expanded the coverage of independent auto repair shops to provide services to consumers and customers in this market segment. At the same time, we are cooperating with ki Mobility Solutions to exclusively supply Castrol lubricants to its multi-brand workshops. 

Jio-bp is a joint venture between bp and Reliance Industries. We have signed a supply agreement with Jio-bp, which also provides Castrol with opportunities to provide high-quality products at fuel farms across India. In October 2021, we opened India's first Jio-bp fuel field near Navi Mumbai, redefining convenience and mobility. This partnership brings together our (Reliance and bp) best offers and represents many firsts for Indian customers-including the launch of Wild Bean Café and the new Castrol quick oil change service, which pioneered consumer Provide the concept of quick oil change. This will greatly help to provide our customers with convenient and reliable service and brand experience.

How has Castrol done for the past year and a half (during the pandemic and lockdown), and how has the company solved this problem?

In March 2020, the pandemic suddenly stopped mobility and transportation around the world, which had a huge impact on demand. At Castrol, we resumed manufacturing at the earliest after taking the greatest health and safety precautions for our employees, our suppliers, distributors and our communities. Safety has always been at the core of Castrol's operations, which means that employees strictly abide by safety agreements to ensure business continuity and smooth supply chain operations.

Our revenue fell sharply in the second quarter of 2020 (we reported the fiscal year from January to December), but we rebounded in the next few quarters. In the third quarter of 2021, Castrol India Limited reported strong financial performance and resilient business growth, maintaining the momentum of the first two quarters of 2021. We also achieved strong revenue and profit growth for the nine months ended September 30, 2021 compared to 2020. 

Compared with the third quarter of 2020, our net sales in the third quarter of 2021 increased by 22%. Due to the sharp rise in input costs, the cost of sales is still very challenging. We respond through timely pricing interventions and continuous investment in brand advertising and marketing expenditures to support delivering value to customers and strengthening brand awareness. These measures help us navigate the dynamic market situation.

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