Soujanya Castrol 1PB11MBA31

7/30/2019 Soujanya Castrol 1PB11MBA31

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By

Soujanya.N

1PB11MBA31


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HISTORY

On 19th march 1899, Charles Cheers

Wakefield founded the company CC

Wakefield & Co Ltd . He first produced the

Wakefield Lubricator , an automotive

lubricant.

In1909 CC Wakefield & Co Ltd started to

produce their first Castrol product. It was

mixed with Castor oil and a measure of

vegetable oil. Hence called Castrol


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In 1966 Castrol was acquired by Burma.

In July 2000 Castrol was purchased by BP Plc.

Castrol India Ltd was founded in 1910.

Second largest manufacturer of automotive and industrial

lubricants

It is a part of BP group.

Owns around 22% market share in the overall Indian

lubricant market.

5 manufacturing plants across the country.

It has 270 distributors and 70,000 retail outlets.


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Vision Statement

From People and Business to products and services,

Castrol makes it work better.

Mission Statement We will, sustainably, enhance the profitability of our

customers by developing innovative products and services

offers. As a result, we will become the manufacturing

partner of choice within the Equipment Manufacturing

and Industrial Maintenance market spaces


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Share holding pattern

Face Value: 10.00

Currents Market Price:

BSE: 326.95

NSE: 327.20

Traded as :

BSE: 500870

NSE: CASTROL

Revenue : 2354.30 crores

Company URL : www.castrol.com


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About the Industry

The Indian automotive lubricant market is the sixth largest

market in the world.

Indian

lubricant industry

Automotive

Marine & Energyapplications

Industrial

Key Success Factors:

Brand Image

Distribution channels

Price and Promotion

Margin and Discount Schemes


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Market Share of Lubricant Industry in INDIA:

Contribute to approximately 50% of the market share.

Has a high potential due to the increasing number of

vehicles on the road.

45%

17%

22%

8%

3% 3%

IOCL

HPCL

Castrol

BPCL

Gulf Oil

Tide Water Oil


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Michael porters 5 forces

Competitiverivalry

within theindustry

[LOW]

Threat of

newEntrants[HIGH]

Bargainingpower of

Customers

[LOW]

Threat ofSubstitutes

[HIGH]

Bargainingpower ofSuppliers

[HIGH]


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Weakness

Weak in Industrial Products.

Expensive Products.

Strength

Owns around 22% market

share in Indian Lubricant

industry

Strong Brand Image.

Strong R&D.

Strong supply chain.

Opportunity

Growth in industrial production

Growth in personal mobility.

Overall Economic activity.

Changes in Engine Technology.

Threats

Steep rise in prices of raw

materials and fuel prices.

Input costs.

Competitive activity


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Financial Aspects


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Liquidity Ratios

YEAR 2011 2010 2009 2008 2007

Debt/Equity Ratio 0.00 0.00 0.00 0.01 0.01

Current Ratio 1.50 1.48 1.55 1.58 1.59

Turnover Ratios

Inventory

Turnover Ratio12.94 14.16 11.59 10.52 9.56

Fixed Assets

Turnover Ratio11.72 11.13 10.11 10.07 9.26

Debtors Turnover

Ratio 17.76 18.91 17.08 16.69 13.63

Interest Coverage

Ratios375.84 305.83 169.30 113.90 90.63

Profitability Ratios

Operating Profit

Margin21.06 23.84 22.17 17.05 15.87

PAT/Total Income 13.21 15.00 13.75 9.93 9.41

NPM (Net Profit

Margin)13.63 15.29 13.82 10.13 9.51

Return on Capital

Employed124.01 141.17 120.02 91.24 80.49

Return onNetworth 83.10 93.53 78.52 57.93 51.53


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Range of products

Chain oil

Greases

Spindle oil

Gear oil

Slide way lubricants

Hydraulic oil

Circulating oil

Compressor oil


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Competitors

Royal Dutch Shell

Bharat Petroleum

HP Indian Oil


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Strong Brands


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Reaching out


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Enduring Relationships


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Branding and Advertisements


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Force for good


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Castrol and Sports

Cricket

FIFA world Cup

EURO 2012

Car Racing


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Castrol India is a zero debt company and has a

high dividend paying track record.

Premium product mix and a formidable brand

bode well for the prospectus of Castrol India,

making it the leading player in the Lubricant

market in the country.

It enjoys more than 20% of market share from

which it derives 85% of its sale and profits.

Conclusion


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Thank You

Documents

Soujanya Castrol 1PB11MBA31