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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
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