We Aim to Double the Turnover of EV Subsidiary in Next few Years: CFO, Gulf Oil Lubricants India

The EV segment is becoming a strong pillar in Gulf Oil Lubricants’ growth journey. Manish Gangwal, CFO, Gulf Oil Lubricants India, outlines plans for EV business and highlights where they see possible M&As. He mentions that the company would avoid ventures that require high cash burn, instead, prefer partnerships or collaboration, keeping capital efficiency in mind.

In an interview with FE CFO, Manish Kumar Gangwal, CFO & President-Strategic Sourcing, IT & Legal of Gulf Oil Lubricants India, presents the company’s expansion plan in the EV ecosystem, while focusing on volume and profitability in the lubricants business.

In October 2023, the Hinduja Group company acquired Tirex Transmission, a manufacturer of DC fast chargers based in Ahmedabad. The company grew 300 percent from a turnover of Rs 12 crore in FY23 to Rs 80 crore in FY25. “We now aim to grow this into a Rs 400–500 crore business over the next 4–5 years,” said Gangwal.

Here are the edited excerpts.

Despite the rising wave of EV adoption, you are still bullish on lubricants. What gives you this confidence?

At Gulf Oil Lubricants, we have consistently outpaced the market in the industrial lubricant industry. The overall lubricant market typically grows at a volume rate of around 3%-4%. We have achieved nearly 9%-10% CAGR over the past 14–15 years, which is two to three times faster than the market.

We see continued headroom for growth because India remains under-penetrated in vehicle ownership.

We don’t foresee any slowdown in the lubricant market over the next 10–20 years. On the contrary, we expect sustained growth of around four percent annually as per global research agencies. They see the Indian lubricant market as being at a ‘sweet spot’, with expected growth of two to three percent in the short term and three to four percent over the next few years. We are confident to outperform that average.

On the diesel engine oil side—or the commercial diesel (CD) segment—also we are seeing sustained traction. This is because the demand from manufacturing and infrastructure growth needs to be serviced, and lubricants are essential to that ecosystem. So, we expect to grow faster than the industry average. 

That’s why we are proactively expanding our production capacity. We will be expanding our Silvassa plant currently running at about 95% capacity utilization. We have already acquired additional land to support future capacity and are focused on long-term risk mitigation and future-proofing our business.

 You have made multiple investments in the EV ecosystem, deployed around Rs 150 crore so far. What is the growth outlook of this segment?

 EVs opened up an entirely new value chain. We have made strategic investments and are actively evaluating more opportunities. We are a strong cash-generating company. Last year alone, we generated over Rs 425 crore in operating cash, and we closed the year with more than Rs 1,000 crore in cash on the balance sheet.

Our capital allocation strategy is designed to balance between reinforcing our core lubricant business and building future-ready capabilities in EV and adjacent areas. 

We are actively working on premium product migration to improve margins while continuing to grow volumes. 

We identified synergies in our strengths—brand recognition, an 80,000+ strong retail network, our branded garages, and deep OEM relationships. That led us to invest in EV chargers. 

We are constantly evaluating additional opportunities in EV infrastructure. We are building this portfolio with a strategic, long-term view. Our aim is to create a larger, diversified EV play—not just from Tirex but through other synergistic businesses too.

With all these opportunities, we are optimistic about the EV segment becoming a strong and meaningful pillar in our growth journey. 

We also acquired ElectreeFi (EV charging‑management SaaS provider), which develops charger management software, and we have invested in UK-based Indra Technologies, a maker of AC home chargers that we plan to bring to the Indian market—possibly even manufacturing them here. 

What are your EV expansion plans?

While we have maintained a healthy payout ratio—around 55%to 65% of profits—we have consciously built a war chest to fund future growth. Our approach is to look for smart, scalable M&A opportunities, not just in EVs, but also within lubricants.

That said, our broader philosophy remains cautious. We avoid ventures that require high cash burn. Instead, we prefer to enter areas where we can partner or collaborate, keeping capital efficiency in mind.

What other areas are being explored in the EV segment for M&As?

As I mentioned, charger manufacturing is one area we are exploring.  There are several other promising opportunities such as battery swapping and E-mobility. If battery swapping becomes a mainstream method of recharging EVs, it could open up an entirely new business model.

There’s a growing need for strong linkages between EV OEMs and end-users, and whoever can bridge that gap will play a crucial role in the ecosystem.

We are evaluating every part of the EV battery value chain to assess where we could participate. For instance, if our OEM partners are building charging networks to support their EV buyers, we are considering whether we can be a Charge Point Operator (CPO) or a facilitator in that value chain.

You're also handling strategic sourcing, legal, and IT. What takes up most of your time as CFO?

While treasury operations are largely automated now, my time is mostly spent on three key areas: Business performance and margin improvement discussions; Evaluating new ventures and M&A opportunities; and Risk management—especially around forex and commodity exposure

My role includes identifying strategic areas for expansion and providing data-driven insights through the integration of digitization and real-time dashboards.

From geopolitical risks to commodity price fluctuations, every day brings a new variable. In such an environment, risk management becomes a core part of the CFO's job.

I spend significant time developing frameworks to assess and mitigate different types of risks—geographical, segment-specific, business, and particularly commodity and forex-related risks.

Since many of our input costs are linked to crude oil, we constantly monitor price movements and take hedging actions when needed. 

What digital initiatives are you pursuing to support this growth path?

Over the past four years, we have more than doubled our IT and digital investments. Our B2B business runs entirely on Salesforce, and we have built extensive data lakes  (centralised repository to store raw, unprocessed data from various sources) to power real-time dashboards. We are on SAP, and we have added CRM solutions to strengthen B2C engagement.

All this is part of our “Unlock 2.0” strategy, which focuses on reimagining processes, enhancing efficiency, and preparing for scalable growth. Our finance team is trained to interpret data, support decision-making, and lead in a digitally transformed environment.