Report
Swarnendu Bhushan
EUR 120.00 For Business Accounts Only

MOSL: GP PETROLEUM (Not Rated)-Association with Repsol — a big advantage

GP Petroleum: Association with Repsol —  a big advantage

(GPPE IN, Mkt Cap USD40m, CMP INR58, Not Rated)

 

For the last several years, the alliance of Repsol and Honda has always come out tops at the Motorcycle Grand Prix, irrespective of the rider, with two decades of the successful partnership testing the most demanding riding conditions. After GP Petroleum (GPPL) entered into an alliance with Repsol in 2016, the company is hoping to ride on to victory in the Indian lubricants segment.

 

From Sah Petroleum to GP Petroleum

  • Sah Petroleum, primarily an industrial lubricant company was bought over in 2014 by the Dubai-based Gulf Petrochem, with interests in physical trading of commodities (annual turnover of ~USD3b). Consequently, Sah Petroleum was renamed GP Petroleum (GPPL).
  • GPPL’s Current CEO, Mr. Hari Prakash, who came on board in Dec’15 has over 16 years of experience at Castrol, where he handled operations in China, India and South East Asia. To ensure future growth, GP Petroleum has been hiring professionals from leading companies like Shell, Total, Castrol, HPCL, Valvoline, etc.

 

Current operations

  • GPPL has two plants; one in Vasai (Mumbai) and another in Daman. The plant’s production capacity is 80,000KL/year with a single shift. The Vasai plant has a significant base oil storage capacity of 15,000KL, which helps in supply consistency.
  • The company is largely an industrial lubricant player. It has been focusing on the automotive segment with its own brand — IPOL; it also manufactures and markets Spanish company — Repsol’s lubricants in India.
  • Besides, GPPL owns a ten-acre plot at Saronda, Gujarat, making it future-ready for capacity expansions.
Underlying
GP Petroleums

GP Petroleums Limited is engaged in the production of lubricating oils, greases, and rubber process oils and other products from crude oils. The Company's segments are Lubricants and Trading. The Company markets its products under the IPOL brand name. The Company's products include automotive lubricants, such as automotive engine oils, automotive gear and transmission oils, greases and specialties, two wheelers, cars and diesel engine oils; industrial lubricants, such as industrial oils, industrial greases, metal working products and industrial specialty oils; process oils, such as rubber process oils and secondary plasticizers; transformer oils, and white oils, such as liquid paraffin. Its products cater to a range of industries, including general engineering, automotive, plastics, sugar mills, transformers, rubber, paint, cosmetics, tire, textiles, cement and adhesives. Its manufacturing facilities are located in Vasai and Daman, with a production capacity of 80,000 kiloliters.

Provider
Motilal Oswal
Motilal Oswal

​Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance. 

Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.

Analysts
Swarnendu Bhushan

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