Company Analysis by Samir Shah

Economic :Political :1. Interdependence between

1. Government Controlling
world economy and oil industry
world hydrocarbon reserves
2. Growing demand for oil but
Significant Impact
supply of oil at reasonable
2. OPEC
controlling 75% of oil price is a concern
reserves Highly Influential
3. US Economy Highly
3. Risk Instability, strikes, civil influential
conflicts Adverse Effect
Oil & 4.
Gas
Exchange Rate Impact on
4. Environmental laws, treaties
buyer and supplier

Oil Distribution
and Marketing Technological :-

Social :1. Values and beliefs shape

preference for energies
energy mix changing towards
greener energies
2. Need for companies to show
social responsibility
supporting sustainable human
development

1. Extremely Technology-driven
2. Improved upstream
technologies e.g. recovery of
hydrocarbon, oil
3. Considered exhausted -->
higher profitability

Its More than Oil, Its Liquid

Engineering

PEST Analysis of the

Industry

 CASTROL India Ltd is the leading automotive and industrial lubricant

manufacturing company in India, providing technically superior synthetic,
part synthetic and conventional engine oil and specially lubricants for card,
motorcycle, truck and tractor.
Parent company Castrol was founded by Charles Wakefield in 1899 under
the name of C.C. Wakefield & Company.
C.C. Wakefield & Company entered in India in 1910 setting up a its first
overseas branch in Mumbai which is now head-quarter of Castrol India Ltd.
Pioneer in the sponsorship marketing technique.
Name changed to Castrol in 1944.
In 1966 Burmah Oil Company bought Castrol; Burmah-Castrol was later
purchased by BP Group in 2000.
the Indian Marketing and Business of Castrol was amalgamated with Indrol
Lubricants & Specialities Ltd.
In 1983, with Indrol Lubricants & Specialities Ltd (Castrol India) went public
with 9 Lakh equity shares issued at a premium of 9 rs. per share.
In 1990, the name of the company was changed from Indrol Lubricants &
Specialities Ltd. to Castrol India Ltd.
In 1995, Castrol Oil was first in the lubricant sector to obtain ISO 9002
certification.
In 1998, Castrol India bags QS 9000 certification Castrol India has become
the first lubricant company in Asia-Pacific to get QS 9000 certification (the
most rigorous quality system standard for suppliers to the automotive
industry worldwide).

Its More than Oil, Its Liquid

Engineering

Company Information

Cars
Engine
Oils
Automati
c
Transmiss
ion Fluids
Special
Oil for
Tata and
Maruti
cars

Motorcy
cle
Engine
Oils

Truck and
Bus

Off
Road

Engine
Oils

Driveline
Fluids

Antifreez
e and
Coolant

Greases

Automati
c
Transmiss
ion Fluids
Manual
Transmiss
ion Fluids

Its More than Oil, Its Liquid

Engineering

Business Divisions &

Products

Shareholding Pattern
90

Promoter &
Promoter Group Foreign
Promoter &
Promoter Group Indian
Public - Institutions
Public Government Stake
Public - Non
Institutions
Non Promoter - Non
Public

80
70
60
50
40
30
20
10
0

42248

42339

42430

42522

Its More than Oil, Its Liquid

Engineering

100

Net Profit
( quarterl
y)

206.9
184.5
( Jun16 ( Mar16
)
)

Net Profit
( Yearly)

615.26
( Dec1
5)

474.56
( Dec14
)

Current
Asset
( Yearly )

1333.2
1
( Dec1
5)

1157.26
( Dec14
)

Non
Current
Asset
( Yearly )

328.41
( Dec1
5)

334.58
( Dec14
)

Current
Liability
( Yearly )

1071.0
7
( Dec1
5)

981.39
( Dec14
)

Financial Performance
Last 5 Years Sales

CAGR = 1.99 %

2011
2012
2013
2014
2015
3000 3250 3500 3750 4000

Rs in Cr

Ratios

June
2016

Non
14.94
13.67
Current
( Dec1 ( Dec14
)
) Curren
GrossLiability
Price 5Debt
)
Profit ( Yearly
Earnin
Equity t

g
Sharehol
0.42 ders
32.95
Fund
( Yearly )

575.61
( Dec1
2.82
5)

496.78
( Dec14
1.31
)

Business Strategies

(1) Contemporary, differentiated and competitive customer service

(2) Premium quality a source of enhanced customer experience
(3) Supply chain capabilities assets & resources to support growth
(4) Consistent processes
(5) Generating value for business through efficiency initiatives. Health,
Safety, Security and Environment

Sponsorship :

(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)

CASTROL
CASTROL
CASTROL
CASTROL
CASTROL
CASTROL
CASTROL
CASTROL

AND
AND
AND
AND
AND
AND
AND
AND

VOLKSWAGEN WORLD RALLY CHAMPIONSHIP

FORD - WORLD ENDURANCE CHAMPIONSHIP & IMSA
AUDI SPORT WORLD ENDURANCE CHAMPIONSHIP
AUDI SPORT DTM
HONDA WORLD TOURING CARS
M-SPORT (FORD) WORLD RALLY CHAMPIONSHIP
SKODA EUROPEAN RALLY CHAMPIONSHIP & WRC2
VOLVO WORLD TOURING CAR CHAMPIONSHIP AND STCC

Corporate Social Responsibility Policy : (1) Skill development with a focus on technology targeting unorganised
two-wheeler mechanics
(2) Collaborating for a safer environment for mobility
(3) Community Development in areas of operation and presence
(4) Humanitarian aid
(5) Catering to the growing demand for lubricants in the country in an

Its More than Oil, Its Liquid

Engineering

Supply Chain :- Five Pillars

1.Technologi
cal Driven
2.Governme
nt
regulations

Its More than Oil, Its Liquid

Engineering

1. Growing
Economy
2. High
growth
rates
3. Fall in
crude oil
price
4. Growing
number of
automobile
s in India.
5. Huge
Domestic
Market

Threats

1.Competitiv
e Market
2. High loan
rate
3. Tax
structure
4. Small
Business
units
5. Cost
structure

Opportunities

1.
Existing
Marketing
and
Distributi
on
Network
2. Strong
Brand
Value
3. High
Profitabili
ty
4.
Barriers
to market
entry
5.
Reduced

Weaknesses

Strengths

SWOT Analysis

Castrol by
Cstrol India
Ltd

Servo by
Superfleet by
Indian Oil Corp Gulf Oil Corp
Ltd
Ltd

Background

Century old
Indian
experience in oil Maharatna PSU
making business

Strong parent
company
Hinduja Grp

Market Share

~22%

~10%

~7%

Value Offering

Huge Supply
Chain

Price advantage

Strong scientific
expertise

Strategies

Tie ups with

Cost benefits
auto makers and from
sponsorship
Government

Advantage of
existing parent
group upstream
companies

Pricing

3.5L 1755

3.5L 1500

4L 1200

Its More than Oil, Its Liquid

Engineering

Competitor Analysis

 http://www.castrol.com/en_in/india.html
http://www.bseindia.com/stock-share-price/castrolindia-ltd/castrolind/500870
/
http://
content.icicidirect.com/mailimages/IDirect_Castro
l_Q3FY15.pdf
http://
gnu.inflibnet.ac.in:8080/jspui/bitstream/123456
789/2628/1/Oil%20and%20Gas%20Industry.pdf
http://
www.swotanalysis24.com/swot-c/20296-swot-analysi
s-castrol-india-limited.html

Its More than Oil, Its Liquid

Engineering

References

Quiz Time!!
What is the tag line of Castrol ?
What is the current market share of Castrol in
India? (approx)
What is the latest promotional campaign by
Castrol India?
What is the CAGR of last 5 years Sales of Castrol
India ?
Which famous Indian Cricketer was signed as
Brand Ambassador of Castrol India in 2010?

Samir Shah

Its More than Oil, Its Liquid

Engineering

Thank You