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September 26, 2022BSE LimitedScrip Code: 538567National Stock Exchange of India LtdScrip symbol: GULFOILLUBThrough: BSE Listing CenterThrough: NEAPS / Digital ExchangeDear Sirs,Sub.:Ref.:Intimation of Investor presentationRegulation 30 of the SEBI (Listing Obligations & Disclosure Requirements)Regulations, 2015In accordance with Regulation 30 of SEBI (Listing Obligations & Disclosure Requirements)Regulation, 2015, please find enclosed herewith Investor Presentation.Further, pursuant to Regulation 46 of SEBI (Listing Obligations & Disclosure Requirements)Regulation, 2015, the enclosed investor presentation shall also be available on the website of theCompany i.e. https://www.gulfoilindia.com/ .For Gulf Oil Lubricants India LimitedSHWETA VIKASGUPTADigitally signed by SHWETAVIKAS GUPTADate: 2022.09.26 15:42:35 05'30'Shweta GuptaCompany Secretary & Compliance OfficerEncl.: as above
Gulf OilLubricantsIndia Ltd.InvestorPresentation1
Gulf Oil InternationalStrong Heritage and LegacyA major globaloil companyfounded inTexas, USAin 1901Name ‘Gulf’originatedfrom Gulf ofMexicoPart of one ofthe so-calledSevensisters (oilcompanies)Part of Hinduja GroupWorld’s firstever highvolume oilwell andfloating drillplatformLaunchedWorld’s icantsDiversified business operationsOperations inmore than100 countries;Blending Plantsin 20 countriesStrong Motorsports LegacyFuel RetailMarineInitially owned byMellon FamilyMerged with StandardOil of California andrebranded as ChevronAcquired by HindujaGroup – 1984(Except USA, Spain &Portugal)Car CareLubricants*GulfExpress1968 – First win at Le Mans infamous Blue & OrangeGulf is synonymous with racingTie-up up with McLaren*We are the single largest Shareholder inQuaker Houghton, USA2
Global PresenceManufacturinglocations acrosskey geographies Europe South America Dubai India China Philippines Singapore Japan Nepal20 Blending Plants, Sold in 100 Countriesand expanding.3
Gulf Oil India - robust businessmodel in place010203The fastest growing lubricantplayer in India over the lastdecadeNo. 2 lubricants brand in India(as per survey commissioned by ACReached Top 3 player amongprivate sector players in IndianLubricant industry.Nielsen)No.2 CompanyreachinVolume (in KKL)Distribution2009372022040506Achieved 10-12% CAGR volumegrowth in the last decade,significantly outperforming thelubricants Industry growth rate.25% CAGR PBT growth in the lastdecadeComplete range of high qualityautomotive and industrial productsincluding BS VI, Syntheticproducts,LongDrainLubricants and EV fluidsHighReturnRatiosconversions Net debtBalance Sheet134Sales (Net of Indirect Taxes) (INR Cr.)CashFree451 5420092,1922022PBT (INR Cr.)2009070809Strong Brand partnerships withMcLaren, M S Dhoni & HardikPandya and Chennai Super KingsState-of-the-art manufacturing &R&D facilities in Silvassa andChennai Capacity for Lubricants- 140,000 KL and AdBlue 30,000 KLEstablishing market share gainsin all segments year on yearandalso growing ruralpresence rapidly202218284
Key Strengths100-year strong legacy in the fueland lubricant sector - globallySuperior technology and everevolving innovations to produceworld-class lubricants; large R&D teambased in IndiaRobust distribution networkhelps to reach the remotestcorners of the countryPioneer of the ‘long draininterval’ value ossautomotive,industrial,andmarine applicationsEnjoys a position among thetop 3 lubricant brands withrespect to brand awareness,purchase consideration etc.Resilient business model andinnovative strategy ensure valuecreation for all aborations (long standing) withtop OEM’s and B2B customersRich history and sports associationslike MS Dhoni, Hardik Pandya, ChennaiSuper Kings (CSK) and McLaren
Product PortfolioAutomotiveLubricants2 wheeler VRLABatteryIndustrialLubricants andSpecialty OilsMarineLubricantsEV FluidsAdBlue6
OEM Presence in IndiaAutomotive OEMsAdBlue OEMsConstruction OEMsIndustrial OEMs7
Robust Business and Revenue ModelBusiness ModelGulf Oil Product Mix (FY22)AutomotiveGulf OilIndiaDomesticNon - Automotive41%Exports21%15%14%DEOB2C/ AutomotiveChannelB2BIndustrial(Direct Industries/Institutional)Infrastructure, Mining,Fleet and PortPersonal MobilityOthersIndustiral80-85% of product portfolio comprises of ‘Automotive/Auto related’ andremaining comprises of ‘Industrial’Retailer/MechanicWorkshops/Spare ineRobust business model with diversified exposure across segmentsB2CGrowing in both B2B and B2C segments whilst maintaining a goodproduct mix for profitable volume growth8
Stellar Pan India Network75,000 300 65500 2BCustomers41,000 1000030Regional OfficesGulf RuralStockistsGulf Bike Stops &Car StopsDepots SupportingLogisticsGulf Branded Bike Stop and Car Stop NetworkAll India network of Gulf Branded IndependentWorkshops located at prime locations (busytraffic, high footfalls, eyeballs)Currently there are 8000 Bike Stops and 2000 Car Stops across 522 cities in IndiaGrowing at 10-15% every yearBattery Sales & Service Network12000 Retail Touch PointsDedicatedServiceTeamPANIndia–11 Service Engineers320 active Gulf Battery Service Pointsacross India9
Manufacturing FacilitiesSilvassa Plant (West India) Lubricants manufacturing Capacity of 90,000KL per annumAdBlue manufacturing capacity of 12,000 KLper annumKey certifications include ISO 9001:2015, ISO 14001:2015, ISO45001:2018, IATF 16949:2016VDA license by QMC GermanyBIS Certification marks license as perIS17042:Part I:2020NABL accredited QC lab with Standard ISO/IEC17025:2017World-class fully automatic PLC enabledblending operations Dedicated manufacturing facility for specializedmetal working fluids High-speed end-to-end fully automatic FillingMachine Fully automatic Blow-Moulding machinesincluding Recycler Fully Automatic Storage and Retrieval System(ASRS) Robust Safety & DisasterSystems and supports Sustainability led best practices followed forplant operations Advance and fully equipped Quality Controllaboratory Installed and commissioned rooftop solarpanels Plant and exports approved by many Indianand global OEMs Awarded ‘Runner Up’ for the ‘The MachinistSuper Shopfloor Awards 2022’ in the category“Excellence in Manufacturing-Large” by Timespublication group.ManagementChennai Plant (South India) Lubricants manufacturing Capacity of 50,000KL per annum Ahigh-techfirefightingmanagement system Key certifications include - ISO 9001:2015,ISO 14001:2015, IATF 16949:2016, ISO45001:2018IGBC Gold CertificationFullyAutomaticAdBlue manufacturingcapacity of 18,000 KL commissioned during 2122 100% provision for solar energy formanufacturing, Grey water recycling, rainwaterharvesting & natural lighting throughout the day Advanced Quality Control Laboratory New global R&D Centre - Gulf’s biggest facilityglobally Customer Experience Centre - the first of itskind in India Plant approved by many Indian and globalOEMs AdBlue manufacturing capacity of 18,000 KLto be commissioned in 2021-2022 State-of-the-art blending technology from ABBFrance— Simultaneous Metered Blender(SMB), Automated Batch Blender (ABB),completely piggable manifold, Drum DecantingUnit (DDU) all integratedby Lubcel TMManufacturing Execution SystemAdvanced ASRS&disaster10
Growth Enablers for lubricants industry in IndiaLow per capitavehicle penetration inIndiaExpected to increaserapidly with rising percapita income crossing 2000 p.a.Growth in automotiveindustryDomestic Auto sales volumeis expected to grow in therange of 5-9% Y-o-Y in 2022-23after 3 consecutive years ofdeclineStrong prospects ofthe rural economyUninterrupted use oftractors throughoutthe yearAdvancement ofengine technologyIndia as amanufacturing hubStrong Emission norms& Demand for facturing pushAtmanirbhar Bharat,in India, impetusChina 1 strategy –for industrial lubesAcceleratedinvestments ininfrastructure building7.8 7.8FY20Total ProductionSource: India Briefing, IBEF, TMA, Invest IndiaFY22Toral salesGrowing GDP anddomesticconsumptionGDP growth rateIn Lakhs9.6 9.7fromMakefromgood8.68%6.45%GOI announced 100 lakhcrore master plan for multimodal connectivity with FY22-6.60%11
Gulf Oil India –Segment-wiseOverview12
AutomotiveBiggest contributor to our total volumes2007New GenerationDiesel EngineOils012008022011032014OEM Tie-ups042018Motorcycle OilsTractor&Scooter OilsDiesel Engine OilsPersonal Mobility Oils Contributes 40% to totalvolumes Pioneered “Longer Drain”lubricantsforcommercialvehicles Contributesvolumes 20-25% tototal05PassengerCar Motor OilsOpportunitiesRobust prospects ofIndia’sautomobilesector and overalleconomic growthAdoptionofnewemission norms andenhanced focus onfuel efficiencyEvolving technologyas well as customerrequirementsSignificant potentialto ramp up ruralpenetrationofautomobilesScope to improve ourmarket share in thePVandtractorsegmentsExpansion of ourreach across variouschannelsandgeographiesDistribution increasekey focusDevelopmentofinnovative productsto adapt to changingmarket requirementShift in customerpreferencesfrompublic transport toprivate transportNew-age ion helps inincreasing speed andaccuracyofoperationswhilereaching a widercustomer base13
IndustrialFast growing segment with high potentialOur industrial network includes200 direct industry accounts and65 industrial distributorsCatering to industry heavy weightsSpecial focus on sector wise plans– Steel, Metal Working, Textile –and increasing customer base iesScope to deepenshare of wallet withexisting customersand getting newcustomers – directand via distributorsaswehaverelativelylowmarket share atpresentHuge infra spendstoleadtoexponential growthin steel, cementand other productsin IndiaAtmanirbharBharat, China 1,MakeinIndiainitiativeswillincrease industrialpush ntatcustomers’ plantsNew projects andone-time Initial Fillopportunitiesinboth Direct andIndirect business14
Infrastructure, Mining and FleetEstablished market leading position in a short spanTie-ups with leading Construction OEMs500 customerssegment,industryweightsmarqueein thisincludingheavyBusinessgrowingrapidly given theinfrastructure impetusin India as aggressiveinvestmentsarecommitted in buildingroads, metros, portsetcOpportunitiesThe infrastructure sector hasbecome the most significantfocusareafortheGovernment of India. Indiaplans to spend 1.4 trillion oninfrastructure over comingyears for the development ofthe country.The government has furthersuggested investment of 5million crore ( 750 billion) forrailways infrastructure from2018-30.India and Japan have Northeast states and are alsosetting up an India-JapanCoordinationForumforDevelopment of Northeast toundertakestrategicinfrastructure projects for theregion15
2-Wheeler BatteryContributes 4-5% to overall revenuesBegan 5-6 years ago to supply quality batteries to the two-wheeler retailsegment To enhance our brand strength in 2-Wheelers, an extension to Gulf PrideMotor Cycle Oil brand To leverage our lubricants retail distribution synergyGulf Pride batteries with the latest VRLA technology are known for theirsuperior cranking power, which gives the rider the benefit of ‘Insta Start’Appointed Indian Cricketer Hardik Pandya as the brand ambassador for this business in 2018BatteryService PointNetwork230Distributors(40% Gulf AutoDistributors)12000 Retail TouchPointsDedicated ServiceTeam PAN India – 11Service Engineers320 active GulfBatteryServicePoints in India
EV FluidsIntroducing a globaleFLUID range0102Formulated specifically for Hybridand Fully Electric Vehicles foroptimal performance to helpreduce CO2 emissions03Launched globally aswell as in India in 202117
Fueling EV Growth via AcquisitionsForayed into the EV charging space inpartnership with Indra Renewable TechnologiesEntered into Emobility space by acquiring 26% stake inTechperspect Software Pvt Ltd ( ElectreeFi )BriefBriefWell known for its Brand ElectreeFi, primarily a SaaS provider havingexpertise in implementation of IoT based eMobility SolutionsA UK based fast-growing company which operates in the EVspace and makes chargers for home charging and other V2G(Vehicle to Grid) requirements. Gulf India holds 7.5% equity alsoIndra commands around 5% market share in the UK homeEV chargers segment and is establishing itself fastStrong relations with OEMCreated loT based eMobility Technology platforms that caters tobusinesses and end customers in EV space with leading OEMs,EV charging networks and EV battery related companiesWorked with Charge Point Operators in Nepal and Malaysiato support their Charging Infrastructure OperationsCurrently around 40% of all EV car owners use ElectreeFiplatform services in some form or the otherWorks in association with the leading stakeholders in the Indian EV industryincluding OEM’s, EV charging networks and EV battery related companiesPositives of Alliance:Positives of Alliance: Indra Renewables, to launch superior technology chargers in UKand Globally, including India Will develop solutions leveraging strengths and play a future role inthe fast-changing eMobility space for two/three wheelers and cars Gained exclusive rights to the use of Indra’s technology for EVcharging in India and would bring these products into India as partof the EV value chain.Tested chargers in Indian conditions alreadywith very good results Will provide superior solutions related to Electric Vehicle Charging,EV Fleet Management and Battery Swapping18
FinancialOverview19
Key Highlights –Q1Crossed 700 crore revenue mark forthe 1st timeOperational Revenue (Cr.)Revenue grew by 69.26% YoYEBITDA grew by 101.83% YoYPAT grew by 82.31% YoY639EBITDA (Cr.)706417Achieved highest quarterly volumes of34,000 KL for core lubricants and focusedon marketing high-quality AdBlue andensuring effective distribution spreadQ1FY22Collaborated with Shibaura Machine; oneof the largest Injection molding machinemanufacturers of IndiaConducted hundreds of Tractor oil changecamps across the country's rural beltswhich has lead to increase rural businessand tractor engine oil portfolioAll business segments witnessed goodgrowth led by the B2C segment coveringbazaar market and OEM FY22PAT (Cr.)Margins FY237Q1FY22GrossEBITDAPAT20
Consolidated Financial HighlightsOperational Revenue (Cr.)EBITDA (Cr.) & 725716265PAT (Cr.) & 84761243121010886926914FY21FY22Cash & Bank Balances (Cr.)587FY2012101,043275FY199Net Worth (Cr.)284FY181592000 00PBT (Cr.)265101002031782115 FY21FY2221
Consistently Rewarding Shareholders& Improving ProfitabilityContinuous increase in dividend with62%Return to shareholders atof ProfitAfter Tax in FY22 (including Buyback &Dividend plus taxes thereon)16.5% CAGR (from FY15 to FY22)Dividend Per ShareEarning per shareBVPS212.751641.891435.7Buyback of11.510.57171.239.8149.731.9 Rs. 85 cr114.923.7DivedendRs.5 per 015201649.620172018201920202021202222
SafeHarbourDisclaimerThispresentationhasbeenGulf Oil Lubricants India Limited.preparedbyThe information, statements and analysis made in ojections and estimates are forward lookingstatements and progressive within the meaning ofapplicable security Laws and Regulations.The analysis contained herein is based on numerousassumptions. Actual result may vary from thoseexpressed or implied depending upon economicconditions, government policies and other incidentalfactors.No representation or warranty, either expressed orimplied, is provided in relation to this presentation.This presentation should not be regarded by recipientsas a substitute for the exercise of their own judgment.For further information:Mr. Manish Gangwal – CFO – Gulf Oil Lubricants India Ltd.Email: mkgangwal@gulf.co.inMr. Snighter Albuquerque – Adfactors PR Pvt. Ltd.Email: snighter.a@adfactorspr.com23
Gulf Oil India - robust business model in place Volume (in KKL) Sales (Net of Indirect Taxes) (INR Cr.) PBT (INR Cr.) 284 18 2022 2009 2,192 451 2022 2009 134 37 2022 2009 The fastest growing lubricant player in India over the last decade 01 No. 2 lubricants brand in India (as per survey commissioned by AC Nielsen) No.2 Company in Distribution .
