Hinduja Co is exploring acquisitions of charge point operators and firms in intelligent grid tech, according to Gulf Oil Int’l CEO.
Gulf Oil Lubricants India plans to become a leader in the electric vehicle charging ecosystem by acquiring charge point operators (CPOs) and companies in the intelligent grid technology space, according to top executives.
“We are looking at the complete value chain. From manufacturing to research and technology,” said Mike Jones, CEO of Gulf Oil International, a London-headquartered Hinduja group firm. “We started from one end of the value chain by manufacturing EV chargers and are now looking to move to the rest as we want Gulf to be around for another 100 years,” he said.
Smart grid technology is a combination of hardware and software designed to improve the efficiency of electrical grids by enabling bi-directional communication. With smart grids, electric cars can send energy to various recipients using digital technologies, sensors, and software to better match the supply and demand of electricity in real time.
The muted sales of lubricants are a result of the global effort to phase out internal combustion engine (ICE) vehicles in many developed countries. These countries are promoting the use of electric vehicles (EVs) and the need for a charging infrastructure in EV markets. As a result, many lubricant companies and fuel retail firms are entering the EV charging space.
Jones emphasized that India’s lubricant market has been outperforming the global market, with growth rates of two to three times the global average. As a result, Gulf, which has a strong presence in India, can afford to invest heavily in the electric vehicle infrastructure and also focus on building its research and development capabilities. In Jones’ view, Gulf has the flexibility to do so since its core lubricant business is performing exceptionally well in India, which is its largest market worldwide.
Gulf Oil International plans to invest $80 million in the EV business over the next three years. Out of this, $20 million will be invested in India and the remaining $60 million will be invested globally. The India subsidiary will be the “center of excellence” for Gulf Oil International’s EV charging business and will function as a manufacturing and export hub. Gulf Oil International intends to start exporting made-in-India chargers to Europe over the next six to eight months and then to 100 countries worldwide where it has a presence.
Ravi Chawla, who is the managing director of Gulf Oil Lubricants, has stated that the company’s strong brand recognition among consumers, its established partnerships with various automakers, and its extensive network of 10,000 outlets, make it a natural expansion for the company to venture into the EV infrastructure space.
Gulf Oil has made strategic investments in the electric vehicle (EV) charging space. In August 2023, Gulf Oil acquired a 51% stake in Tirex, a company focused on EV charging infrastructure. Additionally, Gulf Oil invested in Indra Renewable, a UK-based AC (slow) charging company with an 8% share of the UK home charging market, and in ElectreeFi, an EV software-as-a-service (SaaS) provider that offers charging management software to automakers in India.
According to Manish Gangwal, chief financial officer at Gulf Oil India, the company expects the turnover from their EV charging business to double annually, becoming a 500-700-crore business over the next 5 to 7 years. In FY24, the company anticipates their turnover from the charging business to double to 25 crore, and to 50 crore in FY25.
Gangwal also highlighted the government’s electrification target for buses in India, with 800,000 expected to be converted to electric by the end of the decade. This presents an opportunity for Gulf Oil, as 200,000 fast chargers are needed to support these buses. Gulf Oil aims to meet all EV charging needs, from home charging to destination charging, as well as business-to-business charging services.
