Ravi Kirpalani, Managing Director, Castrol India Ltd.

You have introduced the Vecton RX fuel saver. What went into its development?

The product has been under research for four years now. We started with our R&D facility in Pangbourne, UK. The idea was to develop a fuel efficient oil, suited to Indian conditions, certifiable by Tata Motors. This product set is actually the first that any truck OEM, anywhere in the world is endorsing for fuel efficiency. The testing has also been done at our Wadala (Mumbai) center. We have conducted a large number of on-road trials, and are delighted to say that we have brought it under our ‘Vecton’ brand which is our global brand. It is Castrol’s most premium CV oil brand. It is unique in the sense that it has ‘System 5’ technology which allows it to do a number of things at the same time. It has better fuel efficiency, longer drain intervals of 60,000 km; offers better protection, low top up and gives more power as well. Normally these are the things which you have to trade off against one another. For the ‘RX fuel saver’ variant under the ‘Vecton’ brand, we have co-engineered with Tata Motors. The oil offers three per cent better fuel efficiency, which is a big thing for a truck driver. If he drives his truck for more than one-lakh km per year, the RX fuel saver oil will help him save around Rs. 40,000 per truck, which is very significant. Part of the fact is, this oil also offers environmental benefits by having lower consumption of hydrocarbons in it, which is also very significant.

We believe this will be available for every OEM and not be limited for Tata vehicles even though they may have endorsed it?

‘Vecton’ brand will be available as any other Castrol brand. But we are not planning to get into a relationship with any other OEM for the ‘RX Super max fuel saver’. It is exclusively for Tata Motors. We may sell it in our own channel as well so that we can go beyond their reach but it will still remain exclusively for Tata in the market.

Castrol has been emphasising on sporting activities in India. What is the motive behind it?

I think it is because of a couple of things. For example, you look at our sponsorship for cricket. India has a big chunk of population whose families have no history of automobile ownership. We need to find ways to keep connecting with these people, who are also first-time users. Castrol has been around for more than 100 years and given the amount of passion India has for cricket, I think it is a great way to establish connection with such users. Broadly, our relationship with sport is based on the commonality of values. It is about high performance in difficult conditions and passion for winning. It is also about testing in the most challenging environments. Secondly, beyond cricket, the big excitement will be the project called bloodhound. It is a project where a team of people have got together to build special vehicle that will try and break the land speed record of 1,000 kmph. The plan is slated for sometime in the later part of this year, in South Africa. Castrol is a sponsor. I think, it makes a good fit for us.

Tata looks keen to project truck racing as a romantic activity, also addressing the problem of scarcity of drivers. How do you look at the sporting activity?

When Tata Motors started this last year, a lot of people would have been skeptical about the possibility of such race happening. But now I can see an aura building at the circuit. I think it is truly visionary as they are trying to make truck and truck racing glamorous in India. We have been partnering with Tata for three decades now; we have co-engineered oils. We have worked with them to improve safety. I think therefore that this race is yet another way to build further our existing relationship with them.

As a part of the ecosystem, what reforms do you see Castrol driving into the CV sector?

It is the strength of the relationship that we have. We started our journey 10 years ago when we began to specify the hardware. Earlier there was not even a seat for the co-driver (in a truck). He used to sit on a stool. A decade ago, for our sales people, we went to Tata Motors to get cars equipped with ABS and airbags. Tata created 200 Indica cars for us. Similarly for the trucks, we created a minimum standard safety truck with Tata Motors, which today in the industry is called as Castrol truck. Even today fleet operators go to Tata and often ask for similar specifications. There is a lot we can do to make our roads safer. Even though we are not a workshop specialist, we have been asked by dealerships to help them. For this, we created a workshop safety manual. This we are rolling out to all the dealerships and workshops, to train them in basic precautionary measures. We will also work towards getting people interested in taking up the driving profession, as well as help drivers enhance their driving skills.

In terms of environment, the industry is moving to BS IV emission norms. There’s also the talk of skipping one standard and moving to the next. As a lube manufacturer, how do you look at this?

Castrol is a global brand and we are already equipped with technologies that are applicable in more developed parts of the world. We also have a technology centre in India. If we talk about Vecton, the 10W40 viscometrics oil is the first that we have brought into India though it is still not synthetic but a high grade mineral oil with CI4+ specifications. If you look at the viscometrics for trucks, it used to be 20W40, which later on got to 15W40. We also have 5W40, which is semi synthetic oil. We also have 0W40 oils that are going for trucks. Also, Lubrizol is here with which we have a great partnership as an additives manufacturer. So, we are well equipped for upcoming regulations, both in terms of product as well as pricing.

What role does the Wadala R&D centre plays in local development?

We have moved our global R&D for motorcycles to India. So any R&D for motorcycle oils applicable anywhere in the world are developed in India. Most of the two-wheeler owners in the developed markets use it for leisure. In India, a two-wheeler is an important mode of transportation. The market size here is massive. It is close to 100 million. Clearly, Asia is going to be the future for two-wheeler market growth. It makes sense bringing technology here. Though we don’t do global developments for CV and passenger cars here, we do everything here to support local needs.

You have a blending facility in India. Are you looking at further expansion in India?

I think in terms of a facility, what we have is enough. We need to upgrade these facilities however. Our Silvasa plant is now TS16949 certified, which is required by automotive OEMs. A lot of international OEMs are looking at India as a manufacturing hub including Ford, Volkswagen, JLR and also BMW. Since we have already been a supplier to many of these OEMs, it is important that we upgrade our facilities to meet the rising demand. We also have an engagement centre there. It enables us to bring the technology live for our customers. Consider Magnatec for example. We sell this product for cars. It allows a thin film of oil that remains stuck to all parts of the engine and reduces engine wear and tear by 75 per cent.

How much of your business in India comes from CV?

Nearly two-third of the industry in volumes is from CV. It contributes to 60 per cent of our volumes.

Are you looking at any co-branding of oils with OEMs?

There are some OEMs which want lubricants in their own brand. There are also some who are happy to recommend Castrol. There are those who are looking out for co-branding of lubes. We are looking at all models as long as it makes sense for both Castrol and OEMs to come together.

Is the need for OEMs and engine manufacturer to collaborate with oil companies growing?

It makes sense as technology is changing very fast. The government is legislating that tail pipe emissions should be controlled; engine manufacturers also need to change their metallurgy. So they also find it useful to co-engineer.

Does that entail a lot of investment for both? How does it reflect in the mid and the long term?

We are in this business to build long term partnerships. It is very important to co-engineer products as you get to understand the partner and the technology deployed on the engine which allows us to have great insights to develop right kind of oils so we are ready to invest there as well.

What kind of a role does fuel play?

I think the fuel quality norms are being laid down as well. There is also the problem of sulphur content variation and adulteration of fuel. Everything is kept in mind when the lubricants are designed. Vecton is very good at soot dispersal which generally arises during the burning of fuel and often creates a problem to maintain lubrication in the engine. We are also looking at the possibility of marketing fuel additives apart from lubricants to improve the quality of fuel. We have developed a product which is in the testing stages for cars.

Do you hope to make these additives in India or are they already available globally?

It is very new for us and we are looking at it. Testing is going on. We have done it in China and a little bit in India.

What future do you see for alternate propulsion mediums like ethanol and biogas?

We have seen such developments in some parts of the world. It is not such a massive global movement. We are watching, and I think it is a complex question. You have to look at the totality of it before you can take a call. The work at our end has started but it will call for a completely different kind of lubricants. Considering the kind of temperature they will be operating in.

How do you look at the competition in the CV stream?

India is one of the most competitive markets in the world. There are more than 30 to 40 brands and hundreds of local operators.

Are you also planning to export RX Fuel Saver?

Not initially. When Tata exports its trucks, we will be with them. At the moment however, it will be for India only. and web page.