Gulf Oil Lubricants India is looking to acquire charge point operators (CPOs) and companies in intelligent grid technology space as part of a strategy to become a leader in the electric vehicle charging ecosystem, top executives said.
“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 told ET.
The intelligent or smart grid technology is a combination of hardware chargers and software to boost efficiency of electrical grids or networks by enabling bi-directional communication. Smart grids allow a car to send energy to various recipients using digital technologies, sensors, and software to better match the supply and demand of electricity in real time.
Muted sales of lubricants globally as various developed countries are in the process of phasing out ICE (internal combustion engine) vehicles and promoting electric vehicles along with the need for a charging infrastructure in EV markets have prompted many lube companies and fuel retail firms to enter the EC charging space.
Jones, though, emphasised that India has been outperforming the global lube markets, expanding at two-to-three times the global average.
Therefore, with the core lubricant business “doing extremely well in India – its biggest market globally”, Gulf “has the luxury” to spend heavily in the EV infra landscape and build its R&D capabilities, he said.
It plans to invest a third of the cumulative USD 80 million (USD 20 million in India and the rest globally) it has invested in the last three years in the EV business, he said.
The India subdidiary will be the “centre of excellence” for Gulf Oil International’s EV charging business and will serve as a manufacturing and export hub, Jones said.
Starting from exports to Europe over the next six to eight months, Gulf plans to ship made-in-India chargers to 100 countries where it is present, he added.
Ravi Chawla, managing director of Gulf Oil Lubricants, said, “A high brand recall which Gulf enjoys among the consumers, its ongoing relationship with various automakers, and a strong network of 10,000 outlets make it a logical extension for the company to diversify into EV infra space.”
In addition to buying 51% in Tirex in August 2023, Gulf Oil invested in Indra Renewable, a UK-based AC charging (slow charging) company with about 8% share of the UK home charging market, and in ElectreeFi, an EV SaaS player that provides charging management software (CMS) services to automakers in India.
Less than a year after the stake purchase on Tirex, Gulf Oil India sees the turnover from the charging business doubling every year and becoming a INR 500-INR 700-crore business over the next 5 to 7 years, said Manish Gangwal, chief financial officer at the firm.
Its turnover from the charging business is set to double to INR 25 crore in FY24 and to INR 50 crore in FY25, he stated. “At Gulf, we want to serve all needs – from home charging, plug-in at home, destination charging, as well as the business-to-business needs,” Gangwal said.
He sees an opportunity for his firm in the government’s electrification target for the buses. Out of 2.4 million buses on Indian roads, 800,000 are expected to be converted to electric by the end of this decade. Assuming that every four buses will require one fast charger, there’s a potential of 200,000 chargers there alone, Gangwal said.
