New Delhi: Assurance International Limited, which collaborated with the US-based Goodyear Tire & Rubber Company in 2020, has been offering automotive lubricants in the country since 2021. While Goodyear provides product and development support, Assurance looks after manufacturing, marketing, and distribution.
Recently, the companies unveiled their new range of automotive filters and batteries under the Goodyear brand. Automotive filters are essential components in vehicles that remove contaminants and impurities from fluids and air to ensure optimal performance and longevity of various systems.
With this plan to expand into new areas of growth, they are planning to operationalise the INR 50-crore manufacturing unit in Mumbai by December this year.
“Our current capacity is sufficient for the short-term goal of 6-12 months. For the long term, we are working on a new greenfield facility in Mumbai, which is expected to have an annual production capacity of 20,000 KL (1 KL = 1,000 litres) of lubricants,” Sanjay Sharma, Chief Business Officer and Vice President, Assurance Intl Limited- Goodyear Lubricants and Filters, told ETAuto.
Its existing manufacturing plant in Hisar (Haryana) has an annual production capacity of 36,000 KL of lubricant oil. The company said it has raised funds for the investment in the new Mumbai plant from internal sources.
Going forward, the company plans to produce automotive filters in the Hisar plant and batteries in Mumbai. Both the facilities will produce lubricants, which takes the largest share of the business in terms of revenue.
The lubricant maker sees a potential to clock total sales revenue of INR 500 crore in 2-3 years. This includes INR 180 crore from lubricants business, INR 250 crore from batteries, and INR 70 crore from automotive filters.
Plan for overseas markets
The Gurugram-based Assurance Intl Limited, which was incorporated in 2017, is part of the Satya Group that was established in 1974. It manufactures automotive lubricants, batteries, filters, accessories and spare parts. It has presence in countries including Australia, Bhutan, Brunei, India, Indonesia, Laos, Malaysia, Maldives, Myanmar, New Zealand, Nepal, Singapore, Sri Lanka, Thailand, Timor-Leste, Vietnam, Pakistan and Bangladesh.
“For lubricants, we have already ventured into Malaysia, and in the next few months we will begin exports to countries like Vietnam, Indonesia, Thailand, Myanmar, Bhutan, Nepal. Our aim is to export to a total of 8-10 new countries by this year-end,” Sharma said.
To be available in the market by August-end, the company’s automotive filter range will include air, oil, cabin and fuel filters for motorbikes, passenger cars, SUVs, tractors and trucks as well as construction, industrial and marine equipment.
In India, automotive filters will be made available across 16,000 outlets in the aftermarket where Assurance Intl will support with its over 260 distribution channels. The lubricant maker is looking to cross-leverage its strength in lubricants and sees a good business proposition to foray into the same overseas markets with its range of filters. “We aim to be among the top 5 automotive filter brands and achieve a 5% market share by 2025,” Sharma said.
The company claims that its batteries will offer increased power, longer life cycles and superior charging efficiency.
As the automotive and lubricant industry experiences increased demand for more sustainable products, this upgraded line of engine oils will be produced with the latest technology and equipment from Assurance’s modern factory in the state of Haryana.
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