Wednesday 13th December 2017

    GST Success: German Mirror Lubricants evaluating manufacturing plant in India; aims 0.5% mkt share by 2019-20

    Having evaluated the Indian market in 1990s, German Mirror Lubricants & Greases Co. FZE, a German company now based in Dubai, has made a quiet entry into India, but with big long term plans to set-up a manufacturing plant and target supplies to South East Asian countries apart from servicing the Indian clients. The entry largely got facilitated after the implementation of Goods and Services Tax (GST). German Mirror selling its lubricants under the brand name Mirr Oils in more than 70 countries has tied-up with Mumbai-based, A.N. Corp, as a distribution partner to supply Euro VI grade Aviation Turbine Fuel & Gear Oils, Specialty Fluids, Passenger Car Motor Oil, Gasoline Engine Oils and Heavy Duty Diesel Engine Oil. Read On ..

    The company plans to market its premium range of lubricants and greases to automobile, shipping and manufacturing customers in nine States in the first phase followed by eight states in second phase. Once business stabilises, it plans to invest in a lubricant oil blending plant, large enough to meet the Indian demand as well as the potential demand from South East Asian countries.

    "India is the third-largest market in the world after China and USA, with 6% global market share. It has potential to be in the [top] two. We are evaluating market conditions to set up a lubricant oil blending plant in the near future," Mohammed Hussein Hindi, MD, German Mirror said.

    Adding further detail to what Hindi said, Kiran Hebbalkar, Marketing & Sales Manager, Asia Pacific & Africa at German Mirror said, "Our plan is to set up a large plant with options of supplying to the South East Asian markets.We are evaluating various locations on the West, South and East Coast of India, especially, Mumbai, Chennai and Kolkata due to their proximity to ports," Hebbalkar said.

    The company has already appointed around 48 distributors with plans to add another 50-60 distributors in coming months. The firm exports to more than 70 countries and supplies to Porsche, Daimler, Volvo, Cummins, MAN and Volkswagen. The aim is to tie-up with few Indian OEM manufacturers, however the condition is to have a manufacturing company in India operating for the last two years.

    The company is targeting around 0.5% share of the 2.3 million metric tonnes lubricants market in India by 2019.

    In 1999, German Mirror had zeroed in on India to relocate business operations as manufacturing had become expensive in Germany and India was known as a low-cost manufacturing base. In 2000, the firm set up its grease manufacturing and oil blending base in the UAE where it has invested more than $100 million.

    "For competitive reasons, we wanted to relocate base to India but stayed away," said Mohammed Hussein Hindi, MD, German Mirror. "That was in 1999. Because of the complicated tax structure in India and difficulty in running a business here, we shifted to Sharjah from Germany," he said.

    "Now with GST implemented, we found the business environment conducive to enter India. We may be late entrants, but the time is right," Hindi added.

    During the initial phase, Mirr Oils will cover west, south and east region which includes eight states such as Maharashtra, Gujarat, Madhya Pradesh, Goa, Karnataka, Kerala, Tamil Nadu, West Bengal and Odisha.

    In the second phase, the company will cover another eight states by June 2018. The new ranges includes ATF & Gear Oils, Specialty Fluids, Passenger Car Motor Oil, Gasoline Engine Oils and Heavy Duty Diesel Engine Oil. All products are made from 100% Virgin Premium Bases Oils & Additives.

     

    - TradeBriefs Bureau

     

     


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