Valvoline - A Significant Lube Player in the Construction Industry

Valvoline A Significant Lube Player in the Construction Industry
"Valvoline has grown very rapidly in the last three-four years whereas the industry as a whole grew only 2-3% each year. Valvoline has outperformed in the industry by clocking high double digit growth each year. This translates in acquiring additional market share each year. We are now leader in the country in many segments and growing rapidly in many others. The USP of Valvoline in the construction industry, apart from excellent products quality, is the distribution network which can serve almost every construction site even in the remotest corner of the country," says Mr. Akhilesh Mishra, Segment Manager - Construction, Mining and Cement, Valvoline Cummins Limited in an interview with S. A. Faridi.

What would be the focus of your company’s participation in the forthcoming Excon 2011 international trade fair to be held in Bangalore, November this year?

Excon is an important event for us since it brings us face to face, both with the equipment manufacturer and the end user. We have always been participating in Excon with our JV partner Cummins. However, in the 2009 edition, we took a decision to participate independently. This paid rich dividends for us and in the last two years, Valvoline has grown to be a very significant lube player in the construction industry. This year, we have a very large presence, our largest yet, and we plan to deepen our relationship with the customers by showcasing our latest products, services and value added features.

Is there any plan at hand to launch any new product and service?

We at Valvoline, believe in continually offering new products to meet the technological demands of the new age equipment. Therefore, we plan to showcase three of our latest products in the event-
  • Pro Fleet 10W40–A fully synthetic HDDEO (Heavy Duty Diesel Engine Oil). This oil not only offers increased protection to engine but also offers increased drain intervals of upto 3-4 times.
  • Synpower 75W140 – Fully synthetic gear oil. This again offers excellent properties for use in new age dump trucks.
  • Premium Blue CI4+ Engine Oil: Our latest range of 15W40 CI4+ engine oil which are also approved by Tata Motors for their new trucks.

Lubrication plays a vital role to keep the machine working for a long time but it has been noticed that due attention is not given to the lubricants either during selection of oil or during change of oil properly; what is Valvoline doing to bring awareness among the end users about the benefits of choosing right oil and changing it properly for optimum equipment uptime?

Valvoline A Significant Lube Player in the Construction Industry
This is a very good question. We grapple with this problem frequently and therefore we decided to counter it by being proactive – this is why we have launched a series of training programmes directed at the gamut of the decision makers involved–mechanic, operator, maintenance manager, purchase manager and the site in charge/owner. Our training programmes cover the basics of lubricants, importance of testing, correct storage and handling techniques, optimum drain intervals, advance course in preventive maintenance, etc. Excon and events like this also help us in spreading awareness about lubricants and this is why we participate in a major way in such trade fairs.

With rising input costs, interest rates, and high wages; how difficult it would be for the lubricant players to keep price stable and how will VCL handle this situation?

Last year has indeed been challenging for all the lube players. The industry saw multiple price revisions within the year by each player. This was an exceptional year. In the foreseeable future, there is no indication of the prices easing off. If the costs continue to rise then lubricant companies are forced to pass on a share of the burden to the consumers. However, we at VCL try and mitigate the impact through such measures as training and new products – thus reduce wastage and pilferage, use oil testing to optimize drain, use new age products that offer enhanced value proposition, and so on. Most of these measures have been appreciated by the customers – that is why we have gained market share, each successive year despite such stiff competition and adverse raw materials pricing situation.

How would your participation in this mega event pep up the promotion of your company’s marketing objectives and impart a new dimension to your company’s business areas?

In the institutional marketing space, trade fairs play a very important role where the entire industry is present under one platform and thus any effort if well directed can reach the intended audience. We thus plan to 'Do Something Big' during Excon. I am sure that it will wow and attract a lot of our customers, existing and potential. Of course, every marketing effort has to be matched by excellent product quality and delivery – and we are geared up for both as is evident from the new products we have lined up to be unveiled at the event.

A word about your company and its important business areas serving the construction industry.

Valvoline has grown very rapidly in the last three to four years whereas the industry as a whole grew only 2-3% each year. Valvoline has outperformed in the industry by clocking high double digit growth each year for the last four years. This translates in acquiring additional market share each year. We are now leader in the country in many segments such as PowerGen, Mining etc and growing rapidly in many others.

In the construction industry, the growth has been very rapid in the last two years. Few big names in the industry have been associated with us in the past years and many more are being added regularly. It is also evident from the customers who are willing to appear on Valvoline CABA (Customer as Brand Ambassadors) advertisements.

The USP of Valvoline in the construction industry apart from excellent products quality, is the distribution network, which can serve almost every construction site even the remotest corner of the country.
NBMCW November 2011
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