Daewoo ties up with MIL to enter automotive lubricants biz in India

New Delhi, Apr 29 (PTI) South Korean conglomerate Daewoo on Tuesday announced its foray into the Indian automotive lubricant sector in partnership with petroleum and chemical products manufacturer Mangali Industries.

As part of the collaboration, Mumbai-based Mangali Industries Ltd (MIL) will be the exclusive partner to manufacture and sell Daewoo lubricants in the country.

The lubricants will cater to a wide variety of vehicles from two-wheelers and passenger cars to commercial and agricultural vehicles.

"Through this powerful alliance between Daewoo and Mangali Industries Ltd, we are shaping the future of high-performance lubricants in one of the world's most dynamic and demanding markets," Daewoo Director - Strategy & Growth Vineet Singh told reporters here.

Speaking to PTI, senior company officials said the partners were also looking to scale up business in India with plans to set up a second manufacturing unit in Kandla, Gujarat.

MIL currently has a manufacturing plant in Mumbai with 40,000 kilo litres of production capacity, which could further be ramped up to 1 lakh kilo litres depending on the market demand.

The officials said that the second facility in Gujarat would help them enter other segments like white oil and petroleum jellies.

With a manufacturing base set to come along the two leading ports, the partners are also looking at export markets like South East Asia and Africa, officials said.

The companies aspire for a 3 per cent market share in the domestic lubricants segment over the next 3-4 years, they noted.

The Indian domestic lubricants market was estimated to be around USD 6.69 billion in 2023 and projected to reach USD 9.48 billion by 2030. PTI MSS HVA