With the introduction of its new Ester 5 brand of lubricants, Savita Oil Technologies Ltd. (Savita Oil), is focusing more intently on the automobile and construction equipment industries.
The business is currently evaluating the Ester molecule for usage as battery coolant in electric two- and three-wheeler companies. Executive Director of Business Development at Savita Oil Siddharth Mehra emphasised that Ester 5 lubricants outperform conventional synthetics in terms of performance. Comparing the novel product to standard Group-III base oil lubricants, studies showed that it produced 33% less friction and 28% fewer engine deposits.
In FY22, the company introduced synthetic ester, and in Q2FY24, it inaugurated a dedicated manufacturing facility. The Mahad plant has an 8,000 metric tonne annual capacity that may be expanded. The business plans to increase output from 2,000 metric tonne to 4,000 metric tonne by October 2024.
Ester molecules provide a chance for Savita Oil because they are traditionally utilised in expensive applications like jet engines and wind turbines because of their biodegradability and higher import prices. The corporation may take advantage of pricing benefits because of its domestic production. utilised edible oils from domestic and East Asian sources, including Malaysia and Indonesia, are utilised to create the Ester 5 base stock.
“We want to take this new product to the masses,” said Gautam Mehra, MD of Savita Oil. The company currently derives 22-25% of its revenue from theautomotive segment, with marquee clients like Hero MotoCorp, Mahindra & Mahindra, Tata Motors, and Swaraj. Savita Oil aims to increase its automotive lubricant market share from 2.5% to over 5% in the next 3–4 years.
Beyond B2B sales, Savita Oil markets its popular SAVSOL range of lubricants, greases, and coolants directly to retail customers across passenger cars, two-wheelers, commercial vehicles, and farm equipment segments.
The industrial segment, including construction equipment, contributes 30–35% of Savita Oil’s revenue. The company offers a comprehensive portfolio of hydraulic oils, turbine oils, and other industrial lubricants, catering to clients like Tata Hitachi, Sany, and Hyundai Construction Equipment. With India’s infrastructure development gaining momentum, Savita Oil’s leadership expects this segment to be a key growth driver going forward. Savita Oil reported revenues of Rs 3,653.4 crore and a net profit of Rs 225.7 crore in FY23.