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4	4
5	5	= Company History =
6	6
7		-Castrol was founded by Charles “Cheers” Wakefield under the name of ‘CC Wakefield & Company’. In 1899 Charles left a job at Vacuum Oil to start a new business selling lubricants for trains and heavy machinery. {{footnote}}https://www.castrol.com/en_in/india/home/castrol-story/our-heritage.html{{/footnote}}
	7	+Castrol (NSE: CASTROLIND) was founded by Charles “Cheers” Wakefield under the name of ‘CC Wakefield & Company’. In 1899 Charles left a job at Vacuum Oil to start a new business selling lubricants for trains and heavy machinery. {{footnote}}https://www.castrol.com/en_in/india/home/castrol-story/our-heritage.html{{/footnote}}
8	8
9	9	Early in the new century, Wakefield took a personal interest in two sporty new motorised contraptions – the automobile and the aeroplane. The company started developing lubricants for these new engines, which needed oils that were runny enough to work from cold at start-up and thick enough to keep working at very high temperatures. Wakefield researchers found that adding a measure of castor oil, a vegetable oil made from castor beans, did the trick nicely. They called the new product “Castrol.” In 1919 John Alcock and Arthur Brown choose Castrol to lubricate their engine on the first trans-Atlantic flight.
10	10
11	11	Having helped pioneer a new kind of motor oil, CC Wakefield pioneered a new method of getting customers to notice the product: sponsorship. The Castrol name appeared on banners and flags at competitive aviation events, auto races and at attempts to break the land speed record.
12	12
	13	+
	14	+[[image:CASTROLIND0.png]]
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	16	+
13	13	By 1960, the name of the motor oil had all but eclipsed that of the company’s larger-than-life founder, and so ‘CC Wakefield& Company’ became, simply, Castrol Ltd. In 1966 The Burmah Oil Company bought Castrol and in 2000 Burmah-Castrol was purchased by BP.
14	14
15	15	As well as having a heritage of passion and speed, the Castrol brand also stands for innovation and performance:
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20	20	* 2017 Castrol launched its first bio-synthetic engine oil with 25% renewable plant-based oil
21	21
22	22
	27	+[[image:CASTROLIND2.jpg]]
	28	+
	29	+
23	23	== Plant Locations ==
24	24
25	25	The Company’s plants are located at
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28	28	* Paharpur in West Bengal and
29	29	* Silvassa (Union Territory).
30	30
31		-
32	32	== Product ==
33	33
34	34	**Car Engine Oil & Fluids**
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39	39	* Auto Transmission Fluids
40	40	* Greases
41	41
42		-
43	43	**Motorcycle Oil & Fluids**
44	44
45	45	* Motorcycle Engine Oils
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49	49	* Gear Oils
50	50	* Greases
51	51
52		-
53	53	**Commercial Vehicle Oil & Fluids**
54	54
55	55	* Diesel Engine Oils
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60	60	* Hydraulic Fluids
61	61
62	62
	67	+[[image:CASTROLIND3.png]]
	68	+
	69	+
63	63	= Industry Overview =
64	64
65		-India is the world’s third largest lubricants market1 after US and China with approximately 2.8 billion litres of annual consumption2 . The lubricants market in India is highly competitive and fragmented comprising national oil companies, several international majors and a large number of local companies. The Company operates in all major categories such as automotive, industrial and marine & energy applications. It is a wellentrenched leading international player in retail automotive lubricants and has a significant presence in specialized industrial lubricants. {{footnote}}https://www.castrol.com/content/dam/castrol/country-sites/en_in/india/castrol-india-limited-ar-2020.pdf{{/footnote}}
	72	+India is the world’s third largest lubricants market1 after US and China with approximately 2.8 billion litres of annual consumption2 . The lubricants market in India is highly competitive and fragmented comprising national oil companies, several international majors and a large number of local companies. The Company operates in all major categories such as automotive, industrial and marine & energy applications. It is a well-entrenched leading international player in retail automotive lubricants and has a significant presence in specialized industrial lubricants. {{footnote}}https://www.castrol.com/content/dam/castrol/country-sites/en_in/india/castrol-india-limited-ar-2020.pdf{{/footnote}}
66	66
67	67
68	68	== Demand drivers ==
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73	73
74	74	Demand for automotive lubricants is driven by the expansion of vehicle population as well as the usage of vehicles in the country. This demand is also linked to economic growth and performance of the manufacturing and agricultural sector. Industrial lubricants demand is observed to have a strong co-relation with the Index of Industrial Production (IIP), which is largely driven by economic activity. In case of marine and energy lubricants, the demand drivers include global and local ship movements which facilitate large scale movement of cargo as well as the installed base of offshore rigs and their uptime.
75	75
76		-Supply drivers
77	77
	84	+== Supply drivers ==
	85	+
78	78	Lubricants are manufactured by blending base oils with additives. This blending involves highly advanced formulations as per the specific purpose the lubricant serves, as well as in line with the OEM specifications and industry norms.
79	79
80	80	India is a net base oil deficit market leading to large scale import of base oil and additives. This exposes the lubricants business to fluctuations in foreign exchange rates.
81	81
82	82
83		-Overall lubricants market
	91	+== Overall lubricants market ==
84	84
85	85	Overall vehicle sales declined severely compared to the previous year by ~~24% ytd November 20203. This was largely due to the tough operating environment and restricted activity in the first half of 2020 which showed subsequent signs of recovery in the latter half.
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91	91	Globally, the shipping industry continued to face challenges with changes in fuel landscape, falling freight rates, Covid-19 induced slowdown and increasing lubricants and bunker prices.
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93	93
	102	+[[image:CASTROLIND4.jpg]]
94	94
95		-Business Overview
96	96
	105	+= Business Overview =
97	97
98	98	Automotive lubricants: The Company continued to drive premiumization and synthetization in the personal mobility segment, despite a challenging operating context.
99	99
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115	115	The company completed the re-certification audit of ISO 9001: 2015 and IATF 16949:2016 standards, and the Silvassa plant was the proud recipient of the Ford Q1 re-certification, a recognition of the plant’s focus and delivery of quality excellence.
116	116
117	117
118		-Financial Highlights
	127	+= Financial Highlights =
119	119
	129	+**Castrol India Announces 4q 2020 (Oct - Dec) and Fy 2020 (Jan - Dec) Results **{{footnote}}https://www.castrol.com/en_in/india/home/castrol-story/newsroom/press-releases/castrol-india-4q-results-2020.html{{/footnote}}
120	120
121		-Castrol India Announces 4q 2020 (Oct - Dec) and Fy 2020 (Jan - Dec) Results
	131	+**1 February 2021**; Castrol India Limited delivered a resilient financial performance for FY 2020 in a difficult year marked by the pandemic and ensuing external challenges.
122	122
123		-[[https:~~/~~/www.castrol.com/en_in/india/home/castrol-story/newsroom/press-releases/castrol-india-4q-results-2020.html>>url:https://www.castrol.com/en_in/india/home/castrol-story/newsroom/press-releases/castrol-india-4q-results-2020.html]]
124		-
125		-1 February 2021; Castrol India Limited delivered a resilient financial performance for FY 2020 in a difficult year marked by the pandemic and ensuing external challenges.
126		-
127		-
128	128	2020 has been a story of two halves. While the company continued with its priorities through the year, keeping safety and wellbeing of its people and supporting communities the company operate in at the fore, the company gained good momentum in the second half with the partial revival of demand. In 2H 2020, revenue improved by 54% at INR 1,818 crs while profit from operations was 122% higher at INR 501 crs versus 1H 2020.
129	129
130		-
131	131	In 4Q 2020, the company continued to invest in its key brands with a significant increase in its marketing and advertising spends year-on-year (INR 65 crs in 4Q 2020 versus INR 11 crs in 4Q 2019), which helped in achieving a top-line growth of 6% versus 3Q 2020. The company expect the positive impact of this investment to continue going forward.
132	132
133		-
134	134	Castrol India has also taken actions to prepare the business for growth in the future including corrective pricing actions for its commercial vehicles portfolio which has yielded double digit volume growth in the last quarter as well as inventory reduction for distributors to help improve their working capital.
135	135
136		-
137	137	The company continued to invest in digital technology and efficiency programmes leading to robust working capital management and judicious cost management thus generating healthy cash flow from operations for FY 2020 of INR 893 crs which is 1.5 times of Profit After Tax.
138	138
139		-
140	140	With the pioneering and innovative spirit that Castrol is known for, the company continued to invest in cutting edge technology, as the company launched its all new premium range of two-wheeler lubricants in 4Q 2020, Castrol POWER1 ULTIMATE, developed with full synthetic technology for bikes, sports bikes and scooters offering both protection and performance for riders.
141	141
142		-
143	143	Castrol lubricants is now available across over 1,350 Jio-bp sites and has seen good uptake, ensuring a much wider reach and easy accessibility of its premium quality lubricants in the recently launched Jio-bp channel.
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145	145
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147	147
148	148	were recognised externally for consistent delivery and performance as JCB awarded it as best supplier for 2020.
149	149
150		-
151	151	The company thank the team for their extraordinary efforts in a tough year and are confident that the actions Castrol India has taken in this year will be the building blocks to aid its growth in 2021 as and when the economic environment returns to normalcy.
152	152
153		-
154	154	The Board of Directors of the company has at its meeting held on 1 February 2021 recommended a final dividend of INR 3.00 per share (2019: second interim dividend INR 3.00 per share) for financial year ended 31 December 2020. This is in addition to an interim dividend of INR 2.50 per share (2019: INR 2.50 per share).
155	155
156		-
157	157	The register of members and share transfer books of the company will remain closed for the purpose of final dividend from 24 April 2021 to 30 April 2021 (both days inclusive). The final dividend, if approved by the shareholders of the company at the 43rd Annual General Meeting, will be paid on or before 30 May 2021.
158	158
159	159
	157	+= References =
160	160
161		-
162		-
163		-References
164		-
165	165	{{putFootnotes/}}