According to a top corporate executive, the multinational energy giant Shell has strengthened its position in the third-largest lubricants market in the world by acquiring Mumbai-based Raj Petro Specialities.
The German Brenntag Group sold its 100% equity stake in Raj Petro Specialities Pvt Ltd to Shell, which has already invested more than $5 billion in India along the energy value chain, from LNG import facilities and gasoline stations to renewable energy and technology centers.
She said Shell Lubricants’ acquisition of Raj Petro Specialities supports its aspirations to expand its portfolio and client base in India, one of its important growth regions, without revealing the transaction’s financial details.
Raj Petro provides a broad range of goods, including transformer oil, petroleum jellies, white oils, waxes, and lubricants. The company has manufacturing sites in Silvassa and Chennai. The German company Brenntag purchased the over 80-year-old Mumbai-based company in 2017–18.
The inclusion of Raj Petro will bolster Shell’s network of more than 200 distributors and its lubricating oil blending facility in Taloja, Maharashtra.
She noted that it will help Shell achieve new synergies and economies of scale across the lubricant supply chain. “Raj Petro adds a new portfolio which is in growing sectors of pharmaceuticals, in personal care, in power transmission, and in white oils which then add on to our current portfolio to delight our customers in new ways,” according to her.
India, with the world’s third-largest lubricant market, is one of Shell Lubricants’ four focus nations for company growth.
It serves over 50,000 locations via a network of 200 B2C and B2B distributors.
The company already has established relationships with OEMs that enable it to jointly develop energy solutions. Among them are some of the leading automakers in the world, including Hyundai, Mahindra, Nissan, BMW, and Maruti Suzuki, as well as industrial clients like Volvo, John Deere, Komatsu, and Thermax.
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Strong synergies between product development, supply chain effectiveness, and consumer reach are made possible by this integration. Shell’s offerings are improved and cross-sectoral growth is made possible by Raj Petro’s varied portfolio, which includes white oils, petroleum jelly, and specialty goods.
