Castrol Ch 165t4n

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CHAPTER CHAPTER––II

1. INTRODUCTION Marketing: The customer is king. And he is now the epicenter of all messaging activity. As our man gets more sophisticated and multifaceted, markets are doing anything they can to peek into his mind set and psychoanalyse what really drives his dichotomous purchase behavior. As aforesaid consumer is a king the companies lifeblood will be the marketing. Because if marketing is not properly analysed and used as ment. The customer may not be satisfied and turn his head towards the good marketed product and company for their wants. So marketing not only helps the company to sell the product but also shows the ways to the company for effective ment, awareness of the product and diverts the customers motive towards their product therefore marketing plays an dominant role in the business enterprise. Therefore a good marketing strategy will a profitable for the company and gives all the opportunities to achieve the predetermined goals of the firm without much expense and with concise time. India with an area covering over three million square kilometers, encomes a ‘Buying Public’ of over 250 millions, on the one hand, the ‘Buying Public’ represents a market with a high growth potential and low product penetration on the other hand, the Indian market is characterised by diverse cultures, customer aspirations, purchasing sensitivity and modes of moving products to consumers. These constitute towards making India a marketing paradise, as well as a night more.

BBM, Mountain View College of Business Management Science, Ckm.

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This is a challenge faced by all marketing organisations, and particularly, new entrants to India. But actually it will be a very good opportunity for new entrants for marketing in India.

Strategic marketing and marketing planning. : Strategic marketing is the process of analysing opportunities, choosing objectives, developing strategies, formulating plans and carrying out implementation and control. It is an applied concept of strategic management that is concerned with the over all management of the corporation to help achieving the corporate objectives. Corporate objectives can only be achieved through achieving the marketing objectives in turn marketing objectives should reflect and facilitate to reach the overall objectives of the concern. Strategic marketing focus on the step to be taken to develop effective marketing actions and plans to achieve the long term goals of the company in general and marketing in particular. Development of any strategy involves an analysis of the environment and the external organization so as to match between the strength and weakness of the firm with the opportunities and threats in the environment. An effective strategy is one that integrates all the action plans of the company to connect the company with its environment strategic marketing involves following Steps. Analysis

Marketing opportunities

Planning

Company objectives

Marketing strategy

Control

Marketing plan

Plan implementation

Controlling


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Project Report The first step in the strategic marketing process is to analyze the marketing opportunities. Environment is free of the opportunities but the company should select on opportunity that suits its strength and where is has a competitive advantage, opportunities are the unsatisfied needs of the market, a company cannot satisfy are these needs therefore it should seen the internal and external to define a comprehensive objective in the light of the overall corporate objective.

Marketing Mix:The whole marketing process is coined by two sets of factors. They are: Controllable and Uncontrollable factors. Controllable factors like men, material, machinery, management are within the hold of an organisation. A firm has to shape properly only the controllable factors to have successive and effective marketing. Usually the 4 controllable factors, that is product, price, promotion and place are mixed, blended are combined in a marketing plan or program. The mixing, blending are combination of the 4 controllable elements into a marketing plan or program is called the ‘Marketing Mix’.

Elements of Marketing Mix: Product: Product is the soul of every marketing activities. Basically marketing is the process of identifying consumer needs and wants translating them into goods and services and delivering them to the customers as and when they like. The product should have the characteristics of good shape, good design, good packaging, good brand name and suitable product range. Ex: Castrol Engine Oil. Price: Price of a product is the amount for which a product can be exchanged. In other words it is the money value of the product, pricing means the fixation of the price of the product. BBM, Mountain View College of Business Management Science, Ckm.

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While fixing a price to the product a marketer has to consider the following factors viz., 1) A cost of the product. 2) A nature of sales – cash or credit sale The nature of demand – seasonal or regular. The nature of consumer quality or quantity oriented. The degree of competition. 3)Promotion: Promotion means communication with the consumer to pursuit them to buy the product.

Promotion includes the various activities which are intended to inform the

consumer about the availability of a product i.e., creation of awareness, promotion included advertising, publicity, personal selling and other sales promotional activities. Place of Distribution: Place of distribution is concerned with making available the goods to the consumers at their own places. The physical distribution of a product covers the various channels of distribution like the whole sellers, retailers, agents, middlemen etc., and the other means of distribution like transportation ware housing, insurance etc., Consumer Behaviour: The adage “ consumer is king” is truly an important fact of modern day marketing. Unless the ‘king’ is satisfied and pampered to the extreme, there is no knowing what we will do. This change of attitude is something new to the Indian consumer, who was told to take it or leave it till other day. He had few choices and then it all changed. The economy was thrown open and the markets liberalized. Suddenly there were competing products in the markets, beckoning for ‘king’ consumers attention. He found himself being moved by the competitors.


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Project Report Yet, few of those competitors have an insight into this consumers mindset. They actually knew very little, if at all of his preferences.

Consumer behaviors is the control figure of all marketing activities. The ultimate object of marketing strategy is to provide marketing mix to bring about desired response from the customers. Therefore the study of consumer or buyer behaviour is the basis for marketing plans and policies. The mind decides and body acts but what enters to the buyers mind is difficult to understand. His mind is block box wherein several factors indulgences operates to decide his buying pattern with regard to understand fully the working of buyers mind and diverse suitable strategies to create negative or unfavorable orientation in the mind of customers. The one and only book written by professor Shyam Babu Vyas, on ‘marketing and consumer behaviour’ Basic concepts. An Indian author and a consultant of marketing and management high lighting the Indian consumer behaviour. As is well known, in the current Indian markets, marketing professionals are facing an uphill task in selling their wares. Among the different areas blamed are productions, technological and financial bottlenecks. However more than all these is the lack of understanding of consumer behaviour at all levels of marketing management.

1.2 Introduction of the study: In India, Castrol, the largest manufacturer of Engine Oil in the country, has set up a research center, which among other things, carries out basic research on this commodity. Approximately Crore is spent annually to establish that Engine Oil.


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1.3 Statement of the problem: Every work is Goal oriented and otherwise a work is not goal oriented there is no meaning in it. This work or the project is goal oriented and expected to get some valuable information about the product, we can get the valuable information through the respondents only. But even through some predetermined goals are expected. These predetermined goals can be summarized as, to know the consumer attitude towards the Castrol Engine Oil. Awareness and buyers prospective towards the product. Evaluating the marketing strategy or sales plan and at the end to know consumers buying motives and preferences. The above predetermined goals are the basic needs of a project and product. The work will be beneficial if the above needs are fulfilled with accurate and valuable information.

1.4 Objectives of the study: Every task done has a objective and the present study has no exception relating to objectives. The various objectives of the study have been illustrated as follows:  To know the consumers attitude towards Castrol Engine Oil.  To Study the present Brand equity in consumers.  To know respondent awareness towards Castrol .  To know the consumers attitude towards the brands.  To find out prospective buyers to Castrol Engine Oil.  To evaluate the marketing strategy or sales.  To know consumer buying motives and preferences.  To get an idea about the financial strength and weakness of company and competitors simultaneously. BBM, Mountain View College of Business Management Science, Ckm.

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1.5

Scope of the study: The scope of the study, that is, the boundary of the study is restricted to the study

of consumer behaviors towards Castrol, in Chickmagalur city only. For the purpose of study, Chikmagalur city has been selected. It is developing economically and educationally rather than developed fairly. It has an population around one and half lakh. The working people been scattered as follows. 20% of total population depends upon agriculture. 40% of the total population depends upon business. Rest of the people are coming under salary class. This study covers the s of Castrol Engine Oil and some strictly other competitive brands. This study has given also an opportunity to cover survey on dealer of Castrol and other competitive brands which are prevailing in Chickmagalur city presently. As the survey has been conducted at dealer shop it will be a great helpful to the financial manager at the time of planning and thereby knowing sales forecast for the product. It will also be helpful to students of management Studies. This scope of project is also to prepare and submit a detailed and comprehensive report. The contents of this report furnish all the details regarding history, marketing, buying motives, objectives, methodology adopted findings, commendations and conclusions.

1.6 Methodology of Study: Two methods are adopted to collect the necessary and valuable data for the project report namely. 

Primary



Secondary.


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Primary data: It has been largely obtained through interviews with sales representative of the Brooke bond red label which produced the below said.  Sales of the product.  Demand of the product.  Annual turnover product.  Market share product  Channels share product Interview with deals of Brooke Bond in Chikmagalur City. This was made to get answers for the following. 

Agency History.



Marketing mix strategy.



Agency relations



Annual turnover in Chikmagalur city.

Interview with consumer:To know the consumer buying behaviour towards the product company, a questionnaire, was prepared and distributed among different classes of people with differential age, income etc.,  The factors effecting consumer to buy Castrol.  Opinion about the product.  Effectiveness of ment. b) Secondary data: Date was also been used for the purpose of the report. The main sources are  Internet.  Newspaper & Magazines  Company’s Annual report.  Text Books.


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1.7 Limitations of the Study: The study has certain limitations under which it was carried out. As these limitations are unavailable it was decided to carryout the study inspire of all these limitations. Some of the limitations found in the study are as follows: Time constraint: The time period for conducting survey and getting information was so limited that required and efficient information have not been soughout perfectly. Maximum Reach: As the time proven to be very less. Only 50 respondents are taken into for the survey. It is too less to conduct a survey in Chickmagalur city. Still having no other alternatives. We has to conduct survey with the limited respondents only. Less involvement: During the survey some respondents were hesitant, some of them were not very serious and some gave biosed answers. Some confidential matters were hide by the company. Personnel which had adverse effect. Some response towards the respondents, age, education, occupation and income are not very accurate.


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CHAPTER CHAPTER––IIII

2. Castrol Introduction Castrol is a brand of industrial and automotive lubricants which is applied to a large range of oils, greases and similar products for most lubrication applications. The Castrol brand is part of the BP Group of companies, but has retained its separate identity. Castrol can provide a complete range of solutions using our knowledge and expertise of your industry IT'S MORE THAN JUST OIL. IT'S LIQUID ENGINEERING. Liquid engineering is Castrol’s unique ability, earned over decades. Its how Castrol produces amazing characteristics into an inert liquid oil, for the people who are ionate about their machine. Its how Castrol makes it more than just oil. Talk about leading edge technology in lubricants, and Castrol India emerges as an undisputed leader. It is the second largest lubricant company in India with a market share of over 20 %. Life blood of vehicles of all shapes and sizes, Castrol is the power that keeps India’s wheels in motion. Castrol India is the only lubricant company to have been an embedded part of India’s economic advancement for over 85 years All about engine oil All mechanical devices need lubrication to prevent over-heating and damage. This is because when any two solid surfaces move in with each other, the friction that is created generates heat and causes wear. A high quality engine oil, such as that produced by Castrol, will lubricate, protect, cool, clean and seal your engine.


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Engine oil : 

Reduces friction and wear, leading to efficient engine operation and long life



Removes heat from the engine to prevent it from overheating



Prevents deposits and corrosion, and so keep the engine clean



Disperses soot and sludge



Contributes to energy savings and clean combustion, helping to safeguard the environment

Castrol Operate

INDUSTRIAL LUBRICANTS & SERVICES OPERATES GLOBALLY WITH FOCUS ON CUSTOMERS' LOCAL NEEDS. A team of 1400 in over 50 countries Castrol world class products and services backed up by a network of sales, engineering and research and manufacturing operations in more than fifty countries, can help you to increase the productivity of your manufacturing processes. By focusing on our customers' local needs we can deliver a quick and effective response to your specific needs, while making full use of the knowledge and of a truly global infrastructure. With Castrol technological expertise and in-depth experience spanning every continent, we are well equipped to meet the diverse needs of customers right around the world. Whether your needs are global, local or focused at a single site, we offer you the best combination of products and services and the certainty that you’re following best practice.


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Castrol History

The success of our company owes much to the original philosophy of Charles Wakefield On 19th march 1899, Charles 'cheers' Wakefield set up an oil company in England. Ten years later, he produced a new lubricant that would revolutionise transport in the first half of the twentieth century. He called the new oil castrol. And so a name synonymous with quality, high performance and leading edge technology in lubrication, was born. The success of our company owes much to the original philosophy of Charles Wakefield. He drew on the help and encouragement of his customers in developing his new Castrol Oils because he had the foresight to see that working in partnership was the best way to achieve success for both parties. This rationale is as relevant to us today as it was then. Charles Wakefield played a major role in the rapidly developing transport industry, placing his faith in the potential of the internal combustion engine as the power source of the future. Working hand in hand with pioneering aviators and motorists of the day as aircraft, the motorcycle and the motorcar were emerging, he aimed to create the highest quality engine oils - and then to improve them. In doing so, he contributed to exciting record achievements. It was natural that Castrol was the chosen oil for breaking world speed and endurance records, on land, on sea and in the air. The Land Speed Record alone has been broken an amazing 21 times by cars using Castrol lubricants.


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Castrol products were tested and proved at the very limits of endurance…a technique we continue to this day. Many of our lubricants that started out as competition grades have become available to the everyday motorist, allowing millions of people worldwide to share in the benefits of race-proven technology. Our founder was also a pioneer in marketing - before marketing had even been invented. His strategy of advertising record-breaking and sporting feats achieved by pacesetting Castrol s was pure original thinking, and certainly put Castrol 'on the map' in England and around the world. Our of international teams in many areas of motorsport continues to be a key part of our promotional activity in the new century. With more than one hundred years of experience in satisfying our customers' needs, we remain as committed today to providing the most technically advanced lubricants and services as was Charles Cheers Wakefield when he founded our company.

Timeline 1899 - 1909 In March 1899, Charles ‘Cheers’ Wakefield founded CC Wakefield & Co Ltd, later to become Castrol. The Wakefield Lubricator, patented in the 1890’s for lubricating the axlebox of steam locomotives, was invented. It is still in use today. The Wakefield Motor Oil ‘Castrol brand’ was ed in 1909.

The 1920’s Castrol ‘R’ helps flight pioneers Alcock and Brown for their first non-stop flight across the Atlantic. In 1925, M. Campbell sets a new World Land Speed record. W. Handley becomes the first rider to win two Isle of Man TT races in one week. Bentley win Le Mans in 1928 at an average speed of 69 mph. BBM, Mountain View College of Business Management Science, Ckm.

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Early 1930’s The Wakefield Trophy award for World Land Speed Record holders, is commissioned by Charles Wakefield. Amy Johnson is the first woman to fly solo from England to Australia in 1930. “Castrol Andy” and his mobile unit teams. Detergent-based ‘Patent Castrol’ for cleaner engines appears in 1935.

1951 – 1960 Geoff Duke pictured at the Belgium GP wins the 500cc World Championship for Norton in 1951. 2 years later, the first semi-synthetic racing motor oil, Castrol R20, is developed in partnership with Mercedes Benz. The Sixties The luxury liner Queen Elizabeth II is launched in 1967and Castrol GTX, the first multigrade oil with a 20W/50 viscosity rating, in 1968. It later becomes the most famous motor oil of all times. 16 of the 23 finishers of the 1970 London to Mexico rally are lubricated by Castrol. 1978 – 1983 Bjorn Waldegard wins the Swedish Rally and the World Rally Drivers Championship the following year. 1983 sees Nelson Piquet (Brabham BMW) winning the F1 Drivers Championship, Freddie Spencer (Honda) the 500cc World Title and Richard Noble setting a new World Land Speed Record (633 mph) in Thrust II.


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The early Nineties Like 5 years before, Jaguar complete the double by winning Le Mans and Daytona 24 Hour races in 1993. Wayne Rainey wins his third World title on a Yamaha YZR500. The Toyota Castrol Team with Juha Kankkunen win both the Drivers’ and the Manufacturers’ titles in 1994. 1996 & 1997 G. Capellini is Formula One Powerboat World Champion for the fourth time in a row in 1996. In 1997, Andy Green in the Thrust SSC sets a new World Land Speed Record with 763 mph (1227 kph), faster than sound. Jacques Villeneuve wins the F1 Drivers Championship with Williams top of the Constructors. 1999 & into the 21st Century Castrol celebrates 100 years. The new century sees C. Edwards winning the World Superbike Championship on a Honda VTR1000 SP-1. In 2001, G. Capellini becomes a speedboating legend winning his sixth title. Teams using Castrol win 5 World Championships, including a tenth title for drag racer J. Force.


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Evolution of our logo

1968 1917

1929

1946

1999

2001

1958


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Castrol India The history of Castrol in India dates back to 1910 when certain automotive lubricants from C C Wakefield & company made an entry in the Indian market. In 1919, C C Wakefield & Company set up its first overseas branch office in India and commenced operations as a trading unit. Today, Castrol India limited is the second largest player in the Indian lubricant industry and is the market leader in the retail automotive lubricant segment. Castrol India is part of the BP group worldwide. Castrol India Limited is a Public Limited Company with 70.92% of the equity held by Castrol Limited UK (part of BP Group). In 2003 the company's turnover was Rs.1360.51 crores and Profit After Tax was Rs. 137.38 crores. From a minor oil company, with a share of about 6% in 1991, Castrol India has grown to become the second largest lubricant company in India with a market share of around 22%. Castrol India manufactures and markets a range of automotive and industrial lubricants. It markets its automotive lubricants under two brands - Castrol and BP. The company has leadership positions in most of the segments in which it operates including enger car engine oils, 2-stroke and 4-stroke oils and multigrade diesel engine oils. Castrol India has the largest manufacturing and marketing network amongst the lubricant companies in India. The company has 5 manufacturing Plants across the country, including a state-of-the-art plant in Silvassa. The company reaches its consumers through a distribution network of 270 distributors, servicing over 70,000.retail outlets. Castrol India has clearly demonstrated its commitment to Indian consumers for over 80 years, by offering its international range of high performance products backed by the highest level of customer service. The company has managed to gain sustainable competitive advantage through: 

Distinctiveness driven by continuous innovation in all areas of business



Winning culture and a desire to excel Strong meaningful relationships with all stakeholders


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Local Partners IN

ADDITION

TO

OUR

GLOBAL

PARTNERSHIPS, WE HAVE AGREEMENTS WITH LEADING AUTOMOTIVE MANUFACTURERS, AT A COUNTRY OR REGIONAL LEVEL. Original Equipment Manufacturers (OEMs) and Equipment manufacturing industries play a strategic role in our business. We have a long and successful history of partnerships with leading OEMs across all vehicle categories. With strong brands, superior technology and width and depth of distribution, Castrol is an ideal partner for progressive OEMs seeking to offer their consumers the best products and services TATA Cummins Limited Castrol India Limited has a strategic partnership with Tata Cummins limited, the largest engine manufacturer in India for an exclusive supply of Castrol manufactured and TCL approved engine oil as factory fill. Taking forward the partnership both the companies plan to and undertake t-marketing activities aimed at common customers. They will partner in the field of intensive customer care activities, t marketing and working together in Research and product development for newer engines. ITC – The Chaupal Sagar Stores The ITC’s E Chaupal model for agri produce procurement has revolutionized the procurement process in some key states. Taking forward the same success they have decided to convert 100 such Hubs into Retail Stores cum procurement centers. The products being sold from this store ranges from apparels, white goods, footwear, agri inputs, FMCG goods etc. Castrol India will be ITC’s partner in supplying the lubricant requirement of the retail shelves.


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Godrej Adhaar Godrej Agrovet limited is in the process of setting up rural departmental stores aimed at providing complete solutions to farmers ranging from Agri inputs to FMCG good to white goods etc. They have already set up more than 12 stores across the country and have plans to set up more than 500 stores in the coming years. Presently Castrol is the sole lubricant supplier to this channel. Each store has more than 10000 unique footfalls in a year and has more than 2500 loyal . Apart from sales and enhanced rural distribution width, these Adhaar outlets also provide us with a platform for consumer communication & brand activation in media dark areas. Reliance India Limited Castrol India has agreements with Reliance for supplies to their Company owned Company operated and franchised fuel forecourts. Our partnership in this channel has significantly increased our presence and visibility along the highways. This will also enable us to do a number of t marketing activities aiming at similar objectives. Essar Oil Limited Essar Oil Limited, and Castrol India Limited have an agreement for sale of Castrol lubricants through Essar Oil Fuel outlets throughout the country.Essar pumps have s strong brand equity among fuel forecourts and are fondly known as "Lal Pump". This agreement will give the customers, access to Castrol lubricants at Essar outlets with the promise of reliability, right price and good customer service. Essar Retail outlets are serviced by authorized Castrol distributors only. It is especially beneficial to scooter owners, who hitherto did not have access to Castrol lubricants at petrol forecourts. This tie up is uses the promotion synergy of both companies, through highway promotion vans, mechanic and fleet owners' meets to the mutual benefit of both companies. Castrol also has alliances with other major manufacturers like Telcon, L&T John Deere, L&T Komatsu Limited, Escorts Limited, Ford India Limited, LML Limited, L&T Case Limited and Bajaj Auto Limited BBM, Mountain View College of Business Management Science, Ckm.

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Global Partners Partnering with leading manufacturers - in the motor industry or other sectors where we operate - is a vital and integral part of our business strategy. The aim of such partnerships is to make sure that both the organisations

benefit

from

improved

global

performance and overall cost efficiencies. Ultimately, this benefits our customers too. To facilitate this, we have tieups with BMW, Jaguar, Volvo, Land Rover and Komatsu. Castrol is the main lubricants brand recommended by BMW for their 3,500-plus dealerships worldwide. In addition, we source and market BMW-branded lubricants wherever appropriate. The two companies also collaborate in after-sales service, to enhance dealer service efficiency. From the customer's point of view, our agreement with BMW delivers even better customer care in after-sales activities. Castrol partners the BMW WilliamsF1 team as well as other BMW motorsports, such as sports cars, touring cars and, on two wheels, BMW motorcycle racing in events including the famous Dakar Rally. We provide technical assistance on the race track and in test programmes, and supply all lubricants to the BMW WilliamsF1 team. We have also been appointed as the worldwide strategic lubricants partner for Jaguar Cars Ltd, Land Rover, Volvo Car Corporation, and Aston Martin. Castrol partnerships with leading manufacturers extend outside the automotive industry. We also have a major global business association with the Komatsu Group, one of the world's leading construction equipment manufacturers.


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History In February 1899, Charles Cheers Wakefield took what was perhaps the greatest risk of his working life: he resigned from the Vacuum Oil Company over a disagreement with the management regarding Vacuum Oil's foray into the railroad lubricants sector, and set himself up as competition. The firm he left behind would go on to become Mobil Oil. Wakefield rented three small rooms on the third floor of 27 Cannon Street in the heart of London, and it was there, on Thursday 9 March 1899, that the firm of C.C.Wakefield & Co opened its doors for the first time. In 1909, the company began production of a new automotive lubricant named "Castrol" (a contraction of castor oil, from which it was made). The company developed specific oil applications for various applications of the new internal combustion engine, including cars, motorcycles, and aircraft. The original 3 grades of oil being CW for cars, C for motorcycles and R for aircraft and racing engines, the castor oil being responsible for the noticable exhaust odor of early aircraft rotary engines. In 1966, Castrol was acquired by British oil company Burmah, which was renamed Burmah-Castrol. In 2000, Burmah-Castrol was acquired by the then BP Amoco plc (now renamed BP plc). Castrol branded lubricants continue to be sold around the world and are, in many countries, market leaders. Products Castrol offers lubricants for virtually all domestic, commercial and industrial applications. Some of the bigger, current product brands offered by Castrol include: -

for enger cars: Edge, Magnatec, Syntec, GTX - for motorcycles: Power1, powerrs, Act>evo - for heavy duty vehicles: Elixion, Enduron, Hypuron, Tection, CRB, Agri - for ships: Cyltech, TLX Plus - for industrial applications: Hyspin (hydraulic), Aircol (compressors), Alpha (industrial gears)


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More specialist, less well-known or discontinued brands of note for cars include XL, GTD, Formula RS, Synt and SLX. For motorcycles, they include TT, TTS, GP, GPS and Go!. Castrol A747 is considered by many[citation needed] to be the premier oil for 2stroke racing motorcycles. It has a distinctive smell that can be recognized instantly and is often nostalgic. This characteristic smell derives from the castor oil base lubricant. Castrol produce oils for the whole arena of automotive lubrication, including motorcycle 2-stroke and 4-stroke engines, car petrol and diesel engines, an extensive range of manual and automatic transmission fluids, chain lubricants and waxes, coolants, suspension fluids, brake fluids, greases, cleaners and maintenance products.

Castrol also produce

products for agricultural machinery, plant, general industry and marine engineering uses. Castrol products were voted best/most trusted products in Switzerland. Sponsorship The most prevalent display of the Castrol brand is to be found in sponsorship of varying motorsports (mainly as a "technical partner"), currently in the World Rally Championship, MotoGP, World Superbikes and World Supersports. Castrol have previously been formally involved in Formula 1, World Touring Cars, British Superbikes, British Rallying, DTM, V8 Supercars, Dakar Rally, Drag racing, Sidecar racing - and more. In North America, Castrol has been an active sponsor of NHRA drag racing, especially with John Force's funny car under the GTX brand since 1987. The company has also sponsored the Brewco Motorsports #27 car in the NASCAR Busch Series, driven by Casey Atwood from 1999 to 2000. Castrol is one of the most popular oils used in the Australian Touring Car/V8 Supercar series with Castrol as one of Ford Performance Racing's title sponsors. Castrol has been sponsoring Perkins Engineering for many years, most of them as a title sponsor until


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Project Report 2006. Castrol has also have hold the rank of title sponsor with Team Bray, owned by Australian drag car legend, Victor Bray for 17 years.

For the 2007 Formula 1 World Championship, Castrol also sponsor the Williams F1 Toyota team. Castrol sponsored Swindon Town Football Club from 1995 to 1997. In the first season of this two-year deal, Swindon were Division Two champions. Castrol has recently began to sponsor a popular Nintendo podcast called Lithcast. Another interesting sponsorship by Castrol is of the UEFA Euro 2008 football tournaments. Speed records Historically, Castrol has been a prolific sponsor of World Land Speed Records, with 21 "titles" to their credit, and their rightful claim of the "World's 'Fastest' Oil", with their current unbroken record of a supersonic speed of 763.035 mph (1,228 km/h) set by RAF fighter pilot Sqn Ldr (then) Andy Green, in the Richard Noble 'brainchild' ThrustSSC. This occurred in the USA at the Black Rock Desert in Nevada, on 15 October 1997. Advertising Castrol products are still marketed under the red, white and green colour scheme that dates from the launch of Castrol motor oil in 1909. ments for Castrol oil historically featured the slogan "Castrol - liquid engineering"; this was more recently refreshed and reintroduced as "It's more than just oil. It's liquid engineering." In 2008, this slogan is also being featured as the name for a new rewards club called the "Castrol Liquid Engineering Crew" in which get the chance to win prizes. For many years the opening notes of the second Nachtmusik movement of Mahler's Seventh Symphony were used as the signature theme of Castrol TV commercials.


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CHAPTER CHAPTER––III III

3. Product Profile 7 Critical Engine Factors WE LOVE MACHINES Castrol understand that your car is absolutely unique. This is why you'll need an oil that has been designed with you in mind. Castrol EDGE has been specifically formulated to perform across the seven Critical Engine Factors. PROTECTION AGAINST WEAR Your car engine is the last thing you’ll want to be worrying about when you’re on the road. Specially selected additives in Castrol EDGE manage the damaging effects of the engine environment, controlling dirt, neutralizing acid and fighting oxidation. This keeps the metal in your engine how it should be, solid and strong. LONG LASTING OIL When Castrol EDGE is in your engine, the oil stays in prime condition – just the way it should be, only for longer. This is how Castrol EDGE stretches to go the distance for your machine, prolonging engine life. PERFORMS UNDER EXTREME CONDITIONS Your car goes wherever you do, that's why it needs to withstand extreme weather conditions. Castrol EDGE sees to that.


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Project Report In cold weather, it helps your engine warm up and start easily. Under scorching conditions, it resists thinning, thus avoiding trouble from the engine. These translate in to better power and start-up protection

CLEANER ENGINE Car engines that are clean inside last longer and run better. Catalysts and diesel exhaust filters also work better when they’re clean. This is why Castrol EDGE’s unique mix of detergents and dispersants keeps engine parts cleaner and maintains your machine to its maximum. POWER PROTECTION You run your engine hard and for that reason, Castrol EDGE has been designed to survive against the performance stresses you place on your car. It fights power-robbing oil deterioration, giving your engine that extra protection it needs when using full power. FUEL ECONOMY When you choose a better oil, you will subsequently use less fuel. The Castrol EDGE range contains oils that have been specially designed to give fuel economy savings while protecting the engine and keeping it running efficiently THERMAL CONTROL Castrol EDGE oils run cooler. Castrol EDGE reduces stress on the engine and increases useful oil life, creating significantly less oxidation and deposits within the engine. We let your machine concentrate on what it does best – performing at its peak.


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Castrol Magnatec KEEP YOUR CAR AT ITS PEAK Make an intelligent move. Use Castrol Magnatec. 

Uses Synthetic Technology



Recommended in use for all types of high performance luxury cars (Petrol and Diesel)



Best – in – class API SM Formulation



Viscosity: SAE 10W-40

How do the Intelligent Molecules work? 

SEEK: Magnatec's Intelligent Molecules seek out and bond to critical engine parts, providing active and continuous protection against engine wear where it's needed most. Not only do the Intelligent Molecules work from the start, but they also protect throughout the entire journey under all driving styles, conditions and temperatures.



BOND: From the moment you turn the key, Magnatec's Intelligent Molecules are ready and waiting with an active layer of protection. As your engine heats up, the Intelligent Molecules become more active strengthening the protective layer to safeguard the components that need it the most during stop-start driving.



PROTECT: As your engine gets hotter, other Intelligent Molecules are activated, bonding to vulnerable areas and forming an extra layer of active and continuous protection for driving on the open road.


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Project Report And when your journey is over, Magnatec’s Intelligent Molecules continue working, remaining as a protective layer, when your engine is turned off, ready for the next time you turn the key.

GTX TRUSTED ENGINE PROTECTION Application Recommended for use in all types of petrol cars Consumer Benefits   

Trusted engine protection Keeps the petrol engine running cool Maintains the engine clean and sludge free

Technology Engineered to provide superior wear protection Viscosity

SAE 20W-50

Specifications API SL Packs Available - 210, 50, 5, 3, 1Ltr, 500ml GTD APPROVED BY TATA MOTORS FOR USE IN ALL TATA DIESEL CARS AND UTILITY VEHICLES Application Recommended for use in all Tata diesel cars and utility vehicles Consumer Benefits   

Exceptional engine protection Trouble free driving Low engine maintenance

Technology Recommended by Tata Motors – enger car division


27

Project Report Viscosity SAE 15W-40 Specifications API CF - 4 Packs Available - 210, 4, 1Ltr

Motorcycles Trizone Technology Over the past 4-5 years the motorcycle technology has seen a seen a transition from 2-stroke technology to 4-stroke technology. This has been led by advances in engine design and environmental concerns, with 4- stroke motorcycles being more fuel efficient and environment friendly. For these reasons 4-stroke technology is powering motorcycles and scooters into the future. Modern 4 stroke motorcycle engines are a miracle of technology with their compact design and engineering. These engines typically operate at high speeds and generate a lot of heat which lead to wear and tear of the engine. The ideal motorcycle lubricant has to be designed very carefully to operate at optimum levels in three critical parts – From the engine zone, need to combat the huge pressures of heat, compression and combustion deposits. From the clutch zone, the need for the optimum balance between slip and grip. And from the gearbox zone, the need to reduce wear and noise. To get the best performance from a motorcycle it is essential for these three critical zones to perform in a synchronized manner. Castrol has always been at the cutting edge of lubricants technology for automobiles with world class products like Activ and Power1 for motorcycles. Castrol has now raised the bar on motorcycle lubricants technology by introducing Trizone Technology across it’s range of 4 stroke motorcycle oils. Trizone Technology provides the ultimate combined protection to the three critical parts of the engine – the engine, the clutch and gear. Castrol Trizone BBM, Mountain View College of Business Management Science, Ckm.

28

Project Report Technology represents the state-of-the-art in motorcycle lubricant technology to help motorcyclists get the most out of their vehicles. Trizone technology has been developed by drawing on Castrol’s unique heritage, its vast experience in countries around the globe and its experience gained from working with several winning racing teams across the years. It harnesses Castrol’s cutting edge know how in motorcycle engine oil technology, honed at the leading edge of speed and endurance

4 Stroke Power 1 INCREASED POWER Application Recommended for use in all 4-stroke high performance motorcycles of Bajaj, Hero Honda, Honda, Suzuki, TVS and all other manufacturers Consumer Benefits Increases Engine Power Reduces Engine Wear Enhances Engine Protection

  

Technology  Trizone Technology  Power Release Formula Specifications  

Part Synthetic Meets API SL valve train wear performance and exceeds the requirements of JASOMa2 standards.

Packs Available - 1Ltr

Activ CONTINUOUS PROTECTION


29

Project Report Application Recommended for use in all 4-stroke motorcycles of Bajaj, Hero Honda, Honda Suzuki, TVS and all other manufacturers

Consumer Benefits   

Continuous Protection Reduced Engine Wear Longer Engine Life

Technology  Trizone Technology  APM Technology Viscometrics  SAE 20W-40 Specifications Meets API SL valve train wear performance and exceeds the requirements of JASO MA2 standards Packs Available - 210 ltr, 50 ltr, 20 ltr, 1Ltr, 900 ml

Two Wheeler Oil TROUBLE FREE RIDE Application Recommended for use in all 4-stroke motorcycles and scooters. Consumer Benefits Trouble Free ride Viscometrics SAE 20W-40 Specifications Meets the requirements of API SG and JASO MA standards BBM, Mountain View College of Business Management Science, Ckm.

30

Project Report Packs Available - 210 Ltr, 50 1Ltr, 1 Ltr, 900 ml

2-Stroke Power 1 JettX INCREASED PICK UP Application Recommended for use in all high performance 2-stroke motorcycles Consumer Benefits   

Increased pickup End Catalyst life Low Exhaust Smoke

Technology Enhanced Catalyst Protection Specifications Exceeds the requirements of JASO FC and API TC Packs Available - 210, 1Ltr, 500 ml

Power 1 Super TT INCREASED POWER Application Recommended for use in 2-stroke motorcycles Consumer Benefits  

Increased power Faster pickup


31



Project Report Low Exhaust Smoke

Technology Clean Burn Formula Specifications Exceeds the requirements of JASO FC and API TC Standards Packs Available - 210, 4, 1Ltr, 500 ml

2T TROUBLEFREE RIDE Application Recommended for use in 2-stroke motorcycles and scooters Consumer Benefits   

Trouble free ride Instant start Low Exhaust Smoke

Technology Carbon Buster Formula Specifications Exceeds the requirements of JASO FC and API TC Packs Available - 500 ml, 40 ml

Commercial Vehicles Castrol offers range a of products for regular and turbo charged trucks Castrol's DEO range includes Castrol CRB Range, RX range and Diesel range of products Castrol is trucker's trusted companion for diesel engine oils (DEO) Castrol DEO products are engineered to provide superior performance in diesel engines even under most severe conditions Diesel Engine Oils CRB Plus + BBM, Mountain View College of Business Management Science, Ckm.

32

Project Report CRB Turbo RX Super Plus RX Super Max CRB Prima CRB Prima Plus RX Super Gas RX Deusol Super Diesel Oil CRD 30 Xtra Diesel Oil CRD 40 Xtra

Commercial Vehicles Engine Oils Diesel Engine Oils

Diesel Oil Tractor CRB Plus +

RX Deusol Super

Diesel Oil Pumpset RX Super Plus

Diesel Oil CRD 30 Xtra

CRB Plus +

RX Super Max Diesel Oil CRD 40 Xtra


Diesel Oil CRD 30

33

Project Report

RX Super Gas

LONGER ENGINE LIFE Application Castrol CRB Plus is a multigrade diesel engine oil recommended for use in all naturally aspirated dies Consumer Benefits 

Excellent Start Up Protection



Engine Protection Under Stressful Conditions



Extreme temperature Protection



Excellent Protection against soot & related impurities

Technology Syntech 4 Formula to handle stresses of modern engines & keep engine newer for longer Viscosity SAE 20W-40 Specifications Exceeds the requirements of API CF4


34

Project Report Packs available - 210, 50, 20, 10, 7.5, 5, 1ltr & 500ml CRB Turbo LONGER ENGINE LIFE Application Castrol CRB Turbo is a mulitgrade diesel engine oil specially formulated for Turbocharged Diesel Engines. Castrol CRB Turbo with futuristic synthetic technology provides advanced engine protection

Consumer Benefits 

40% better wear protection



25% better engine cleaning



25% lower oil consumption



Long Drain Interval

Technology Syntech 4 Formula to handle stresses of modern engines & keep engine newer for longer Viscometrics SAE 15W-40 Specifications  

API CF - 4 / CG-4 / CH-4 IS 13656 :2002 TYPE EDL – 7

Packs Available - 210ltr, 50 ltr, 15 ltr, 10 ltr, 5 ltr, 2ltr, 1 ltr CRB Prima LONGER ENGINE LIFE Application Recommended by Mahindra & Mahindra for use in all models of their tractors except Arjun models BBM, Mountain View College of Business Management Science, Ckm.

35

Project Report Consumer Benefits   

Longer engine life Gives cleaner engine Better protection of power

Technology Perma Stick Molecules Viscosity SAE 20W-40 Specifications   

Exceeds the requirements of API CF4 Mack T7 IS 13656:2002 Type EDL – 3

Packs available - 210, 7.5, 5, 1 ltr

CRB Prima Plus LONGER ENGINE LIFE FOR NEW GENERATION TRACTORS Application Recommended by Mahindra & Mahindra for use in Arjun tractor models Consumer Benefits 

Longer engine Life for new generation tractors

Technology Perma Stick Molecules Viscosity SAE 15W-40 Specifications 

Exceeds the requirements of API CF4

Packs Available - 210, 7.5, 1 ltr


36

Project Report RX Super Plus PEAK POWER, SUPER CLEAN ENGINE Application Recommended for use in High performance, Euro III diesel engines fitted in trucks, buses, LCVs and MUVs Consumer Benefits   

Peak power, super clean engine Outstanding deposit control Excellent wear protection

Technology Advanced heavy duty diesel engine oil for Euro III engines Viscosity SAE 15W-40 Specifications  API CG-4/CH-4  MB-Approval 228.3  Cummins CES – 20071/20072  IS 13656: 2002 Type EDL – 7 Packs Available - 210, 50, 20, 5, 1Ltr RX Super Max EXCELLENT ENGINE POWER Application Recommended engine oil for Tata vehicles fitted with Cummins engines and Tata engines Consumer Benefits     

Optimum power in turbo charged engines Excellent protection to engine parts Low oil consumption Excellent valve train protection established through special Cummins Excavator Cycle Test


37

Project Report Technology  Recommended by Tata Motors and Tata  Cummins | VSF Formula Viscometrics SAE 15W-40 Specifications    

API CF-4 IS 13656: 2002 Volvo VDS MB-Approval 228.1 Recommended upto18,000 km drain interval

Packs available - 210 ltr, 50 ltr, 15 ltr, 8 ltr, 2.5 ltr, 1ltr

RX Super Gas EXCELLENT ENGINE POWER FOR GAS ENGINES Application Recommended for use in all gas engines (CNG / LPG) fitted in trucks, buses, LCVs, Cars and other vehicles. Consumer Benefits     

Excellent engine power for gas engines Good thermal protection Low oil consumption Excellent valve train protection Reduced maintenance costs

Technology  Recommended by Tata Motors and Cummins for gas engines  Valve Train Protection Formula Viscosity SAE 15W-40 Specifications  API CF  CES 200074

Packs available - 210, 15, 5, 1ltr BBM, Mountain View College of Business Management Science, Ckm.

38

Project Report RX Deusol Super HIGH PERFORMANCE DIESEL ENGINE OIL Application Recommended for use in naturally aspirated and turbo – charged engines fitted on Ashok Leyland Trucks, Cummins drilling rigs and Gensets Consumer Benefits    

High performance Excellent engine protection Low oil consumption Low wear of all critical engine components

Technology Wear Protection formula Viscosity SAE 20W-40 Specifications  

API CF - 4 IS 13656:2002 TYPE EDL - 4

Packs available - 210, 50, 20, 5, 1ltr Diesel Oil CRD 30 Xtra HIGH QUALITY OIL FOR BASIC DIESEL ENGINES Application Recommended for use in all types of naturally aspirated diesel engines Consumer Benefits 15% reduction in engine oil top-up Technology Quality monograde engine oil with jelly seal technology Viscosity SAE 30 Specifications API CF BBM, Mountain View College of Business Management Science, Ckm.

39

Project Report Packs available - 210, 50, 20, 5, 1 ltr Diesel Oil CRD 40 Xtra HIGH QUALITY OIL FOR BASIC DIESEL ENGINES Application Recommended for use in all types of naturally aspirated diesel engines Consumer Benefits 15% reduction in engine oil top-up Technology Quality monograde engine oil with jelly seal technology Viscosity SAE 40 Specifications API CF, IS 13656:2002 Type EDL -2 Packs available - 210, 50, 20, 7.5, 5, 1ltr Diesel Oil CRD 30 HIGH QUALITY OIL FOR BASIC DIESEL ENGINES Application Recommended for use in all types of naturally aspirated diesel engines Consumer Benefits High quality oil for basic diesel engines Viscosity SAE 30 Specifications API CF Packs Available - 210, 50, 20, 5, 1 Ltr Diesel Oil CRD 40 HIGH QUALITY OIL FOR BASIC DIESEL ENGINES Application Recommended for use in all types of naturally aspirated diesel engines Consumer Benefits High quality oil for basic diesel engines BBM, Mountain View College of Business Management Science, Ckm.

40

Project Report Viscosity SAE 40 Specifications API CF Packs available - 210, 50, 20, 5, 1ltr Diesel Oil Multigrade HIGH QUALITY OIL FOR BASIC DIESEL ENGINES Application Recommended for use in all types of naturally aspirated diesel engines

Consumer Benefits High quality multigrade engine oil for basic diesel engines Viscosity SAE 20W-40 Specifications API CF Packs available - 210, 5, 1ltr

Diesel Oil Tractor HIGH QUALITY ENGINE OIL FOR TRACTORS Application Recommended for use in all types of naturally aspirated diesel engines fitted in tractors Consumer Benefits High quality engine oil for tractors Viscosity SAE 25W-50 Specifications API CF Packs available - 210, 10, 7.5, 5, 1ltr Diesel Oil Pumpset HIGH QUALITY OIL FOR BASIC DIESEL ENGINES BBM, Mountain View College of Business Management Science, Ckm.

41

Project Report Application Recommended for use in agricultural diesel pumpsets and other small stationary diesel engines for industrial use. Consumer Benefits High quality monograde engine oil for basic diesel engines Viscosity SAE 40 Specifications Meets performance requirements of IS: 13656 Packs available - 3.5 ltr

Diesel Oil Pumpset HIGH QUALITY OIL FOR BASIC DIESEL ENGINES Application Recommended for use in agricultural diesel pumpsets and other small stationary diesel engines for industrial use. Consumer Benefits High quality monograde engine oil for basic diesel engines Viscosity SAE 40 Specifications Meets performance requirements of IS: 13656 Packs available - 3.5 ltr


42

Project Report

CHAPTER CHAPTER––IV IV

4. Financial Report Quarterly results in brief

(Rs crore) Sep ' 08 Jun ' 08 Mar ' 08 Dec ' 07 Sep ' 07

Sales

639.50

707.80

570.00

557.92

508.31

Operating profit

91.70

126.50

113.40

81.91

83.00

Interest

0.70

0.70

1.30

0.13

0.70

Gross profit

98.00

135.00

124.00

92.88

90.89

EPS (Rs)

4.82

6.70

6.03

4.59

4.39

Other income

7.00

9.20

11.90

11.10

8.59

Stock adjustment

-48.30 13.00

-34.90

12.99

-2.07

Raw material

388.90 327.80

291.50

252.80

234.34

Employee expenses

25.20

28.20

21.90

25.52

24.89

Excise

81.40

86.40

77.10

82.93

77.20

and selling expenses

-

35.30

19.90

27.76

-

Other expenses

100.60 90.60

81.10

74.01

90.95

Depreciation

6.10

6.80

6.20

5.89

5.14

Taxation

32.30

45.40

43.30

30.23

31.53

Net profit / loss

59.60

82.80

74.50

56.76

54.22

Quarterly results in details


43

Project Report Prior year adjustments

-

Equity capital

-

-1.70

-

-

123.60 123.60

123.64

123.64

123.64

Agg.of non-prom. shares (Lacs)

358.17 358.17

358.17

358.17

358.17

Agg.of non promotoholding (%)

28.97

28.97

28.97

28.97

28.97

OPM (%)

14.34

17.87

19.89

14.68

16.33

GPM (%)

15.16

18.83

21.31

16.32

17.58

NPM (%)

Balance sheet

(Rs crore) Dec ' 07 Dec ' 06 Dec ' 05 Dec ' 04 Dec ' 03

Equity share capital

123.64 123.64 123.64 123.64 123.64

Reserves & surplus

306.54 294.02 266.42 236.43 224.44

Loan funds Unsecured loans

2.79

2.79

2.79

3.72

4.20

Total

432.97 420.45 392.85 363.79 352.28

Uses of funds Fixed assets Gross block

249.04 246.88 248.75 249.79 246.99

Less : accumulated depreciation

130.73 121.94 116.25 104.68 79.58

Net block

118.31 124.94 132.50 145.11 167.41

Capital work-in-progress

14.95

4.74

5.83

Investments

20.58

42.52

108.14 128.91 84.79

Current assets, loans & advances

790.74 632.52 491.20 395.20 388.82

Less : current liabilities & provisions

511.61 384.27 344.82 310.09 292.34

Total net current assets

279.13 248.25 146.38 85.11

Total

432.97 420.45 392.85 363.79 352.28

Book value of unquoted investments Market value of quoted investments

4.66

3.60

96.48

20.28

42.20

107.84 128.59 84.46

0.30

0.30

0.31

0.32


0.35

44

Project Report Contingent liabilities

188.10 205.14 131.68 69.63

14.22

Number of equity sharesoutstanding (Lacs)

1236.40 1236.40 1236.40 1236.40 1236.40

Profit loss Dec ' 07

Dec ' 06

Dec ' 05

Dec ' 04

Dec ' 03

1,886.62

1,802.54

1,464.46

1,347.66

1,209.65

Material consumed

1,096.67

1,161.27

845.31

778.19

670.49

Manufacturing expenses

61.23

73.69

69.01

59.57

59.07

Personnel expenses

90.40

70.22

67.55

65.41

65.02

Selling expenses

203.56

215.57

201.20

174.90

150.03

strative expenses

104.13

60.82

68.18

55.27

54.03

Cost of sales

1,555.99

1,581.57

1,251.25

1,133.34

998.64

Operating profit

330.63

220.97

213.21

214.32

211.01

Other recurring income

33.85

14.81

14.78

11.71

7.73

Adjusted PBDIT

364.48

235.78

227.99

226.03

218.74

Financial expenses

3.79

4.11

3.01

2.87

2.57

Depreciation

20.78

18.01

18.93

24.88

14.31

Adjusted PBT

339.91

213.66

206.05

198.28

201.86

Tax charges

121.94

83.14

67.69

67.83

66.98

Income: Operating income Expenses

Adjusted PAT

217.97

130.52

138.36

130.45

134.88

Non recurring items

-0.07

18.58

4.58

-2.99

2.50

Reported net profit

218.43

154.49

146.81

127.46

137.38

Earnigs before appropriation

258.72

185.18

163.51

146.17

150.79

Equity dividend

173.10

111.28

102.01

102.01

102.01

Dividend tax

31.26

15.61

14.81

13.46

13.07

Retained earnings

54.36

58.29

46.69

30.70

35.71


45

Project Report

Capital structure (Rs crore) From Year

To Year

2007

2007

2006

2006

2005

2005

2004

2004

2003

2003

2002

2002

2001

2001

2000

2000

1998

1999

1994

1998

1993

1994

1992

1993

1991

1992

1990

1991

1988

1990

1986

1988

1985

1986

1983

1985

1981

1983

Class Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share

OfAuthorized Issued Capital Capital

Paid Up Paid UpPaid Up Shares Face Value Capital (Nos)

124.00

123.64

123640298 10

123.64

124.00

123.64

123640298 10

123.64

124.00

123.64

123640298 10

123.64

124.00

123.64

123640298 10

123.64

124.00

123.64

123640298 10

123.64

124.00

123.64

123640298 10

123.64

124.00

123.64

123640298 10

123.64

124.00

123.50

123503456 10

123.50

124.00

123.50

123503456 10

123.50

62.00

61.75

61751728 10

61.75

39.00

38.59

38594830 10

38.59

39.00

19.30

19297415 10

19.30

16.00

15.76

15759553 10

15.76

10.00

9.85

9849721

10

9.85

6.50

6.16

6156076

10

6.16

6.50

5.09

5087600

10

5.09

3.00

2.54

2543800

10

2.54

2.00

1.50

1500000

10

1.50

0.20

-

2

10


46

Project Report

Cash flow (Rs crore) Dec ' 07

Dec ' 06

Dec ' 05

Dec ' 04

Dec ' 03

Profit before tax

339.84

232.24

210.63

195.29

204.36

Net cashflow-operating activity

356.83

93.80

110.89

162.74

104.92

Net cash used in investing activity

13.14

75.99

19.48

-42.25

138.84

Netcash used in fin. activity

-141.28

-120.42

-120.21

-118.58

-233.58

Net inc/dec in cash and equivlnt

228.69

49.37

10.16

1.91

10.18

Cash and equivalnt begin of year

89.22

39.85

29.69

27.78

17.60

Cash and equivalnt end of year

317.91

89.22

39.85

29.69

27.78


47

Project Report

CHAPTER CHAPTER––VV

5. Board of Director Castrol Offshore Head Office Wakefield House, Pipers Way Swindon, SN3 1RE Tel: +44 (0)1793 453 224

Naveen Kshatriya Managing director

Castrol India LTD · 01124365025 · East Tower NBCC Place 5th Floor, Pragati Vihar, New Delhi


48

Project Report

CHAPTER CHAPTER–VI –VI

6. Social Responsibility Castrol Drive for Safety "CASTROL DRIVE FOR SAFETY “IN INDIA THERE IS A ROAD ACCIDENT EVERY 100 SECONDS. ONE PERSON DIES ON THE ROAD EVERY 7 MINUTES. OVER 1000 PEOPLE ARE INJURED EVERY 24 HOURS! NO WONDER THEN THAT INDIA S FOR THE SECOND LARGEST NUMBER OF ROAD ACCIDENTS IN THE WORLD. "

The Castrol Drive for Safety project "The Castrol Drive for Safety initiative is aimed at addressing the rising levels of concern on road safety violations and to make an effort to convert these concerns into positive behavioral changes. It is Castrol India’s effort to bring about change in the attitude and mindset of people. It involves propagating the message of road safety by working collaboratively with various authorities and other like-minded corporates / citizens. In 2003 the project was run as a pilot in Mumbai city and focused on car drivers. In 2004, the project is being extended to the capital city of Delhi. The Castrol Drive for Safety project aims to communicate various road safety messages but the key messages, especially in mass media, are around the use of seat belts and mobile phones. The messages are spread through mass media and on-ground activities. The on-ground activities aim to get the target audience involved in the project and to win their “hearts and minds”. The activities in 2003 included theatre performances / street plays, safe driving programme for college students and a ‘Policing your parents’ programme for school children. As part of the Safe Driving programme for college students, Castrol invited an international expert – Simo Lampinen of Finland, to share safe driving tips with the participants. BBM, Mountain View College of Business Management Science, Ckm.

49

Project Report Simo Lampinen is an ex world rally champion and runs a very successful advanced driving school. Under the ‘Policing your parents’ programme, over 20,000 school children were given road safety tips through a highly interesting an interactive programme. Quite clearly, a programme of this magnitude cannot be run by a single organization. It is also important to get the right partners – people and organizations interested in the cause. The Castrol drive for Safety project in Mumbai had the of various like-minded authorities and organizations. These included: 

The traffic police



The Mumbai Municipal Corporation



The Western India Automobile Association



partners including Autocar India, Radio Mirchi Afternoon Despatch & Courier and Zee TV



The Rotary, Rotaract and Interact Clubs of Mumbai



Maruti Udyog Limited

ROAD SAFETY PLEDGE Every individual touched by the Drive for Safety project was requested to sign a pledge to reinforce his commitment to the cause. The pledge stated: “I care for my loved ones. I care for myself. I care for Mumbai city. I will always drive safely. I the Castrol Drive for Safety”. In Mumbai, a total of 100,000 pledges were signed.

Awards and Recognition In recognition of the work done on the above project, Castrol India Limited has received the following awards : 

The IRTE-Prince Michael International Award for promoting the cause of Road Safety



The Dalton Pen Award for a press ment created as part of the Castrol Drive for Safety campaign



Finalist at the Cannes International Advertising Festival for a press ment created as part of the Castrol Drive for Safety Campaign.


50

Project Report

Social Investment Program While

our

Social

Investment

programmes around the world incorporate a wide range of initiatives appropriate to local circumstances, undertaken

they

with

a

are

increasingly

common,

global

approach. This is designed to foster mutual advantage through projects that help create stable, open and thriving communities - because we believe that these provide the best conditions for business to be successful. Social Investment in India In line with our global social investment philosophy, Castrol India has a planned and structured social investment programme. Following the Gujarat earthquake in 2001, Castrol undertook the rehabilitation of two villages - Bhaivari Vandh and Bandiya in Kutch district. Besides rebuilding of houses, community hall and school, we set up clean drinking water and sanitation facilities. The project was completed in 2003 and both villages were officially handed over to the villagers. As a part of Social Investment activities in 2003, Castrol India launched a drive for safety programme aimed at propagating safe driving habits amongst car owners in the city of Mumbai. The programme was then extended to Delhi in 2004. In both Mumbai and Delhi, over 1 lakh people were ed and they signed the pledge to drive safely. Year 2005 saw two social investment projects which included restoration of education supplies of flood effected children in Mumbai and providing livelihood to fishermen by donating Boats in Tsunami affected areas of South India.


51

Project Report

FORCE FOR GOOD REBUILDING LIVES NOT HOMES HELPING REBUILD LIVES IN AN EARTHQUAKE HIT VILLAGE IN GUJARAT Rebuilding lives, not just homes On 26th January 2001, an earthquake measuring 7.9 on the Richter scale, hit the state of Gujarat in Western India, leaving behind a trail of unparalleled damage, destruction and loss of life. Immediately after the earthquake, many of BP employees across the world were keen to contribute towards relief efforts. Their contributions were pooled and then matched by the BP Foundation. More than $85,000 was raised in this way. Funds were channelled through the Disasters Emergency Committee, an umbrella organisation made up of 14 international aid agencies, and given specifically to Help the Aged, Tearfund and Concern to relief in the affected areas. Tearfund gave temporary shelter, cooking kits and food supplies to 5,000 families in 17 villages in Bhachau and Rapar taluks. They also improved water storage facilities in seven villages and provided employment to 1,000 families. Help the Aged supplied basic provisions such as food and blankets to 7,500 older people and their families, as well as medical and surgical treatment to over 22,000 people in 192 villages. Whilst the above aid was immediately disbursed towards relief efforts, there was clearly a need for long term sustainable development and Castrol India became the focal point for the global . The approach to the project was “to rebuild lives, not just homes”. This was built around a model of “working partnership” with NGOs and villagers and not by mere donation. We entered into a partnership with an NGO – Vivekananda Research & Training Institute and together we identified two partner villages – Bandiya and Bhaivari Vandh.


52

Project Report

Rehabilitation process Castrol India, VRTI and the villagers worked closely on the rehabilitation process which covered: 

Reconstruction / retrofitting of 195 houses;



Health and hygiene – providing clean drinking water / sanitation facilities



Women empowerment providing sustainable income



Sustainable income generation – watershed development



Education – building school / innovative mid-day meal scheme

This project has impacted over 1000 people and helped them regain their self respect and dignity. The project was completed on schedule in mid 2003. EDUCATION AFTER MUMBAI FLOODS On 26th July, 2005, a torrential downpour caused heavy floods in Mumbai, killing many and rendering many others homeless. Post the disaster, an NGO called United Way Mumbai brought to attention the need for education aid in various schools in Mumbai, Navi Mumbai and Thane. Castrol India immediately responded by involving in a project to provide for school stationery, uniforms, etc for flood-affected children. These were distributed by the partner NGO to 6 schools and 16 slum communities in the flood affected areas. With the help of this project, Castrol India restored educational supplies of over 3000 school children.

CHAPTER CHAPTER–VII –VII BBM, Mountain View College of Business Management Science, Ckm.

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Project Report

7. Castrol Indian Market and Competition Castrol hasn't suffered from competition at all CASTROL India Ltd, part of the Indian lubricants market for about three decades, is still a neck ahead of all private sector competitors in of sales and brand recall. Mr Ram Savoor, CEO and Managing Director, Castrol India Ltd, recently spoke to Bu siness Line about the company's performance, strategies and plans after its takeover by BP Amoco. Excerpts: Company's performance over the last two quarters. Last year base oil prices were high. As a result, we had to increase prices. Unfortunately, others did not follow suit. So we had to cut costs and the margins were affected. But in the second quarter this year, we saw lower base oil prices and a jump in profits. So it may not always be very reasonable to judge (a company's performance) on the basis of the previous quarter basis. This year, we have not only been able curb our loss of volumes at three per cent, compared to 15 per cent losses sustained by our competitors, we have also improved our market share.

Castrol's present network of shoppes and presence in the bazaar market is not

enough for setting up a strong retail backbone for selling products such as diesel and petrol. It takes an investment of at least Rs 300 to 400 crore every year, to set up 100 petrol retail outlets. We are not looking at such a spend. So unless there is a really big plan for substantial investment in India, BP Amoco may not approach the Indian market directly. The Government guidelines for entering petroleum products' retail trade are prohibitive for private sector players. The Government has been asking that private players put up bank guarantees of Rs 2,000 crore in the absence of equivalent investments in p etroleum infrastructure.

Castrol's plans for the BP brand BBM, Mountain View College of Business Management Science, Ckm.

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Project Report When I took over last year, there was talk of Tata-BP closing down and that people would be out of jobs. But we have come away from all that. Tatas decided that lubes was not their strategic business and wanted out. BP has completed the process of buying out Tata's 49 per cent stake in the t venture. The BP brand now has a new proposition. While Castrol caters to the high-end customers, BP will look at the lower end segment. We will continue to have separate products being sold under the CIL and BP brands. BP will sell to those customer pockets and a reas that Castrol does not cater to. Castrol has catered to the consumer automobile and industrial speciality segments. In this field, we hold about 10 per cent market share. Castrol has stayed away from the commodities business which forms about two-thirds of the industrial oils market. As per our estimates, we hold 26 per cent of the consumer automotive segment. In the industrial segment, where we cater top-end speciality oils such as cutting fluids and engineering, we hold about 10 per cent. As for whether Castrol has suffered in the bazaar market because of competition -- no, we have managed to hold volumes and at the same time have gained 2.5 per cent market share over the last one year. To be honest, there are no established methods to work out market shares in the lubes market because no one knows the exact size of this market. Players look at their volumes and compare with those of their competitors and give an estimate in specific se gments. Imported base oil affected Castrol's performance Base oil prices have been linked to crude prices. We generally import about 70 per cent of our base oil and the rest is purchased from Indian Oil Corporation or Hindustan Petroleum. But depending on economics, this proportion undergoes change. So if we h ave to bear the brunt of prices soaring internationally, so do our competitors in the Indian market.

Castrol shutting two of its units over the last one year BBM, Mountain View College of Business Management Science, Ckm.

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Project Report What we are trying to do is get away from high-cost manufacturing. And as part of our cost-cutting exercise, we decided to close down two of our units over the last one year. Of our seven plants, the one at Wadala in Mumbai, set up in 1962, had machinery which was completely obsolete. So we closed down this unit. The other plant we closed was in Hoskote, Karnataka. We had to bear prohibitively high transportation costs becaus e of this unit as it was far away from any port. We continue to look at other measures to bring down expenditure. Company done to take on the spurious products marketers Any leading brand has to face the problem of imitation. Whether it is Castrol or Servo, or any other well-known brand, there are fakes being sold in the market. We are the only company with a trade marketing wing consisting of about 10 people which identifies the making and marketing of spurious products across the country and initiates legal action. About 40 to 50 raids are conducted annually. Unfortunately, th ere is no strong Government to stop this. Castrol spend on advertising and promotion We spend around five per cent of our earnings on advertising and promotions. Our ad spend complements our position in the market. We have to let our customers know we are present and hence the need for advertising and promotion. For example, a few years ago, we dyed our product red. Now everyone has followed suit. As a matter of fact, one competitor has actually announced the colour in its name as if it were a speciality of its product.

CHAPTER CHAPTER–VIII –VIII BBM, Mountain View College of Business Management Science, Ckm.

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8. Analysis and Interpretation Table .1. Classification of the respondents on the basis of Gender. Sl. No. Gender 1 Male 2 Female TOTAL

No. OF RESPONDENTS 95 5 100

Graph showing out of 100 respondents 95% of respondents are male and 5% of the respondents are Female.


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Table .2. Classification of the respondents on the basis of age

Sl. No. 1 2 3 4 TOTAL

Age Above 18 years 18 to 30 years 30 to 45 years 45 and above

No. OF RESPONDENTS 45 10 15 30 100

Graph showing out of 100% of the respondents , 45% of the respondents age are below 18 years, 10% of the respondents are 18 to 30 years, 15% of the respondents are 30% to 45 years and 30% of the respondents are 45 and above.


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Table .3. Classification of respondents on the basis of Income SL. NO. 1 2 3 4 TOTAL

INCOME Below Rs.10,000 Rs.10,000 - 60,000 Rs.60,000 - 80,000 Rs.80,000 & above


Graph showing out of 100% respondents , 5% of the respondents income below Rs.10,000, 20% of the respondents annual income Rs.10,000 - 60,00045% of the respondents annual income Rs.60,000 - 80,000and 20% of the respondents annual income is above Rs Rs.80,000 & above.


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Table .4. Classification of respondents on the basis of Qualification Sl. No. 1 2 3 4 5 TOTAL

QUALIFICATION Below S.S.L.C PUC Graduation Post Graduation Others

No. OF RESPONDENTS 8 42 20 20 10 100

Graph showing out of 100% respondents, 8% of the respondents are Below SSLC, 10% of the respondents are PUC, 42% of the respondents are Graduation, 20% of the respondents are Post graduation and others 10% means Nursing, Diploma etc..


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Table .5. . Classification of the respondents on the basis of Vehicle Use. Sl. No. s 1 Yes 2 No TOTAL


Graph showing respondents using vehicle, 54 % of the respondent are using vehicle and 20% of the respondents don’t’ use the vehicle.


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Table .6 Classification of the respondents on the basis of type of vehicle Sl. No. 1 2 3 4 5 TOTAL

Type of Vehicle Heavy Vehicle Two Wheeler Car Truck Others


Graph showing respondents using type of vehicle 20% of the respondents are using Heavy vehicle, 35% of the vehicle are using two wheeler, 15% of the respondents are using car 22% of the respondents are using Truck and others vehicle using are 8%.


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Table .7 Classification of the respondents on the basis of using oil brand. Sl. No. 1 2 3 4 TOTAL

Factor Cheap Rate Brand Name Company Preferred Others


Graph showing respondents are using Engine oil quality, 20% of the respondents are using low quality of Engine oil, 30% of the respondents are using for brand Image. 10% of the respondents are using company preferred engine oil, 40% of the respondents using Others.


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Table 8 Classification of the respondents on the basis of Company Name Sl. No. 1 2 3 4 5 TOTAL

Company Name Castrol Hp Indian Oil Bp Others

Graph showing


respondents using engine oil Company name, 25% of the

respondents are using Castrol, 10% of the respondents are using Hp, 40% of the respondents are using Indian Oil, 20% of the respondents are using Bp, 5% of the respondents are using others brand.


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Table .9 Classification of the respondents on the basis of using region of engine oil. SL. NO. 1 2 3 4 5

PERFORMANCE. Increase Mileage Smooth Riding Engine Safety Don’t know Others TOTAL

NO. OF RESPONDENTS 5 22 35 38 0 100

Graph showing respondents using engine oil for vehicle reasons, 5% of the respondents are using Increase Mileage, 22% of the respondents are using for Smooth riding, 35% of the respondents are using for Engine safety, 38% of the respondents are don’t know the uses of engine oil.


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Table 10 Classification of the respondents on the basis of using engine oil. Brand prefer. Sl. No. 1 2 3 4

Prefer Cheap Rate Brand Name Company Preferred Others TOTAL


Graph showing respondents using engine oil preferred. 13% of the respondents are using Cheap Rate, 37% of the respondents are using Brand Name 45% of respondents are using Company Preferred and 5% of the respondents are using others.


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Table 11. Classification of the respondents on the basis of when engine oil change Sl. No. 1 2 3 4 TOTAL

Factors Depend on Oil life Don’t know Company suggest Others


Graph

showing respondents when engine oil change, 10% of the respondents are change engine oil depend on the oil life, 45% of the respondents are don’t know, 15% of the respondents are company suggest time change the engine oil, and 30% of the respondents are change other reason.

Table 12. Classification of the respondents on the basis of ads seen media.


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MEDIA TV ad Newspaper Ad Hoardings Company Outlet Others

NO. OF RESPONDENTS 25 20 30 25 0 100

Graph showing respondents are seen ads through which media 25% of the respondents are seen from TV, 20% of the respondents are seen from Newspaper ads, 30% of the respondents are seen form hoardings, 25% of the respondents are seen from Company outlets


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Table .13. Classification of the respondents on the basis of Castrol using regularity Sl. No. 1 2 3 4 TOTAL

Using from Less than 6 months Last 1 year More than months More than 1 years


Graph showing respondents Castrol engine Oil using regularity

20% of the

respondents are using less than 6 months, 10% of the respondents are using last 1 year


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Table .14. Classification of the respondents on the basis of Engine Oil Performance. Sl. Opinion No. 1 Average 2 Good 3 Very Good 4 Excellent TOTAL


Graph showing respondent’s opinion of Castrol Performance , 28% of the respondents opinion average, 12% of the respondents opinion are Good, 30 % of the respondents opinion very Good, 40% of the respondents opinion Excellent.


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Table 15. Classification of the respondents on the basis of ad Campaign Sl. No. 1 2 3 4 TOTAL

Average Very Good Good Excellent


Graph showing respondent’s opinion of Castrol Engine ads Campaign, 40% of the respondents opinion average, 10% of the respondents opinion are Good, 30 % of the respondents opinion very Good, 20% of the respondents opinion Excellent.


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Table .16. Classification of the respondents on the basis of use Castrol Engine Oil

Sl. No. Use 1 Yes 2 No TOTAL


Graph showing non use respondents opinion of using Castrol Engine oil, 75% of the respondents are ready to use, 25% of the respondents are not ready.


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Table .17. Classification of the respondents on the basis of use Castrol Engine Oil

Sl. No. Ues 1 Yes 2 No TOTAL


Graph showing non use respondents opinion of using Castrol Engine oil, 75% of the respondents are ready to use, 25% of the respondents are not ready.


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Table .18. Classification of the respondents on the basis of ready to use Trial Castrol Engine Oil. Sl. No. Trial Use 1 Yes 2 No TOTAL


Graph showing non use respondents opinion of using trail use of Castrol Engine oil, 85% of the respondents are ready to use, 15% of the respondents are not ready.

CHAPTER CHAPTER––IX IX


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Conclusion and Suggestion


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Bibliography BIBLIOGRAPHY

Books : Principals of Marketing

– Philip Kotler Marketing Management

– Philip Kotler

Web Sites: www.castrol.com www.castrolraceway.com www.moneycontrol.com

Paper: Economic Times Business Line


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