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Valvoline Cummins Ltd.
Term paper submission in the favor of completion of Pricing Course.
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Biju Naik Parag Sharma Shyam Shet Simon Pinto Vinayak Bhomkar E2009005 E2009029 E2009045 E2009046 E2009055
Valvoline Cummins Limited
Valvoline brand of lubricants is brought to India by Valvoline Cummins Ltd which is a 50:50 joint venture between Valvoline International Inc USA and Cummins India Limited. The product range of Valvoline Cummins Ltd (VCL) includes high quality Automotive and Industrial lubricants such as Engine Oils, Gear Oils, Transmission Oils, Cutting Oils, Greases, Specialties, etc and also technologically superior oils for CNG engines & Turbocharged engines. Valvoline has a wide range of Synthetic, Semi synthetic and Mineral based oils. All these International standard Valvoline lubricants are blended in India in Mumbai, using selected base oils and special additives as per Valvoline International’s formulations/standards.
The Valvoline Company
Valvoline International Inc., is a 100% subsidiary of Ashland Inc. (USA), a corporation listed in the prestigious “FORTUNE 500” group of companies with an annual turnover of 15 billion US $. Valvoline brand of lubricants has a very strong presence in the USA, Australia and Europe. Dr. John Ellis, the founder of Valvoline produced America’s first crude based lubricating oil in 1866.Valvoline is truly a global company with presence in more than 120 countries for more than 140 years. Today the Valvoline trademark is a part of Ashland, a Fortune 500 company. Valvoline is the oldest trademark for mineral based lubricating oils for over 139 years. Valvoline throughout the world is known as.” World’s First, World’s Finest”
The Cummins Company
Cummins is a pioneer and leader in diesel engine technology for 90 years and was incorporated on 3rd February 1919. Cummins today is the world’s largest independent manufacturer of diesel engines and is found in various applications in over 190 countries. Cummins India Ltd (CIL), headquartered in Pune since 1962, is the country’s leading manufacturer of diesel and natural gas engines for power generation, industrial and automotive markets. Cummins in India, a power leader, is a group of complementary business units that design, manufacture, distribute and service engines & related technologies. Its high performance outlook is based on customer focus, integrity and capability of its people. Part of the US $10.8 billion Cummins Inc, Cummins in India is a group of 9 Legal entities across 200 locations in the country with a combined turnover of over Rs. 6300 crores, and employing more than 11000 individuals. Cummins Vision: Making People’s life better by unleashing the power of Cummins.
etc and also technologically superior oils for CNG engines & Turbocharged engines. Transmission Oils. There are well entrenched PSU’s. Valvoline has a wide range of Synthetic. and an engine maker had for the first time decided to pool in their expertise to offer the best possible product to the customer. the latest and technologically most advanced products and an all India distribution reach. besides large private MNC Lubricant brands operating for the past 100 years(Like Castrol. in which the partners hold 50% equity each. in a joint venture with Cummins India Limited. using selected base oils and special additives as per Valvoline International’s formulations/standards The Indian lubricant market is amongst the most challenging in the world for a variety of reasons. Cutting Oils. and promoted by Valvoline International Inc. services and people. .HPCL. Gear Oils. It was an unique experiment that was attempted: a lubricant manufacturer. The JV had not only to live up to the expectations of the Indian market place but also to live up to its own hallowed history-after all it was Valvoline that had invented the first motor oil in the world 1866AD. The product range of VCL includes high quality Automotive and Industrial lubricants such as Engine Oils.Valvoline Cummins Limited Profile Valvoline Cummins Limited was incorporated in 1994. Greases.BPCL. The key to this transformational growth has been the sustained emphasis on 3 aspects. it has grown to be the 3rd largest independent foreign lubricant brand in India in just 10 years. The JV between Valvoline & Cummins was first conceived in 1998 considering all the above factors. like IOC. Valvoline has been amongst the fastest growing lubricant brand in the country and has steadily clocked milestones along the way. From just incipient volumes in 1998. We are committed to: • • • Building premium brands and businesses Providing superior value to our customers Creating unique solutions that enable our business partners to succeed with us. Valvoline Vision: We will be known throughout the world for our premium products. Shell) and a multitude of price players in the market. Semi synthetic and Mineral based oils.Consistent customer satisfaction driven focus. All these International standard Valvoline lubricants are blended in India in Mumbai. Specialties. And the JV did live up to expectations! Since its inception in 1998.
HPCL &BPCL.. and Valvoline. thus leading to lower consumption of engine oil at each fill. Winning is our passion Lubricant Market in India The lubricant market in India is intensely competitive & big. New engine and lubricant technology has resulted in lower requirement and longer usage life of the lubricant. The reasons for the low growth of the lubricant industry are twofold. Second sump size has reduced to about 15 liters. with well entrenched PSU Companies like IOC. Vehicle growth across all segments has been very good over the past 2 years. today the minimum oil change is at 18000 Km.000 core per annum and growing at 4%. HPCL).It is highly competitive industry.Rs. is expected to grow at about 4% per annum till 2013. Castrol has the largest market share at 21%.g. 65% of the market. however the lubricant demand has not grown proportionately. who contribute to approx. This sector is further divided in to 3 sub segments based upon the end users:(1)Commercial-Mainly diesel engine oil(2)Passenger carsMainly gasoline engine oils(3)Motorcycles & 3 wheelers-2 stroke & 4 stroke engine oils. The two wheeler. passenger car segments have been growing in volume & value & account for about 24% of the market. Whereas earlier engine oils were recommended to be changed every 5000-8000 Km. For e. The lubricant market is India. BPCL. Gulf.: the new generation 4 stroke motorcycle consumes about 15% lesser lubricants as compared to 2 stroke lubricants. now from 18-20 liters earlier.The industry is led by 4 major players(Castrol India Ltd.IOC is the marker leader and enjoys 23% market share Among the private sector MNC Companies. ELF. excellence and personal growth “Premiumness” is our Business.• Developing our people through a culture that values teamwork. Rest 35% of the market share is occupied by numerous players including global MNC’s like Shell. 14. The diesel Engine oil segment dominates the automotive lubricant market with a volume contribution of over 70%. . In addition in the diesel engine oil segment due to increasing fuel cost and the relative inelasticity of freight charges owners of older trucks are delaying the oil drain intervals in order to reduce costs and hence be more competitive with the newer vehicle operators. and in newer engines it is recommended at 36000 Km. Firstly technology has reduced the frequency of oil change for engines. IOCL. Industry Structure & Development The lubricant market in India is broadly divided in to 2 major segments based upon end users: Automotive segment & Industrial segment • Automotive Segment: The Automotive lubricant account for approx 62% of the market share.
the distribution of lubricants in India has undergone a transformation. Industrial segment includes lubricants used in iron ore/coal mines. Public sector companies that manufacture their own base oils. While PSU’s sell their through their own wide spread network of petrol stations. AMW. The major clients of VCL in the institutional segments include Cummins. Terex Vectra. and industrial undertakings. The growth in the industrial sectors revolves around the growth in manufacturing related projects. cement plants. The industrial segment is dominated by IOC which has a market share of 50% with the balance being distributed amongst other lubricant manufacturers. and the opening of the Indian markets to foreign MNC Companies. gear oils. The other marketing .• Industrial segment (Non Automotive): The industrial segment accounts for approx 23% of the market share. and Swaraj Mazda. It sells approximately 61% of the market to the retail segment and 39% to the industrial and institutional segment. Post 1990. coolants. Sonalika. Companies are adopting a more customer oriented approach where they are likely to focus on creating brand awareness through print and visual media. steel plants. The sale of lubricants through retail outlets has transformed the Indian automotive lubricants in to Fast moving consumer goods (FMCG). Valvoline Cummins Limited (VCL) is present in both the industrial and retail segments of the market. construction and infrastructure projects. For eg promotional campaigns and trade shows offering gifts to their customers are methods of driving sales of automotive lubricants. important as equipment segment and retail trade are the 2 major marketing the Indian automotive lubricants market. Due to the growing tie ups with Original Equipment manufacturers (OEM) are becoming they reinforce the value proposition in a particular brand. with the liberalization of the Indian economy. Distribution Structure The Indian automotive lubricants market is largely price sensitive and volume growth is stagnating due to longer lasting lubricants. private manufacturers prefer retail outlets. follow different distribution strategies as compared to private participants that solely dependent on imports. fertilizers. The original channels in competition. Mahindra & Mahindra. The different industrial lubricants include hydraulic oils.
Mahindra & Mahindra. OEM Business: The OEM division has been recently created to the rapidly growing OEM businesses. From just incipient volumes in 1998. gear oils. brake fluids and coolants are specifically catered through this segment. is the major contributor. and Infrastructure etc are catered by this division. garages. rural & agricultural dealers. This division caters to the B to B Sales. • Retail Division: This division specifically caters to the direct consumer through a chain of 700 distributors. Swaraj Mazda. it has grown to be the 3rd largest independent foreign lubricant brand in India in just 10 years. VCL has many OE customers like Elgi. fire proof lubricants and metal working fluids. both in first fill and in after market.e. . it has grown to be the third largest independent foreign lubricant brand in India in just 10 years. From just incipient volumes in 1998. The important sectors like Mining. VPP: The Valvoline Performance Products division (VPP). greases. The Cummins grades specifically for Cummins engines and other industrial grades such as hydraulic oils. super markets and wholesale distributors. • • • Valvoline Cummins Ltd Market Positioning in India Ever since its inception in 1998. Commercial & Industrial Division: The institutional business is covered by the C&I division of Valvoline.channels are authorized service stations. The divisions are structured to cater to the specific demands of each sector and thus each division brings its core competency to the market place. so that there can be focused service to this important & growing segments.Consistent customer satisfaction driven focus. The key to this transformational growth has been the sustained emphasis on 3 aspects. a range of specialty chemicals and rust preventives. division. AMW. Terex. The Business Model adopted by Valvoline Cummins Ltd Valvoline has structured its lubricant operations in India in 4 divisions to address different market segments. has in product portfolio. and a retail segment base of more than 29000 retailers across India. Other niche products that are served through this division include specialty greases. the latest and technologically most advanced products and an all India distribution reach. The division has been created. transmissions oils. Valvoline Cummins Limited has been the fastest growing lubricant company in India. This bazaar (open market segment). Cement. and accounts for approximately 61%. of its total sales. All the sales of VCL in the automotive segment come from the bazaar i.
The Valvoline Cummins brand ranks amongst one of the well known brands in the business. First the company increased its geographical reach substantially by appointing additional distributors. This was chiefly due to 2 reasons. VCL has managed to grow its top line at a CAGR of 26% and its volumes at a CAGR of 11. Even though the overall lubricant market growth in India. During HI 2009-10. In the financial year 2008-09(Oct 08-Sept09). which has led to longer lubricant life and longer drain intervals.1% from FY05 to FY09 due to proactive marketing initiatives. road shows with vans equipped with audio visual aids and upgrading the packaging of products every 2 years to appeal to the consumers.2%. the company’s volume grew by 4. the company has access to a large database of formulations and enjoys R&D support which places it favorably to cater to a variety of applications in the lubricant sector in India. the volumes of the company grew by 38% on a y-o-y basis due to robust growth in auto sector. formulation behind lubricants is science intensive. VCL enjoys goodwill of Valvoline brand & Logo as well as technical support from Valvoline International inc. and increased its total distributors from 500 to about 700. VCL Wide range of lubricant products and extensive marketing network: . wherein VCL is advantageously placed at par with bigger players. such as training programs for mechanics. as against 2-3%. While the manufacturing per se is not technology intensive. de growth in the industry.5million liters of volumes.VCL has captured market share of 8% of the lubricants market of the country in spite of being a late entrant in the industry.Second the company acquired a new OEM customer Mahindra & Mahindra who alone added 1. Owing to the association with Valvoline international. has slowed down owing to technological advancements.
Infact. The company gets its lubricants manufactured at a state of the art facility at Mumbai. . The company has 45 warehouses spread across the country. Valvoline is amongst the very few lubricant companies in India that have launched both the CI4 Plus and CJ4 Plus oils in India. Mumbai. The company has 700 distributors. and passenger car oils. and has a dealer network of more than 29000 retailers. motor cycle oil. The company has established a wide marketing and distribution network spread across all states in India. It has regional offices in Chennai.VCL has a large product portfolio careering to various engines and segments such as diesel engine oils. and Delhi. Product Profile: This confidence that the customer has in Valvoline is buttressed by the comprehensive product portfolio of the largest Engine oils and industrial grades. Calcutta.
leading to low growth in recent years. The primary raw material used in a blending plant is base oil. characterized by the presence of few large players as well as number of unorganized players.VCL Strengths & Concerns: VCL Strengths • Strong brand name & technical support of promoter Valvoline International Inc • Large captive business of promoting company Valvoline Cummins Ltd. • Robust marketing & distribution network to cater to retail sale in the domestic market • Demonstrated higher growth then the industry. both on the lubricant and engine front. Apart from base oils a large number of additive chemicals are used in these lubricants in different proportions depending upon the end application. Lubricant Manufacturing Process The Lubricant manufacturing per se is not technology intensive. however formulation behind lubricants is science intensive. Industry growth relatively slow and negatively impacted due to technological developments. Vulnerability of profitability due to fluctuations in prices of base oil. Vulnerability of sales to slowdown in auto sector. which is manufactured in a refinery by the distillation of crude and varied refining processes. which is a petroleum derivative.The Lubricant market . emphasis on premium products and wide distribution network of VCL. though the company has been able to pass on the raw material price hike to consumers. Core competency of Valvoline Cummins Limited VCL’s strong brand equity. Lubricants are manufactured by the blending of base oils and additives. due to proactive marketing strategies • Moderate financial risk profile. Base oil constitute . however outlook is positive in near term due to favorable prospects for the auto sector. technical support of the promoter Valvoline International (Subsidiary of Ashland Inc). characterized by moderate gearing level and high ROCE Concerns • • • • Intensely competitive lubricant oil industry. large captive business of promoter Cummins India Limited. Valvoline Cummins is relatively smaller layer in the industry.
anywhere between 75% to 100% of the final lubricant. and additives constitute 0 to 25% of the final lubricant depending upon the end application What are Lubricants? Base oils Additives(0 to 25%) (75% to 100%) .
the type & quality of base oil used plays a very important role in determining the useful life of the finished lubricant. or it can be a synthetic material that is produced by a single manufacturer to give a set of specifications. and hence their usage is confined only for very specific application like Aviation etc). Mineral based oils are more commonly used.Finished Lubricant Raw Materials used in Lubricant manufacturing: Base oil & Additives Base Oil & Types of Base Oil: As seen above final lubricant is a blend of base oil & Additives. (Synthetic oils are very expensive. has established base oil classification for 5 different categories that are based on physical and chemical characteristics of the base stock . Base oil can be either a refined petroleum product. Base oil constitutes between 75% to 100% of the final lubricant. Hence. The American Petroleum Institute (API). Mineral base oils are refined by a number of processes from crude oil and so the choice of crude can affect the consumption.
so as to enhance the existing properties of base oils. Valvoline Cummins Ltd. The percentage of additive in finished lubricant may vary between 0 to 25% depending upon the application. which the base oil does not have naturally. Additives & Types of Additives Additives are materials that are added to base oils. high thermal stability. or to impart new properties. which have high oxidation resistance. This results in longer lubricant service. uses mainly Group II Hydro cracked base oils. high VI.(Group IV &Group V are synthetic base stocks). % of saturates * VI.Group I to Group III categorize mineral based stocks by levels of Sulfur. The different additives commonly used include: • Antiwear additives • Detergents • Dispersants • Antioxidants • Anticorrosion • Viscosity Improvers • Pour Point depressants .
Blending of Lubricants The standard blending procedure for lubricants comprises of the following: • • • • Addition of components( Base oils & Additives) Heating Mixing This is followed by testing of blend to confirm as far as possible that the right quantities of all components are present .
However the company has been able to successfully pass on the price increases to consumers without sacrificing volumes. the prices of base oil have been fluctuating as seen in the fig. and dispatched. The company imports about 60-70% of its base oil requirement. Hence all lubricant companies including VCL are exposed to fluctuations in crude oil prices. which is manufactured in a refinery by the distillation of crude and varied refining processes. Valvoline Cummins Ltd procures its base oil from different sources. Vulnerability to fluctuations in International Crude oil prices as the major raw material is a petroleum derivative: The primary raw material used in lubricant manufacturing. It sources about 60% of its base oil from Exxon Mobil (Singapore). as there is a lag time in all mark ups and mark downs. Cost of Raw Materials & Finished Product The primary raw material used in lubricant manufacturing is mineral based base oil. Apart from base oil a large number of chemical additives are also used in these lubricants in different proportions depending upon the end application. It sources the balance 30 to 40% of its base oil requirement from domestic oil companies like HPCL. The product prices cannot be revised immediately. .• After conducting various laboratory tests. base oil is a derivative of petroleum. the final lubricant is packed in various containers. Like for instance in the current scenario of high crude oil prices.
Wide Product Portfolio of Valvoline Cummins Limited VCL has a wide product portfolio. PCMO(Passenger car Motor oils) 4. Base oil & additives The global downturn in economic conditions put many sectors to severe test. but by the end of 2009 it had risen to around $90 per barrel. the marketing function is responsible for the product portfolio rationalization. In VCL. Industrial oils. Though base oil prices were softer for a shorter period. As part of the company strategy to remain competitive the product portfolio is reviewed by the company on a periodic basis so as to ensure that the product mix of the company is maintained at its optimum level to give desirable suitable growth to the company in the long run. catering to different segments with more than 400 Stock keeping units (SKU). 10. Gear Oils 7. Brake Fluid 6. With intent to protect their refining margin and in view of lower demand. The marketing function reviews the product mix of the company half yearly with complete analysis to optimize the product mix. The crude price touched new lows at the end of 2008. Greases 8. The performance additives prices remained high throughout last year. eventually the general trend has been that the prices have increase from past year due to several factors. The products are broadly classified in to the below segments: 1. over 2 successive years. Cummins Oils Within each of the above segment there are various pack sizes. DEO(Diesel Engine oil) 2. Similarly the marketing function of the company is responsible for handling the launch of new product/SKU in the market. A particular SKU shall come under review for discontinuation if it has monthly sale of less than 3KL. Coolants 5.5 Ltrs to 210 Lts barrel. ranging from 0. MCO(Motor Cycle Oils) 3.Crude oil Crude prices continue to remain an important cost input element to base oil in addition to supply demand economics. and negative growth rate. This was mainly because of rising demand in Asian countries and pricing policy of global additive companies to recover losses. As a company policy a new product SKU . The global economic crisis affected the refining & marketing sector significantly. run costs and forced shutdowns to balance the demand and supply situation. OEM Co-Branded oils 9. The year 2009. at $40 per barrel. refineries sought to take measures like closures. for instance was a very volatile year.
and if the oil is intended to be used in that engine.00 172. The price list contains the below details for eg: Sr. They get the product approved by leading National/International OEM Recently several global OEM has started accelerating their activities in India. Like for instance the sump size of a particular engine is 10Liters. Audi. Product Pricing VCL. Volvo.000 Ltrs). then the pack size may be 10Liters.00 . Valvoline thus continuously gets the approval from leading OEM. Usually the customers are targeted by a 2 prolonged strategy: 1.is launched only if it is expected to fetch a gross profit of minimum 10% AND 60KL (60. publishes a basic price list of all the SKU’s. 2. Besides the sump size also plays a role in determining pack size. BMW. small transporters through small packs. both in the automobile and industrial segment. The aftermarket: retailers.50 158. mechanics. No 1 2 3 SAP Code 500255 500257 500259 Prod Description Premium Blue 15w40 CH4 Premium Blue 15w40 CH4 Premium Blue 15w40 CH4 Pack size 210 55 20 Basic Price Rs/Ltr 151. Product Pack size (SKU): The pack sizes are determined as per the customer/ segment needs. Most of the oils are also available in 1 Ltrs packs.00 Rs/Pack 4815. The Authorized service centers. large institutional customers through barrels. OEM approval by recommendation The VCL has a strategy policy. The same is circulated to all the sales Executives. MAN. as it is the quantity required for top up. sales per annum. and VP Marketing. large fleet owners. The price list acts as a valid document and is used at a reference while quoting prices to all customers. Mahindra have launched several new model in the Indian market. The price list is duly signed by the GM Sales. and the authorized channel partners’ around the country. These new technologies high performance engines will require high performance superior quality lubricant and this intern provide additional opportunities for the lubricant players.
Premium Blue 15W40 is premium quality API CH4 Engine oil. by promoting premium priced superior oils. Besides Cummins approval. this has resulted in lower market growth. which are needed to counter the tough engine environment. Even though these technological changes have led to fewer oil changes. In the lubricant industry Castrol has clear Price leadership. which have led to longer drain intervals. Caterpillar. this product is tested & approved by several leading OEM’s like Volvo. The general trend is that Castrol takes the lead in increasing the prices. prices its different products. maintain viscosity and prevent resultant wear related problems. etc. In the above case for example. hydro cracked base oil. and have longer life.00 1260. However the company usually allocates week’s time before switching over to new price regime. Thus Premium Blue exceeds API (American Petroleum Institute) standard limits. Price circulars are amended accordingly to accommodate price changes caused due to factors like increase in input costs etc. and selective additives.00 The price circular will include all the terms & conditions indicating the Excise duty. MAN. and offers unsurpassed protection. The technological changes in engines. additive. The customers are now more responsive to premium products. Also the terms and conditions specify that the prices are subjected to change without prior notice. have led to transformation in lubricant industry. and better fuel efficiency. and the other players follow. This oil is marketed exclusively through authorized Cummins dealers.4 5 6 500262 500265 500350 Premium Blue 15w40 CH4 Premium Blue 15w40 CH4 Premium Blue 15w40 CI4 08 05 210 174. It will be circulated to all the concerned indicating the precise date of price validity.00 180. have opened the opportunity for selling premium products. and tougher emission norms. However this disadvantage has been offset. in such a way that it captures the value to the customer.00 1950. These challenges have been a blessing in disguise. like Input cost of base oil. which are formulated with premium base oils. Valvoline claims that Premium Blue offers patented dispersant technology to help control soot. This helps the company & channel partners in liquidating old price inventory. tax structure/statutory levies etc. All Cummins engines are factory filled by Premium Blue. On the OE (Original Equipment) front it is exclusively recommended and endorsed by Cummins Inc. The lubricant players including Valvoline have realized that the new engines. The oil is formulated using premium Group2. packaging material etc. besides the tough regulatory mechanisms with respect to environmental norms. Apart from Cummins dealers this oil is not sold through any . The pricing covers the variable cost involved in manufacturing the product. Pricing Basis Valvoline Cummins Limited.00 164.
which are exclusively sold to this segment. the customer segments the markets and pays separate attention to different customers. this oil is sold to major Institutional customers directly on a case to case basis.other local Retail distributor/dealer. Whereas the average selling price of this product (Average of all pack sizes). It is positioned in the premium end of the market in direct competition with CH4 variant of Castrol & Shell Tellus CH4 Oil. packaging material. The company does not treat every customer equally. Premium Blue is marketed and perceived as a premium brand of lubricant. . The variable cost of Premium Blue oil. not only captures the variable cost involved in manufacturing. and is a conscious marketing policy Apart from Cummins Dealers. because of their wide network. and hold over their customers. Valvoline sells the Cummins oils to this segment. Cummins dealers are able to sell at a premium. is Rs 170/Ltr. This is a strategic policy of VCL. and is thus sold at a premium. The Cummins captive segment is a high profitability distribution network for VCL. but it also captures the value served to the customer. Product Differentiation Premiu m Product s Specialty Products Specifications Products Product Technology Product differentiation is a major strategy. Thus. The brand Premium Blue is promoted very strongly. This selling price of Premium Blue. it is harder to achieve product differentiation. to further promote exclusivity. additive. which includes the cost of Base oil. Further the company has realized that as technology gets more mature. freight amounts to Rs 51 per liter.VCL Strives to sell a customized lubrication solution involving product and services that result in documented cost reductions & Productivity improvements.
Thus in the case of Premium blue. including wear metal analysis. However for institutional customer this is offered as value added service. where in the detailed report is available within 5 working days from receipt of the oil samples.( Rs 3000. 6. 3. the report helps to determine the useful life of the oil. This facility is available on a chargeable basis. 5. the world leader in Lube dispensing equipments. We need to sell documented improvements in your customer needs and productivity. The Valvoline POST. the company not only relies on formulating a superior product. we adopt a customer engagement process. The other Value added services offered by VCL. These are offered to important customers to improve overall efficiency of lube operations. by the gallon or by the drum. learning. Here the oil samples are collected from customer site. tested for Physical & Chemical properties. . send to our laboratory. 4. for Physico Chemical test). Continuous Improvement. The entire program is Web based. it also supports this offer with full package of oil analysis to help determine the oil drain interval and offer preventive maintenance tool protecting the customer’s investment Customer engagement Process The company has realized that they are not selling products by the ton. Promotes this tool. Management survey Proposal Implementation. The different steps include: 1. Document the advantages. not merely as oil testing facility. as the advantages are quantifiable.In a highly competitive market The Company has realized that it has to move from merely selling products.VCL. manufactured from superior base oils and additives. • Lube dispensing equipments: VCL has tied up with Macnaught. and services bundled with products as a unique customer offering. but as preventive maintenance tool. is one such tool used by VCL. which is greatly appreciated in the industry. Progressive Oil sampling Test. Initial Information exchange. This helps in binding major customers. to selling customers solutions: customization. In case of major institutional customers. 2.
which conducts the 2 days program highlighting safe driving and fuel savings measures. • . This is done at major customer. a government enterprise. COLD (Customer operated Lube depot): Here we maintain inventory at the customer site. on behalf of the customer. where the business volumes are huge. Coal India. which are located at remote locations.• Safe driving & Fuel saving Training: The Company conducts safe driving programs at major customers. This service is offered to many PSU Customers like NMDC. VCL has tied with PCRA.
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