GP Petroleums jump on plans to invest Rs 100 crore in lubricant plant

GP Petroleums Limited (GPPL) is planning to invest Rs 100 crore in a new state-of-the-art plant in Saronda (Gujarat) to process over 300,000 kilo litres of lubricants, thus enabling the company to be present across the entire gamut of Indian lubes market.

This will be GPPL’s second blending plant in India and will manufacture specialty value added products, in addition to the automotive and industrial lubricants catering to the entire value chain. Apart from the home grown IPOL brand, the plant may blend REPSOL branded automotive products as well.

The new facility will accelerate the company’s growth engine, which will be led by the automotive segment in Tier II and III towns and cities. The company already has a robust partnership with over 500 distributors across India which will be strengthened further in the next few years.

GPPL’s brands IPOL and REPSOL are well-placed to cover all the available segments of motorcycle oils, diesel engine oils, car oils & specialty oils at different price strata.

The company currently operates a certified plant in Vasai near Mumbai with an annual capacity of 80,000 metric tonnes and houses a storage facility of 15,000 metric tonnes, one of the largest in the Indian industry.

On Tuesday, the stock of GPPL closed at Rs 51.15, up by 9.8 per cent from its previous close of Rs 46.55 on BSE. During the day, it hit an upper circuit of 20 per cent to Rs 55.85.