Valvoline plans auto care chain

With the number of vehicles on the roads rising by the day, and most vehicle owners left with little time to take their car or bike for servicing, here's some good news. Get ready for a dose of quick servicing chains akin to the west.

Lube maker Valvoline, which runs the second largest quick lube chain in the United States, has drawn up plans to set up similar infrastructure across India.

The company plans to set up franchisee outlets which will provide vehicle owners quick services such as a quick oil change and chassis lubrication.

"We have a big investment plan for India. The plan is at a nascent stage. But we are keen on bringing the automobile servicing business to India," Samuel Mitchell, president, Valvoline International, told Business Standard.

An executive in Valvoline-Cummins, the company's lube making joint venture, said that initially Valvoline might look at a completely different model than what it has in the US -- the outlets may not service four-wheelers, but concentrate only on two-wheelers.

In the US, Valvoline franchises offer a quick oil change, chassis lubrication and routine maintenance checks on automobiles.

Apart from the quick servicing business, Valvoline, a division of Ashland Inc, is a leading marketer, distributor and producer of branded automotive and industrial products and services.

Its products include automotive lubricants, transmission fluids, gear oils, hydraulic lubricants, automotive chemicals, specialty products, greases and cooling system products. Valvoline also offers 'Eagle One' car-care products for automotive cleaning and maintenance.

Valvoline Instant Oil Change was created in 1986 with the purchase of Rapid Oil Change centers in some cities in the US, and from Instant Oil Change and DipStick acquisitions in Lansing and Grand Rapids, Michigan.

Mitchell declined to comment on whether the new business would be carried out by a different company than Valvoline's existing set up in the country, and how much of the company's lube business would come from it.

Valvoline's partner in India, engine maker Cummins has already started a similar business in the country to service commercial vehicles on the highways. The business is being carried out by Cummins Diesel Sales & Service India Ltd.

Earlier this week, Valvoline Cummins Ltd, the 50:50 joint venture of Valvoline International Inc of the US, said it is targeting sales of Rs 250 crore (Rs 2.50 billion) for 2004-05.

The company said it would launch a suite of products researched and formulated with expertise from Valvoline, US, and customised for engines in India.

The company is also focusing further to strengthen its distribution & marketing network to enhance its reach in the lube market.

It will also launch new range of filters, Eagle One car care products such as 'Ever Fresh' perfumes, its 'Tectyl' range of rust preventives used both in the industrial and automotive segments, 'All Fleet Premium' which has approval from Ashok Leyland and has long oil drain interval, longer engine life and oil consumption control, 'Premium Blue' - environment-friendly lubricants, among others.