### **Overview** Gandhar Oil Refinery (India) Limited is one of India’s leading specialty oil manufacturers and a top-five global producer of white oils by revenue. With over three decades of operations since its incorporation in 1992, the company has established itself as the **#1 white oil manufacturer in India** with a **26.5% domestic market share** and **9.6% share of the global white oil market**. It operates under the flagship brand **'Divyol'**, supplying high-quality specialty oils, lubricants, and hydrocarbon products to consumer, healthcare, automotive, industrial, and power sectors across **over 100 countries**. The company is strategically pivoting toward **high-growth end-use industries**, particularly **personal care, pharmaceuticals, and healthcare**, where its **Personal Care, Healthcare & Performance Oils (PHPO)** division has become the cornerstone of its growth trajectory. --- ### **Core Business Segments** Gandhar’s operations are structured into three primary divisions: | Segment | Revenue Contribution (FY25) | Key Applications | |--------|-----------------------------|------------------| | **PHPO** (Personal Care, Healthcare & Performance Oils) | **~47.3%** | White oils, jellies, waxes for cosmetics, skincare, ointments, OTC medicines, food-grade applications | | **Lubricants** | ~29% | Automotive oils (engine, transmission), industrial oils, greases | | **PIO** (Process & Insulating Oils) | ~10% | Transformer oils, rubber processing oils, industrial applications | > **Note:** PHPO is the company’s largest and fastest-growing segment, contributing nearly half of total revenue and growing at a **CAGR of 23.8% in revenue and 13.3% in volume (FY21–FY24)**. --- ### **Market Position & Competitive Strengths** - **#1 in India & Top 5 Globally** in white oils by revenue. - **PHPO Segment Leadership**: PHPO is recognized as India’s **number one white oil brand**, serving marquee clients like **Procter & Gamble, Unilever, Marico, Dabur, Emami, Bajaj Consumer Care, Encube, and Amrutanjan**. - **Diversified Global Customer Base**: Over **3,500 customers**, with **>70% repeat business**, and top 20 clients accounting for only ~28% of revenue—indicating low client concentration and strong diversification. - **High Switching Costs**: Rigid customer onboarding (4–5 years involving audits, trials, certifications like FDA, GMP, Halal, Kosher) locks in long-term relationships. --- ### **Manufacturing & Operations** **Three Strategic Facilities:** 1. **Taloja, Maharashtra (India)** – Focus: **Export-oriented PHPO production**; proximity to Mumbai Port and JNPT. 2. **Silvassa, Dadra & Nagar Haveli (India)** – Focus: **Domestic market**, specialty oils, and R&D. 3. **Sharjah, UAE (Texol Lubritech-FZC)** – Focus: **Middle East & Africa markets**, sourcing proximity to ADNOC and Saudi Aramco Luberef. - **Total Installed Capacity**: **597,403 kiloliters**. - **Capacity Utilization (FY25)**: - Indian plants: **85–86%** - Sharjah plant: **60–65%** (growth potential ahead). - **Recent Expansions**: - **Taloja plant expanded by 100,000 kL** (completed by FY24). - **Silvassa plant adding 18,840 kL** for automotive oils. - **Completed CAPEX removed production bottlenecks**, enabling scalability. --- ### **Strategic Initiatives (2024–2025)** #### **1. Geographical Expansion & Global Integration** - **Texol Plant (UAE, 2017)**: Successfully serving GCC, Africa, and Far East. - **Exploring New Manufacturing Hubs**: Leveraging customer partnerships to set up production in **Indonesia, Europe, and the United States**. - **Contract Manufacturing Push**: Moving up the value chain by manufacturing finished products for key clients. #### **2. Infrastructure & Logistics Transformation** - **Vadhavan Port Project** (in collaboration with JNPA): - Signed **non-binding MoU** for a **₹1,000 crore liquid storage terminal and blending plant** at the upcoming deep-draft port in Palghar, Maharashtra. - Expected operational by **FY2030**, this project will drastically reduce logistics costs and improve export efficiency. - **Planned Jetty-Based Blending Facility**: Will enhance supply chain resilience and support global clients with faster delivery. #### **3. R&D & Innovation** - **DSIR-Certified R&D Centers** in Taloja and Silvassa. - Focus on **high-margin, customized products**: - Sub-zero automotive oils - Vitamin A&D ointments - Derma-grade oils and hair serums - USFDA-compliant PHPO products - Supports product development under **strict certifications**: FDA, WHO-GMP, FSSAI, ISO, Rexroth, CPRI, RDSO, Kosher, Halal. - Collaborative product development with clients to meet regional and application-specific needs. --- ### **Supply Chain & Raw Material Management** - **Direct Sourcing**: Procures base oil directly from global leaders (SK Lubricants, S-Oil, GS Caltex, ADNOC) — **no intermediaries**, ensuring better pricing, quality, and volume assurance. - **Annual Contracts**: Volume-based discounts and secure supply commitments. - **Price Risk Mitigation**: - **ICIS benchmark-linked pricing** for raw materials. - **Price pass-through contracts** with key clients. - **Just-in-Time (JIT) inventory** to reduce holding costs. - **Strategic UAE Sourcing**: Sharjah plant’s proximity to major refineries reduces procurement risk and logistics costs. --- ### **Financial & Operational Highlights** | Metric | Value (Latest Available) | |--------|----------------------------| | **FY24 Revenue** | ₹41,132 million | | **Revenue CAGR (FY21–FY24)** | **26%** | | **PAT CAGR (FY21–FY23)** | 15.02% | | **RoE / RoCE (FY23)** | 32.28% / 41.19% | | **Overseas Sales (FY25)** | ₹15,656 million (down from ₹24,028 million in FY24 due to Red Sea disruptions) | | **Export Revenue Share** | 40.2% (FY25) — down from 58.46% (FY24) due to global disruptions | | **Domestic Sales Growth (FY25)** | **+19% YoY manufacturing volume** (due to shifting export inventory to domestic markets) | > Despite global disruptions, the company demonstrated **strategic agility** by increasing domestic sales and maintaining presence in over 100 markets. --- ### **Subsidiaries & Joint Ventures** | Entity | Ownership | Purpose | |-------|-----------|--------| | **Gandhar Shipping & Logistics Pvt. Ltd.** | Wholly-owned | In-house logistics management | | **Gandhar Foundation** | Wholly-owned | CSR initiatives | | **Gandhar Lifesciences Pvt. Ltd.** | Wholly-owned (₹10M investment in Aug ‘24) | Future pharma, cosmetics, contract manufacturing (not yet operational) | | **Texol Lubritech-FZC** | Subsidiary | UAE manufacturing & sales | | **Texol Lubricants Manufacturing LLC** | Stepdown subsidiary | Supports UAE operations | | **Texol Oils FZC** | **50% JV (Sharjah)** | Grease, lubricant manufacturing & personal care products (stake divested by Sep 30, 2025) | > **Note**: JV divestment indicates strategic realignment focused on core PHPO and manufacturing strength.