Mr. K R Padma Kumar, the Chief Executive of M/s. Pure Petroleum Products reveals his secrets of success in lubricant industry to Sri E Salahudeen, Tech. Supervisor & Special Correspondent, Vyavasaya Keralam.

E.S. : Mr. Padma Kumar, Hearty Congratulations to you for steering your venture successfully in the industrial field of the State.

K.P. : Thank you

E.S. : Mr. Kumar, can you please explain, what brought you to the industrial field ?

K.P. : The urge to utilize my talents for income generation to sustain my family and me. In the process, help others also in getting employment opportunities in my industrial venture.

E.S. : Can you explain, how you came to select the lubricant industry as your field of activity.

K.P. : Herein, I thank the services of the District Industries Centre and the dedicated team of officials. In my search for a project, I accidentally met a Technical Supervisor who guided me to District Industries Centre. A thorough interaction with the officials and other industrial friends, I was able to pin point the lubricant industry as a suitable one. I have also conducted a market survey and demand & supply study, which gave me confidence to start the industry.

E.S. : Can you highlight the present scenario of lubricant Industry in India ?

K.P. : The Indian market for lubricants has been estimated at Rs. 7000 crores. India is the sixth largest consumer of lubricants in the world and the third in Asia Pacific with a demand for 1 Million Tones per year. The performance of lubricants industry in recent years has been maintaining an up trend. Sales increased from Rs. 5745 crores in 97-98 to Rs. 6569 crores in 1999-2000. While the global market has been growing @ 2%, the Indian market has been increasing at 5%. This trend has been evident after the liberalization of the economy since early 90s. Taking advantage of this, lot of international blue chip companies like Caltex, Shell, Mobil, Esso entered into Indian market. Assessing the challenges of these companies, I, started M/s. Pure Petroleum Products in 1991. Since then the unit has been maintaining an up trend in business. During this period the unit under went many expansion and diversification programmes. The investment of the unit at the time of inception in 1991 was only 5 lakhs. Now the worth of the unit is estimated to be Rs. 2.00 crores including the investment in the ongoing modernization project at KINFRA Park, Trivandrum. I am producing ACTION brand lubricants.

E.S. : Will you please brief the performance of PSUs in this line ?

K.P. : Public sector companies like Indian Oil Corporation, Hindustan Petroleum Corporation, Bharat Petroleum Corporation and I B P together hold the major share of the Indian market. However, this has come down from around 55% in 1997-98 to 48% in 1999-2000.

This graph shows the performance of various companies during the fiscal 1997-98, 1998-99 and 1999-2000.

The market share analysis for the above three years shows that Multi National Companies (MNCs) are loosing markets due to the penetration of smaller companies with Quality products. With severe competition, market practices are also undergoing a sea change. Retail marketing through dealers has assumed greater significance. M/s. Pure Petroleum Products (P) Ltd. has opened 4 own outlets in the states of Tamil Nadu, Karnataka and Andhra during the last 5 years. The distributors in Kerala alone go upto 13 till last year.

E.S. : Mr. Padma Kumar, can you explain your financial and marketing strategies ?

K.P. : We have embarked on a strategic marketing alliance with the dealers by offering a Stake in the unit. While its 13 distributors in the State have together received a 24% share in the unit, key employees have together got a 5% share.

I am confident that this collaboration will create a sense of pride and responsibility to the employees and dealers, as owners. These stake holders are involved in all stages of operations of the company right from receipt of raw materials to the collection of revenues. This involvement on the part of distributors and key employees has contributed to the steady growth of the products of the company. We have acquired sufficient land at KINFRA Industrial Park, at Thiruvananthapuram and started implementation of a new fully automatic plant with a larger capacity. It is expected that the plant can be commissioned in a couple of months.

E.S. : Please recall when you have started this project and with what investment ?

K.P. : Well, we established this unit in 1991, with an investment of Rs. 5.0 lakhs on plant and machinery only.

E.S. : What are the products you are manufacturing now ?

K.P. : All types of automotive, industrial and specialty oils and greases. We are the only Lithium based grease manufacturing unit in the entire South India other than MNC’s.

E.S. : What was the sales turnover during previous financial year ?

K.P. : Approximately 2.0 crores in 2002-03.

E.S. : What are the future investments proposals in the pipeline ?

K.P. : The company has set for its eyes on exports to Sri Lankan and African countries after making a firm base in South Indian states.

E.S. : Mr. Padma Kumar, do you have any diversification proposals ?

K.P. : At present, No. Modernization programme is being carried out with an investment of 1.9 crore, which will be commissioned in 2004 in KINFRA Industrial Park, Trivandrum.

E.S. : What about standardization proposals of M/s. Pure Petroleum Products ?

K.P. : The company will soon achieve ISO 9001-2000 certification. The present constitution of proprietorship is being changed to private limited company and the name will be Pure Petroleum India Private Limited. We feel it is better to get ISO certification for the new company rather than making an effort for the existing unit.

E.S. : How do you differentiate your products from others ?

K.P. : The general trend among the multinationals and blue chip companies engaged in the world of lubricants is either to supply the raw materials to small scale units like us, which have the necessary infrastructure and the requisite technical expertise in the task of processing the lubes and grease or to buy their finished product and market it under their brand name. We are also involved actively in processing for multinational companies.

E.S. : What are the extra advantages of ACTION Lubricants over other competitive products?

K.P. : The manufacturing of grease and oils is not a magic. The source of lubes base Oils and additives are same for us and other oil companies. There are well accepted formulations for achieving the performance specifications fixed by international and Indian standardizing agencies. Like our competitors, we also follow the same. Our overhead expenditure are less, hence we are able to supply quality product at lesser prices.

E.S. : What is the secret of your success ?

K.P. : "Quality" while most companies compromise on quality to cut down the production cost, we refuse to tow the line. Our products speak for themselves. Indeed the fierce loyalty and appreciation of its clientele bear testimony to this fact.

E.S. : What is your advise for day dreamers ?

K.P. : There is no short cut to success. Patience and Perseverance are the roads to success.

Be in ACTION; SUCCESS is YOURS.

I did it with hard work, dedication and talent. I am sure that there is no substitute for hard work.

E.S. : Thank you for airing out views for the benefit of the readers of the Vyavasaya Keralam.

K.P. : Thank you