Financial Daily from THE HINDU group of publications
Thursday, Mar 27, 2003
Financial Daily from THE HINDU group of publications Thursday, Mar 27, 2003 |
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Marketing
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New Products & Services German oil major OWS unveils range of products Our Bureau
CHENNAI, March 26 OWS of Germany, which manufactures engine oils, gear oils, industrial oils, hydraulic oils and additives, launched its products in India on Wednesday. The company says that if volumes pick up as anticipated, it will consider importing the additives and engine oils in bulk, and packaging them here rather than importing them as fully packaged products, as is being done now. According to Mr Klaus Bosshammer, President, OWS, it will take anything from a year to a year-and-a-half to penetrate the Indian market, on whose potential he has high hopes. The company hopes to sell 2.5 lakh-three lakh cans of additives in 2003 in India and he expects this figure to reach ten-thirty lakh cans in the next two-three years. Likewise, for engine oils, OWS hopes to be able to sell 10 to 50 lakh litres in the next two-three years. If this volume is reached, OWS will consider importing the additives and engine oils in bulk and packaging them locally, he told Business Line. This will make the products cheaper as the import duty, which is now 70 per cent, will come down. He, however, rules out local manufacture of the additives and engine oils as the formula will not be divulged. Earlier, addressing a press conference to announce the launch of the products, Mr Bosshammer expected the South-east Asian market to contribute significantly to the company's sales. The German market was saturated and did not hold much potential. OWS hoped to begin selling the additives and oils in China shortly and in Australia, within two months. He said that OWS had a large operation in the Philippines where it sold five lakh litres of engine oil. Its Singapore operations accounted for 80,000 litres of engine oil and 40,000 cans of additives. He expected the Singapore operation to pick up as the company had got a contract for 30,000 litres of engine oil a month. Mr Bosshammer said the engine oils had been approved by DaimlerChrysler, Volkswagen and BMW in Germany, and OWS hoped to get approval from car manufacturers in India too. Mr K.D. Madan of Speedworks, Chennai, which will import and distribute OWS products, said that a lot of road tests had been done with OWS products. He said the market in India for these products was huge and the response to the products had been good.
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