Valvoline rolls out 'fluid management' solution

Valvoline Cummins Limited (VCL) has been confronted by the same problem that its competitors face in the lubricants industry, namely next generation vehicles call for better quality lubricants. Such long drain fluids may boost margins in the short run, but for that very reason will ultimately undermine volume.
Rather than fight the inevitable, the joint venture between Valvoline International Inc., a wholly owned subsidiary of U.S.-based Ashland Inc., and Cummins India Limited, has come up with an out-of-the-box idea. “Fluid management” may seem like a generic term, but it is a concept that packages engine oils, transmission oils and differential oils in standard barrel sizes of 210 liters. Sandeep Kalia, CEO, VCL, stated that his company intends to boost overall volumes by offering customers a variety of lubricating oils.
If the initiative takes off, VCL expects over the next two to three years to see its market share in the commercial vehicle lubricants market climb to 10% from the current 8%. VCL has been working with 200 large and small fleet operators for the last eight to nine months now to drive home the “fluid management” concept.
The bulk purchase also provides a small price benefit. Lubricant specifications are generally similar across the medium and heavy commercial vehicle (MHCV) market; therefore VCL’s products can easily find a large market. “About 60-70% of the market is controlled by Tata Motors and so it is easier for us to reach out to large operators with standardized products,” Kalia said. “The target is to convert about 1,000 fleet operators within a year,” he said.
Moreover, VCL will offer a host of value-added services under a win-win deal. The Valvoline Progressive Oil Sampling Test (POST) is a case in point. Under this program, fleet operators send oil samples to the Valvoline lab and receive detailed results and a recommendation for actions to take. For instance, oil-drain intervals may be optimized by monitoring fluid quality.
An opportunity is also opening up with infrastructure developers, who need a large quantity of lubricants for their fleet of construction equipment deployed in remote locations.
Based on an oil introduced by Valvoline for older passenger cars in the U.S., Max Life Diesel is suitable for aging commercial vehicles too. Typically, older engines consume more oil due to a greater degree of wear and tear, and therefore need better lubrication.
The Max Life Diesel oil with drain intervals of up to 40,000km has been developed for commercial vehicles that have clocked more than 100,000km. The oil contains special ingredients that help seal worn out parts, thereby postponing overhauls. VCL piloted this concept with off-road mining trucks.
(April 17, 2013)