Pennzoil will not compete with those oil majors who have tied up with petrol pumps, company managing director Vivek Chandra said. Instead, it will appoint more retail dealers across the country, with the twin focus of ensuring wide availability while simultaneously generating wide demand. Pennzoil's dealer network comprises 750 dealers, which will rise to 1,000 by December 1999, Chandra said.

Chandra, who was in Pune recently in connection with a series of dealer meetings being held across the country, said the company's turnover in the next five years would touch the Rs 300-crore mark. It expects to achieve a market share of about 8 per cent, and sell 50,000 kilo litres (kl)of lubricants annually. Market leader Castrol with a turnover of Rs 900 crore was so far ahead that Pennzoil will have to be content with second position in 2002, he said.

The Rs 5,500-crore domestic lubricant industry, which at present has about 32 players, is fragmented with several firms having market shares of up to 2 per cent. Chandra said that market shares will decide the future and although a shakeout in the industry was imminent, it will not mean closing shop by any of the players. However, some firms will become niche players, catering to regional or product specific markets, while a handful of companies will have a national presence, mainly through petrol pumps, if the sector is opened up.

Pennzoil recently launched its marine and diesel product range. The marine lubes are targeted at the outboard motor vessels and trawlers. The company has a major share of the heavy commercial vehicle (HCV) and light commercial vehicle (LCV) markets, followed by two wheelers and cars. The company's presence isfocused on the non-industrial segment, which accounts for 90 per cent of its production.

Pennzoil's Turbhe plant has recently been upgraded and modernised at an investment of Rs 16 crore. It now has automated filling lines, allowing it to meet its estimated market demand. The company is also pushing its products as a premium brand, with the marketing strategy driven by its positioning as a performance oil. The advertising budget will be triple the ad spend of 1997-98, while the campaign will be run selectively in the regional and vernacular media, he added.