Imited 2019 Castrol India Limited Annual Report 2019 Mited 2019
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Castrol India Limited India Castrol Castrol India Limited Annual Report 2019 Report Annual Annual Report 2019 Castrol India Limited Annual Report 2019 - Overview 1 Annual Report 2019 Castrol India Limited Annual Report 2019 Report Annual Annual Report 2019 Annual Report 2019 Annual Report 2019 Castrol India Limited India Castrol Castrol India Limited Castrol India Limited Castrol India Limited Castrol India Limited India Castrol Castrol India Limited Annual Report 2019 Report Annual Annual Report 2019 Castrol India Limited Annual Report 2019 - Overview CORPORATE INFORMATION BOARD OF DIRECTORS Sandeep Sangwan REGISTERED OFFICE Managing Director R Gopalakrishnan (w.e.f. 1 January 2020) Technopolis Knowledge Park, Independent Director, Chairman Mahakali Caves Road, (Chariman w.e.f 1 October 2019) Rashmi Joshi Andheri (East), Chief Financial Officer & Wholetime Director Mumbai 400 093, India. S M Datta Independent Director, Chairman Jayanta Chatterjee CIN: L23200MH1979PLC021359 (up to and including 30 September 2019) Wholetime Director - Supply Chain Tel: +91-22-6698 4100 Uday Khanna Fax: +91-22-6698 4101 Independent Director COMPANY SECRETARY & [email protected] COMPLIANCE OFFICER Sangeeta Talwar www.castrol.co.in Independent Director Chandana Dhar Rakesh Makhija Independent Director AUDITORS (w.e.f. 1 October 2019) REGISTRAR AND Deloitte Haskins & Sells LLP. TRANSFER AGENT Sashi Mukundan Chartered Accountants Nominee Director Link Intime India Private Limited C-101, 247 Park, A S Ramchander LBS Marg, Vikhroli West, Nominee Director Mumbai 400 011, India. (w.e.f. 29 April 2019) BANKERS Deutsche Bank Tel: +91-22-4918 6000 Mark Josceline Sclater Fax: +91-22-4918 6060 Nominee Director HDFC Bank Ltd. Toll-free number: 1800 1020 878 (w.e.f. 16 May up to and including The Hong Kong & Shanghai Banking 6 December 2019) Corporation Ltd. [email protected] Peter Weidner State Bank of India www.linkintime.co.in Nominee Director Citibank N.A. (up to and including 31 January 2019) DBS Bank Ltd. Omer Dormen J P Morgan Chase Bank N.A. Managing Director (up to and including 31 December 2019) Standard Chartered Bank CONTENTS OVERVIEW REPORTS FINANCIALS Message from Managing Director 01 Management Discussion and Balance Sheet 92 Board of Directors 02 Analysis Report 10 Statement of Profit and Loss 93 Leadership Team 03 Financial Highlights 19 Cash Flow Statement 94 Strong Brands 04 Board’s Report 21 Notes to Financial Statements 97 Enduring Partnerships 07 Corporate Governance Report 50 Awards and Accolades 08 Business Responsibility Report 71 NOTICE FOR ANNUAL Our Social Responsibility 09 Auditor’s Report 83 GENERAL MEETING 134 2 Castrol India Limited Annual Report 2019 - Overview MESSAGE FROM MANAGING DIRECTOR Dear shareholders, I would like to begin by saying how generated from operations increased privileged and honoured I am to write by 25% to INR 1,188 crore, driven by to you as Managing Director of the robust working capital management. Castrol India business. I am aware of the enormous responsibility it brings as the This year also saw us explore new Castrol brand enjoys the deep trust of business models beyond lubricants. Indian customers and consumers, having These included vehicle care co-branded spanned a legacy of over a century in this products like bike and car shampoos, country. Every day, each member of our glass cleaners, cream waxes, dashboard team, be it in the offices, plants or on the and tyre dressers. Similarly, we frontline, strives to strengthen this trust - experimented with advanced mobility through our best in class safety standards, solutions such as improved internal pioneering and innovative technology, combustion engine technology, superior quality products and premium hybridization and e-fluids, including for customer experience. diesel engines, to decarbonize transport now, and in the future. We also found All this in a volatile, uncertain, new channels to enhance our visibility ambiguous and complex business and reach, with the proposed fuels environment. While this offers us and mobility alliance between BP and challenges, it also pushes us to set new Reliance Industries. This gives us the benchmarks and standards not only opportunity to market lubricants across for ourselves, but also for the industry. its retailing network. Our BS VI ready lubricants across a range of categories, our carbon neutral While we grow and transform as a offerings for customers, and Castrol business, our responsibility towards Fast Scan, a unique incentive platform society continues. Our programmes to drive financial and digital inclusion aimed at building sustainable at grassroots aimed at mechanics and livelihoods and pride among truck retailers, are some strong examples of drivers and mechanics, have positively this leadership. impacted their lives and their families. These challenges also spur us to Through all these efforts, we are be resilient. During the economic committed to prepare your company for slowdown of 2019, we clocked revenue the future and deliver sustainable value growth in personal mobility, which is a for our various stakeholders, including strategic priority, and delivered strong yourselves. We continue to rely on your operating performance and earnings. whole-hearted support as we pledge Profit from operations grew 7% year on to drive your company to a bigger year at INR 1,083 crore while cash tomorrow of performance and success. Sandeep Sangwan Managing Director 1 Castrol India Limited Annual Report 2019 - Overview BOARD OF DIRECTORS R Gopalakrishnan Uday Khanna Sangeeta Talwar Independent Director Independent Director Independent Director & Chairman Rakesh Makhija Sashi Mukundan A S Ramchander Independent Director Nominee Director Nominee Director Sandeep Sangwan Rashmi Joshi Jayanta Chatterjee Managing Director Chief Financial Officer & Wholetime Director - Wholetime Director Supply Chain 2 Castrol India Limited Annual Report 2019 - Overview LEADERSHIP TEAM Sandeep Sangwan Maria P Valles Rajeev Govil M A Mubeenuddin Managing Director Vice President - Human Vice President - Workshop Vice President - Indirect Sales Resources & OEM Sales Rashmi Joshi Sagar Vira Ramesh Srinivasan Bhairavi Popat Chief Financial Officer Vice President - Heavy Vice President - HSSE Vice President - Customer & Wholetime Director Duty and Industrial Sales Excellence and Operations Jayanta Chatterjee Bindu Jayraj Kedar Apte Wholetime Director - Head - Communications Vice President - Marketing Supply Chain Rajesh Madathingal Siddharth Shetty Head - Technology Managing Counsel 3 Castrol India Limited Annual Report 2019 - Overview STRONG BRANDS Castrol Activ extended the brand proposition of ‘protecting what you love’ to India’s general elections. The campaign appealed to youth to protect democracy by ferrying voters on their two-wheelers to polling booths. Castrol GTX ULTRACLEAN with 50% superior sludge protection compared to tough industry standards* was launched across 20 markets. *50% cleaner than the industry standard as measured in the Seq. VG Sludge test Castrol Super Mechanic contest aimed at skill building and recognition for the mechanic community, saw over New Castrol Activ ESSENTIAL was launched, extending the Castrol 1.28 lakh mechanic participants and was televised in a Activ range to new price segments. game show format. 4 Castrol India Limited Annual Report 2019 - Overview STRONG BRANDS A new category of lubricants, Castrol MAGNATEC SUV was launched, catering to the fast increasing SUV population. Castrol POWER1 lubricants teamed up with California Castrol POWER1 tied up with Team xBhp to power Superbike School, a renowned motorcycle training school, to their engines for an Asian Odyssey. The odyssey saw demonstrate the high performance of Castrol lubricants on 12 riders cross 11 countries, covering 11,000 kilometres gruelling race track conditions. over 90 days. Deep engagements were conducted with over one lakh truck owners, mechanics and retailers across the country educating them on latest technology engine oils and specialty offerings. 5 Castrol India Limited Annual Report 2019 - Overview STRONG BRANDS Building on the Castrol CRB TURBOMAX brand proposition of a long A specially curated set of yoga postures - Castrol CRB and healthy engine life, Transform Truckers Abhiyaan, in association with PLUS Khet Aasana was introduced for the well-being a media house, was launched and ran across 13 states in India focusing of farmers across India, following the success of Castrol on truckers’ health. CRB TURBOMAX Truck Aasana for truckers. Continuing the Castrol CRB PLUS brand engagement in the hinterlands, Extending the CI4 offering to a new price segment, Castrol over 1,30,000 tractor owners in villages, small local markets and retail RX ESSENTIAL 15W-40 commercial vehicle oil suitable for outlets across key agricultural states were engaged. all OEMs who recommend API CI4, was introduced. Castrol RADICOOL ESSENTIAL range of coolants, which provide protection against overheating and corrosion to engines in warmer climates, was unveiled. 6 Castrol India Limited Annual Report 2019 - Overview ENDURING PARTNERSHIPS Castrol India Limited inked a partnership with Honda Motorcycle Castrol India Limited signed a strategic agreement with Renault & Scooter India Private Limited to launch Castrol Activ Honda India Private Limited for supply of exclusive aftersales engine oil range of lubricants exclusively for their two-wheelers. lubricants across Renault India’s countrywide network. Castrol India