GANDHAR OIL REFINERY

About the Company 

  • Incorporated in 1992, GORIL is a Mumbai based company known for its production of specialty oil. The company is majorly engaged in manufacturing of white oils which have applications in consumer and healthcare industries. 
  • Further, the company is also engaged in production of other specialty oils and lubricants such as automotive oils, industrial oils, transformer oils and rubber processing oils. 
  • The company operates two plants – Taloja (capacity of 2,18,256 KL) and Silvassa (capacity of 1,43,853 KL)

Extensive industry and promoter experience with diversified client portfolio 

  • The group has nearly three decades of experience in the specialty oil industry and is known for its presence in the industry at both domestic and international forums. 
  • The company was started by Mr Ramesh Parekh, Chairman, who is now supported by his sons Mr. Samir Parekh, and Mr. Aslesh Parekh. 
  • The group also caters to a reputed clientele base in more than 100 countries, including the UAE, Brazil, the USA, Europe, and Asia with nearly 40% of revenue being derived from international sales. Further, revenue is diversified across Personal care, Healthcare and Performance oil (PHPO) segment having ~ 52% of FY24 revenue, Lubricants ~ 31%, Process Insulating Oil (PIO) ~ 7% and channel partners ~ 10%. Some of its clients include Unilever, Proctor & Gamble, Marico, Dabur, Emami, Indian Railways, State Electricity Boards, and Discoms. 
  • The company also has established relationships with its suppliers wherein it has entered into supply contracts with large international as well as domestic oil refineries such as Saudi Aramco, S-Oil Corporation, BPCL, and HPCL, respectively. 

Susceptibility to volatility in raw material prices , exposure to forex risk and global disruptions 

  • The key component in manufacturing specialty oils and lubricants is base oils which forms nearly 80 percent of the groups’ raw material costs. 
  • It is a derivative of crude oil, produced by refining crude, and therefore susceptible to volatility in crude oil prices. However, the group holds the requisite quantity of inventory and has ‘pass through’ clauses in the contracts with the customers to mitigate the risk of volatility in commodity prices, thereby protecting its margins. 
  • The group is also exposed to significant forex risk and global disruptions as it imports 85 percent of its raw materials and overseas sales accounts for 40 percent of the revenue. 
  • While some of the foreign exchange risk is mitigated through a natural hedge balanced is managed through hedging.

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