shrm final report

7/21/2019 SHRM Final Report

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Case for StrategicHRM at Castrol

India LimitedSubmitted by Soumitra Bengeri (F006


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Abstract:

Castrol India Limited is an automotive and industrial lubricant manufacturing company. Castrol

India is the 2nd largest manufacturer of automotive and industrial lubricants in the Indian

lubricant market and owns around 22% market share in the overall Indian lubricant market. It is

part of Castrol Limited UK part of !"#roup$. It has manufacturing plants that are networkedwith 2&' distributors( serving over &'(''' retail outlets

Castrol offers lubricants for virtually all domestic( commercial and industrial applications. )or

automotive lubrication including motorcycles 2*stroke and +*stroke engines( car petrol and

diesel engines$( Castrol products include an e,tensive range of manual and automatic

transmission fluids( chain lubricants and wa,es( coolants( suspension fluids( brake fluids(

greases( cleaners and maintenance products. Castrol also produces products for agricultural

machinery( plant( general industry and marine engineering uses. -ll their products have a global

chemical registration status and meet compliance in all locations where the product is used.

-utomotive lubricants developed for consumers( supplying lubricants( specialities gearoils( greases and other ancillary products$ and services to cars( motorcycles( commercial

vehicles( including heavy duty consumer trucks( mining and agriculture vehicles

-viation( industrial( marine and energy lubricants developed for the business to business

community( supplying solutions to the manufacturing( mining( shipping( aviation and oil

and e,ploration industries. Castrol global business operations provide worldwide

assurance( improved productivity( improved environmental products and trusted advice

focused on optimi/ing our customer0s production processes.

-t the forefront of pioneering technology are their 1 345 centers globally( where they develop

and test hundreds of new products every year. Castrol works closely with leading industry678s( with whom they supply a broad range of lubricants designed for particular operating

conditions and environments. 8any of Castrol products are recommended by and co*engineered

with ma9or 678s( including -udi( !8:( )ord( 8-;( olvo( ?eat( ?koda( @ata

and >olkswagen( for their Anew to the world0 powertrains.

Strategic Focus:

)or Castrol India( the five years between 2'' and 2'1' were like a dream run( riding on the

back of the growth of the Indian economy which helped fuel higher demand for automobiles.

CastrolBs revenues grew at an average 1+*1%( while profits vaulted to an annualised average of

'% * tripling in five years.

It was at the start of 2'11 that the company felt something was amiss. In 2'11 two things started

to happen. @he economy( which was growing at close to *.% in )D11 slowed down to E*E.%

in )D12. ?econdly( the cost of base oil( which is the principal ingredient( increased dramatically

by almost '%.

!
http://en.wikipedia.org/wiki/Castrolhttp://en.wikipedia.org/wiki/BPhttp://en.wikipedia.org/wiki/BPhttp://en.wikipedia.org/wiki/Castrol


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@he company was able to meet the challenges sFuarely as it closed calendar year 2'11 with

barely a marginal decline in profits thanks to its strong brand( best in the class distribution

network and a track record of innovation.

@his meant a lot of research on price elasticity of demand for its products and how much of cost

increases it could pass on to consumers. @he company also refocused on its relationship withdealers and mechanics( who can advocate which brands to use. @he management also decided to

strengthen the companyBs distribution since demand from rural India was growing strong.

CastrolBs efforts to stay ahead of the technology curve by launching newer and better products

consistently has also helped. It also chose not to apply the brakes on its advertising and brand*

building e,ercises. In 2'11( Castrol became a global partner to International Cricket Council

ICC$ to foster its long*standing association with IndiaBs most followed sport.

Key Trends

Fall in Global Crude Prices: -ssuming the government funds E' per cent of the fuel subsidy

burden in )D1E 3s.1E(2'' crore$( successful implementation of the modified 5irect !enefit@ransfer 5!@$ program is likely to help cut the government0s fuel subsidy burden further by

over E per cent by )D1. 6il marketing companies will then turn out to be medium to long*term

gainers as the 5!@ program gains traction. ?tocks of oil ma9ors( which have almost doubled in

the last a few months are set for further gains.

Significant change in HR Policies after BP il S!ill: @he !" 6il spill and the subseFuent

effect on the brand value of the company have affected the


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coaches. It also launched the Castrol Learning -cademy which incorporates internal and e,ternal

best practices and is based on a philosophy that development is a function of learning( e,perience

and application on the 9ob.

@he year also marked the launch of ?-" within your Company to support the automation of


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eadershi! -e&elo!#ent:

!uilding both( people and functional capability is one of the key elements of our investment in

people. Last year( the Company took concrete steps to embed !"0s global leadership framework

that reFuires leaders to demonstrate capabilities in managing culture( performance( talent and

development. )urther( this year( the capability calendar was designed to look at the leadershipdevelopment reFuirements around different stages of an employee0s career( vi/ G ;ew =oiners(

Leading ?elf( Leading 6thers( Leading 8anagers and Leading a )unction or !usiness. 5iscover

!"( "reparing to Lead(

Leading the !" :ay( 3esponsible Leadership( Leading the Charge were some of the key

leadership development programs successfully implemented by the Company this year.

-i&ersity and +nclusion:

-s a part of a large multinational group( Castrol wants the workforce to represent the societies in

which it operates. Company0s commitment to 5iversity and Inclusion enables it to be creative(

competitive and thrive in our environment. Improving gender diversity continues to be the focusarea for the Company and has taken several initiatives like "3I?8( -gile :orking and ran

various empowering and educational events through our International :omen0s network

!":I;$. :orkshops were also held to eFuip managers with knowledge and skills to manage a

multigenerational workforce and enable women to succeed in the workplace. 3efresher courses

on 5iversity 4 Inclusion were also held. !oth in the industry and outside( !" has been

recogni/ed for its work on gender diversity. It has been awarded a citation as an 7mployer

Conclusion:

In an ever growing competitive industry of 6il and #as( Castrol seems to be taking all the right

steps in ensuring that it becomes the preferred employer of choice for people wishing to 9oin thesector. :ith a low attrition rate the best across the industry$ and great employee engagement(

Castrol has ensured that it uses all the ?trategic

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