In a strategic move to consolidate its dominance in India’s fast-growing lubricant and speciality oil sector, Shell, which is also a key investor in mobility startup Rapido, has completed the acquisition of Raj Petro Specialities. This acquisition is set to significantly enhance Shell’s manufacturing capacity, product portfolio, and customer reach across industrial, automotive, and speciality chemical segments in India and the broader Asia-Pacific market.
Strategic Rationale Behind The Acquisition
Shell, one of the world’s largest energy conglomerates, has been expanding its downstream business aggressively, particularly in emerging markets. The acquisition of Raj Petro Specialities aligns with its goals of:
- Deepening market penetration: Expanding presence in industrial lubricants and speciality products.
- Diversifying product portfolio: Adding high-margin process oils, transformer oils, and industrial greases.
- Strengthening manufacturing footprint: Leveraging Raj Petro’s established facilities in Chennai, Silvassa, and Mumbai.
- Creating integrated solutions: Combining Shell’s global R&D with Raj Petro’s customer relationships and formulations expertise.
Raj Petro Specialities: Company Profile
Raj Petro, founded in 1942, is a leading Indian speciality petroleum products company with a strong customer base in the transformer oil, industrial lubricants, and rubber process oil segments.
| Particulars | Details |
|---|---|
| Founded | 1942 |
| Founder | Late V Rajagopal |
| Headquarters | Chennai |
| Key Products | Transformer oils, white oils, industrial lubricants, process oils |
| Manufacturing Units | Chennai, Silvassa, Taloja |
| FY23 Revenue | ₹1,450 crore |
| FY23 Net Profit | ₹122 crore |
Raj Petro exports to over 40 countries and supplies critical transformer oils to India’s major power utilities and global OEMs.
Shell’s Previous Stake and Full Acquisition
Shell initially acquired a majority stake in Raj Petro in 2018 to gain a foothold in the Indian speciality oils market. Over the past five years, Shell integrated Raj Petro’s R&D and operational processes to global standards.
With this full acquisition completed in 2025, Raj Petro will become a wholly owned subsidiary of Shell, streamlining management and expanding global market access for its products.
Global Context: Shell’s Downstream Strategy
The acquisition is part of Shell’s broader strategy to shift towards higher-margin downstream and renewable businesses amidst global energy transition pressures.
| Segment | Strategic Action |
|---|---|
| Upstream oil & gas | Gradual divestments and decarbonisation investments |
| Downstream fuels & lubricants | Expanding refining and speciality oil capacities in Asia & Africa |
| Renewables & EV charging | Investing in mobility startups (Rapido, Greenlots) and charging networks |
Impact on Indian Lubricant Market
India’s lubricant market is expected to grow at ~5.5% CAGR to reach ₹70,000 crore by 2030, driven by:
- Rising automotive sales, especially two-wheelers and commercial vehicles.
- Expanding industrial activity and manufacturing output.
- Higher demand for speciality process oils in rubber, plastics, and pharma industries.
Shell, already among India’s top five lubricant players, will now gain access to Raj Petro’s niche customer base, especially transformer oils and white oils, which have high entry barriers due to quality certifications.
Competitive Landscape
| Company | Market Position | Key Segments |
|---|---|---|
| Indian Oil Servo | Largest | Automotive & industrial |
| Castrol India | Strong | Automotive |
| BPCL MAK Lubricants | Major | Automotive & industrial |
| Shell | Expanding | Automotive, industrial, speciality oils |
| Raj Petro (Shell Subsidiary) | Niche leader | Transformer oils, white oils, process oils |
Growth Synergies Post Acquisition
- Manufacturing Synergies: Integration of Raj Petro’s Chennai and Silvassa plants with Shell’s existing supply chain to optimise production.
- R&D Synergies: Raj Petro’s R&D centre in Chennai will leverage Shell’s global formulation expertise for next-generation speciality products.
- Distribution Synergies: Shell’s pan-India automotive distributor network will boost Raj Petro’s market reach, while Raj Petro’s OEM relationships will benefit Shell’s industrial portfolio.
Expert Views
- Ravi Ghosh, Oil & Gas Analyst, JM Financial:
“The acquisition strengthens Shell’s value-added products portfolio. With India’s power sector upgrades and transformer installations growing annually, Shell-Raj Petro can capitalise on reliable transformer oil supplies.” - Suman Jain, Director, India Lubricants Association:
“Raj Petro’s strong relationships in eastern and southern India, combined with Shell’s global credibility, could challenge incumbents in niche segments.”
Financial Impact
While Shell does not disclose India-specific downstream financials, analysts estimate:
| Metric | FY23 (combined) |
|---|---|
| Revenue | ₹6,000 crore |
| EBITDA | ₹520 crore |
| Market Share | ~10% (combined automotive + industrial + speciality) |
Broader Energy Transition Linkages
Shell is also a prominent investor in Indian mobility and energy transition startups, such as Rapido (bike taxi and hyperlocal delivery platform), where it invested in 2022 to strengthen last-mile decarbonised mobility options.
The acquisition of Raj Petro complements Shell’s Indian energy portfolio spanning:
- LNG and gas marketing
- EV charging networks
- Lubricants and speciality oils
- Mobility and logistics platforms
Future Outlook
Post-acquisition, Shell plans to:
- Expand Raj Petro’s exports to Africa, Southeast Asia, and Europe.
- Develop environment-friendly transformer oils aligned with net-zero targets.
- Strengthen localised production of speciality greases for India’s industrial sector.
- Build integrated mobility and energy solutions combining fuels, lubricants, and EV charging for fleet customers.
Conclusion
Shell’s full acquisition of Raj Petro Specialities marks a decisive move to cement its leadership in India’s lubricant and speciality oils market. The combined entity will leverage deep local market expertise and global technological strengths to offer comprehensive solutions, accelerating Shell’s downstream growth in India while supporting its global decarbonisation strategy.
Disclaimer: This news report is for informational purposes only and does not constitute investment advice, recommendation, or an offer to buy or sell any securities. Readers are advised to consult certified financial advisors and refer to official company filings and announcements before making any investment decisions. The publication is not responsible for any business or investment decision taken based on this report.
