The agreement is aimed at strengthening the downstream industrial ecosystem and enhancing local content. Under the agreement, APAR will supply base oils within the LubeHub Value Park in Yanbu.
The arrangement enables APAR to produce its flagship transformer oils along with a range of other specialty oils. The company said the signing was carried out in support of downstream growth and development at LubeHub.
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This month, Apar Industries Chairman and Managing Director Kushal Desai said he expects its profits to at least double over the next four to five years as it expands capacity, grows its cable business, increases its presence in the US market and benefits from rising investments in power transmission and data centre infrastructure,
The company, which closed the last financial year with revenue of around ₹23,500 crore, is targeting annual revenue additions of ₹4,000-5,000 crore through a combination of organic growth and fresh capacity. Desai said Apar is aiming for at least 15% annual growth over the coming years.
“Am I being conservative? No, not conservative, but I think, you know, I mean, if everything goes well, then we should be seeing, you know, at least we should double our profits in the next four to five years,” he said.
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A key driver of this growth is the company’s cable business, where Apar is targeting 25% annual growth over the next five years. To support this expansion, more than half of the company’s planned capital expenditure is being directed towards increasing cable manufacturing capacity.
The company is investing heavily to prepare for the next phase of growth. After investing about ₹700 crore last year, Apar plans to invest another ₹1,500 crore over the next 18 months, taking total investment to roughly ₹2,200 crore. According to Desai, this capacity expansion should help the company build a significantly larger revenue base over time.
The US market is another major focus area. Desai said Indian companies now enjoy better access to the US transmission and distribution market than many Chinese competitors, particularly in areas linked to power infrastructure and data centres. Apar generated roughly ₹1,600 crore in revenue from the US last year and expects that figure to rise steadily as its presence strengthens.
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Shares of Apar Industries Ltd ended at ₹16,136.05, down by ₹139.95, or 0.86%, on the BSE.
