BP Mulls Castrol Sale: What Could This Mean For India’S Lubricants Market?

BP is reportedly exploring the sale of its lubricants division, Castrol, in a move that could fetch around $10 billion. This potential divestment is part of BP’s broader strategy to regain investor confidence after years of underperformance. Activist inves tor Elliott Investment Management, which holds a $4.7 billion stake in BP, has been pressuring the company to streamline oper ations and divest non-core assets.

The announcement came as early as BP’s Capital Markets Day on February 26, though no final decision has been made. An alysts estimate Castrol’s valuation at $8-10 billion based on its $1 billion EBITDA. The sale, if executed, would significantly impact the global lubricants market, particularly in India, where Castrol holds a strong presence.

Beyond lubricants, BP is restructuring its portfolio by selling clean energy assets, in cluding offshore and onshore wind projects, and seeking partners for its solar and battery storage unit, Lightsource BP. The company has also scaled back its renewable energy commitments, realigning its focus toward traditional oil and gas operations.

Castrol, a globally recognized brand operat ing in over 150 countries, has a strong foot hold in automotive, industrial, and marine lubricants. It has also expanded into liquid cooling solutions for data centers and main tains high-profile sponsorships in motor- sports and the NBA.

The potential sale could reshape competition in the lubricants industry, with major players like Saudi Aramco rumored to be interest ed in acquiring the brand. As BP navigates this transition, industry observers are closely watching how this move will influence global and Indian lubricant markets.