Sundrex Oil Company Limited is an Indian lubricant manufacturer engaged in producing and supplying industrial lubricants, metalworking fluids, greases, transformer oils, white oils, and automotive lubricants. The company earns revenue through direct sales to private industries, public sector undertakings (PSUs), exports, and contract manufacturing. Its products are widely used in machinery maintenance, automotive engines, power transformers, metal processing, and industrial equipment across multiple sectors.

Key Clients and Manufacturing Facilities

The company serves a diversified B2B client base comprising private industrial customers and PSUs, with private clients contributing about 88–91% of revenue and PSUs around 9–12%. Sundrex operates manufacturing facilities for lubricating oils, transformer oils, greases, metalworking fluids, and white oils. Its facilities are ISO 9001:2015 certified and BIS-approved, ensuring consistent quality, regulatory compliance, and scalable production capabilities.

Product Portfolio, Order Book and Execution

Sundrex offers over 62 product categories and 516 approved products on GeM, covering the full lubrication lifecycle from installation to maintenance and replacement. Its portfolio supports recurring demand due to regular lubricant replacement cycles. The company executes orders through tender-based PSU contracts, private sector orders, and contract manufacturing, ensuring steady order inflow and efficient execution through standardized production and dispatch systems.

Mergers, Capex and Expansion Plans

Sundrex acquired OPRS Enterprises Pvt. Ltd. to strengthen downstream distribution and commissioned Ecolixir Greentech Pvt. Ltd. for base oil re-refining and EPR compliance. Key expansions include increasing white oil capacity to 100 KL/day, commissioning LLP-IP grade plants, and entering Middle East export markets. These initiatives support vertical integration, regulatory compliance, cost efficiency, and long-term capacity-led growth.

Employees and Banker

As of June 30, 2025, the company had 73 employees. The Banker to the Company is Kotak Mahindra Bank Limited.

Management and Growth Vision

Sundrex is led by an experienced promoter-led management team with over a decade of industry presence. Management focuses on expanding PSU approvals, strengthening private industrial sales, increasing exports, and leveraging subsidiaries for vertical integration. Near-term growth targets include capacity utilization improvement and product expansion, while long-term goals focus on sustainability, EPR compliance, and margin enhancement. Capex is planned to be funded through IPO proceeds, internal accruals, and banking facilities.

Industry Overview

Sundrex operates in the lubricants and industrial oils industry, serving automotive, manufacturing, power, mining, and infrastructure sectors. The Indian lubricant market is estimated at ~3 million metric tonnes, growing at 5–6% CAGR, driven by industrialization and vehicle growth. Globally, the lubricant market exceeds 40 million metric tonnes, with steady growth of 3–4% annually. Major global players include Shell, BP, and ExxonMobil, while India has strong PSU and private participants.

Key Risk Factors

1. Raw Material Price Volatility
   Fluctuations in base oil and additive prices may impact production costs and margins, as pricing power is limited in competitive tender-based and industrial supply contracts.
2. Trade Receivables Risk
   High reliance on B2B clients results in significant trade receivables. Delays or defaults could impact cash flows, liquidity, and working capital efficiency.
3. Customer Concentration Risk
   A large portion of revenue is derived from industrial and PSU customers. Any reduction in orders or tender losses could adversely affect revenue stability.
4. Regulatory and Compliance Risk
   Non-compliance with GST, EPR norms, or environmental regulations could lead to penalties, operational disruptions, or increased compliance costs.
5. Litigation Risk
   Ongoing legal proceedings related to cheque dishonour and receivables recovery may affect cash flows and require management attention.
6. Operational Execution Risk
   Delays in capacity expansion, equipment breakdowns, or labour disruptions could impact order execution timelines and customer relationships.

Key Strengths, Moat and Opportunities

1. Diversified Product Portfolio
   With over 62 product categories, Sundrex addresses multiple industries, reducing dependence on a single segment and ensuring stable demand across economic cycles.
2. Strong PSU and GeM Presence
   A wide GeM-approved product base enhances tender win probability and ensures recurring government business with predictable volumes.
3. Vertical Integration through Subsidiaries
   Ecolixir Greentech strengthens raw material security and EPR compliance, while OPRS enhances distribution reach, improving margins and supply chain efficiency.
4. Scalable Manufacturing Infrastructure
   ISO and BIS-certified facilities with recent capacity expansions enable efficient scaling without proportionate cost increases.
5. Export Growth Opportunities
   Entry into Middle East markets and prior exports to Nepal and Bhutan create opportunities for higher-margin international growth.
6. Recurring Demand Nature
   Lubricants require regular replacement, ensuring repeat orders and long-term customer engagement across industrial and automotive applications.