Gujarat Speciality Lubes Limited was set up to manufacture Lubricating Oils of Industrial, Automotive and Speciality Grades through the process of Recycling of Waste Oils. This project, especially the process adopted by the company, at the time when the project was envisaged, in a sense, commanded a special patronage of government as per the then prevailing industrial policies. The products manufactured through this process enjoyed 100% Excise Duty Exemption and its key ingredient, Imported Waste Oil was under Open General License category. These policies were reversed by the time the project was fully commissioned and these benefits were withdrawn leaving the company no option but to adopt a different route to manufacture the same products and also diversify into Castor oil derivatives of specific grades by suitably modifying the production facilities.

Inspite of such severe impediments, company re-commissioned its plants with new vigour and started its commercial production, although at a much slower pace than envisaged, due to substantial erosion of its working capital funds as a result of longer than anticipated gestation period and also due to the diversification expenditure incurred.

Undeterred by all the odds, company successfully penetrated the Lubricants market in the face of stiff competition from leading multinational brands and could establish a strong foothold with its nationwide network of stockists, dealers and distributors.

However, erosion in working capital funds coupled with mounting interest burden of secured borrowings was adversely impacting the sales of the company, resulting in losses. All of these, put together, eventually, drove the company into sickness.  Company was declared sick by Hon’able BIFR based on its Balance Sheets dated 31st March 2000.

Unrelenting efforts and perseverance of the management of the company helped the company to come out of sickness by 1st July 2014 with all its secured creditors fully paid off and company having become virtually debt free.