Gilbarco Veeder-Root, a Vontier Company, Secures Back-to-Back Large India Tenders

Rhea-AI Summary

Gilbarco Veeder-Root (GVR), a Vontier company (NYSE: VNT), has secured a $27 million tender from Indian Oil (IOCL) for retail fuel dispensers and services. This follows a $59 million tender with Hindustan Petroleum (HPCL) announced last month. The IOCL deal includes $17 million in equipment and $10 million in services over eight years.

GVR will deliver products across IOCL's retail sites in India over the next 12 months. The company has been present in India since 1955 and operates a manufacturing facility in Coimbatore. Additionally, Invenco by GVR recently opened a software development center in Bengaluru, demonstrating Vontier's long-term commitment to the Indian market.

Positive

• Secured a $27 million tender from IOCL for dispensers and services
• Won a $59 million tender with HPCL last month
• Expanding footprint in India's growing mobility ecosystem
• Long-term service contract with IOCL for 8 years
• Established presence in India since 1955 with local manufacturing capabilities

Negative

• None.

Financial Analyst

This $27 million tender from IOCL represents a significant win for Gilbarco Veeder-Root (GVR) and its parent company Vontier. The deal, comprising $17 million in equipment and $10 million in services, not only boosts GVR's revenue but also secures a long-term service contract. Coming on the heels of a $59 million tender with HPCL, this demonstrates GVR's strong market position in India's rapidly growing fuel retail sector. The eight-year service component is particularly noteworthy, as it provides a stable, recurring revenue stream. This contract, along with GVR's manufacturing presence in Coimbatore and Invenco's new software center in Bengaluru, positions the company well to capitalize on India's infrastructure expansion plans. For Vontier investors, this represents a positive trend in capturing market share in high-growth emerging markets.

Market Research Analyst

GVR's success in securing back-to-back tenders in India signifies a strategic market penetration in one of the world's fastest-growing economies. India's ambitious growth goals translate to a massive expansion of its fuel retail infrastructure, presenting a substantial opportunity for GVR. The company's long-standing presence since 1955 and local manufacturing capabilities give it a competitive edge. The recent tenders, totaling $86 million, indicate a potential trend of increased spending by Indian oil majors on modernizing their retail networks. This could lead to a sustained demand for GVR's products and services in the coming years. The expansion of software development capabilities in Bengaluru also suggests GVR is positioning itself for the digital transformation of the fuel retail sector, potentially opening up new revenue streams in the future.

$27 million tender secured for dispensers and services to support Indian Oil Corporation Ltd. (IOCL), showcasing company’s expanding footprint in India to support country’s ambitious growth goals

RALEIGH, N.C.--(BUSINESS WIRE)-- Vontier Corporation (NYSE: VNT), a leading global provider of critical technologies and solutions to connect, manage and scale the mobility ecosystem, announced today that Gilbarco Veeder-Root (GVR), a Vontier company and the worldwide technology leader for retail and commercial fueling operations, has secured a second significant tender with Indian companies since August. The latest tender is from Indian Oil Corporation Limited (IOCL), where GVR has secured a large position for retail fuel dispensers for a total of $17 million in equipment and $10 million in services support.

Product delivery will begin soon across IOCL’s retail sites throughout India and will continue over the next twelve months; services will continue for eight years. The news follows Vontier and Gilbarco Veeder-Root's announcement of a $59 million tender with India’s Hindustan Petroleum Corporation Limited (HPCL) last month.

"We are excited to partner with IOCL to help provide the critical infrastructure needed to support India’s ambitious growth goals,” said Viswanath Devarajan, Managing Director at Gilbarco Veeder-Root India. “IOCL wanted to provide its customers with the most dependable dispensers with up-to-date technology, safety, security and efficiency benefits, and we look forward to delivering these dispensers and proving our continued commitment to India.”

Gilbarco Veeder-Root has been present in India since 1955. The company’s main manufacturing facility in Coimbatore produces retail and commercial fueling solutions for India and the world. Invenco by GVR, another Vontier company, also recently opened a software development center in Bengaluru for the company’s growing global and India software needs, further demonstrating its commitment and long-term investments in India.

About Vontier:

Vontier (NYSE: VNT) is a global industrial technology company uniting productivity, automation and multi-energy technologies to meet the needs of a rapidly evolving, more connected mobility ecosystem. Leveraging leading market positions, decades of domain expertise and unparalleled portfolio breadth, Vontier enables the way the world moves – delivering smart, safe and sustainable solutions to our customers and the planet. Vontier has a culture of continuous improvement and innovation built upon the foundation of the Vontier Business System and embraced by colleagues worldwide. Additional information about Vontier is available on the Company’s website at www.vontier.com.

About Gilbarco Veeder-Root:

Gilbarco Veeder-Root, a Vontier company, is the worldwide technology leader for retail and commercial fueling operations, offering the broadest range of integrated solutions from the forecourt to the convenience store and head office. For over 150 years, Gilbarco has earned the trust of its customers by providing long-term partnership, uncompromising support, and proven reliability. Major product lines include fuel dispensers, tank gauges and fleet management systems. For more information, please visit: www.gilbarco.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240910295941/en/

Media Relations contact:

Marty Hanna, Vice President, Communications

Vontier Corporation

Martin.hanna@vontier.com

Investor Relations contact:

Ryan Edelman, Vice President, Investor Relations

Vontier Corporation

Ryan.edelman@vontier.com

Source: Vontier Corporation

FAQ

What is the value of the tender Gilbarco Veeder-Root secured from IOCL?

Gilbarco Veeder-Root secured a $27 million tender from Indian Oil (IOCL), including $17 million for equipment and $10 million for services.

How long will the service contract with IOCL last for Gilbarco Veeder-Root?

The service contract with IOCL will last for eight years, providing long-term support for the retail fuel dispensers.

What other recent tender did Vontier (VNT) announce in India?

Vontier announced a $59 million tender with Hindustan Petroleum (HPCL) last month, prior to the IOCL deal.

Where does Gilbarco Veeder-Root manufacture its products for the Indian market?

Gilbarco Veeder-Root's main manufacturing facility for the Indian market is located in Coimbatore, producing retail and commercial fueling solutions.