Analysis of Lubricants in India

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  • Topic: Lubricant, Petroleum, Motor oil
  • Pages : 14 (3784 words )
  • Download(s) : 751
  • Published : September 4, 2012
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TABLE OF CONTENTS

1. Introduction
2. Market Segmentation
3. Supply and demand of lubricants
4. Market players and their market share
5. Product and their market share
6. Price of lubricants
7. Product promotion
8. References

Introduction

High growth in Indian automotive, power and engineering is creating new opportunities for lubricant manufacturer. The report gives an analysis of lubricant markets in India. It also highlights the different market players and their market share. It also covers the market size and structure, major player and market share of their products. The report gives analysis of both automotive as well as industrial lubricant market.

Market Segmentation
The lubricant industry can be broadly classified into two segments 1. Automotive Lubricants.
2. Industrial and Marine & Energy Lubricants Business.

Automotive lubricant dominates the market share 65% of the total lubricant market. The automotive lube market has grown at around 14% from 1993 -1998, with the commercial vehicle segment accounting for about 60% of the total consumption of the automotive lubricants. India per capita consumption of automotive lubricants is low at around 1Kg per annum on account of the low penetration of the automobiles in the country.

India has the second largest railway network, sixth largest industry and is the twelfth most industrialized nation in the world. Hence industrial lube account for rest and have grown at 13 %. Segmentation of automotive as well as industrial lubricant can be done as follows: Further the Automotive Industry is segmented in two ways

1.) Lube Oil.
2.) Vehicle Type.

Automotive Lubricants
Gas Engine oil
Diesel Engine Oil
Coolant
Grease
Break oil
Engine oil
Gear oil

Petrol Engine oil

Vehicle

4 Wheeler
2/3 Wheeler
MUV/SUV
Tractors
LCV/HCV
Cars
4 Strokes
2 Strokes

With the slower growth rate in the automotive segment, declining margins on account of rising base oil price, rupee depreciation and increasing competition the competitors are focusing to the industrial lubricants. Although private companies are increasing their presence in the industrial segment, penetration in this area is expected to be slow on account of well entrenched position of the existing PSUs.

Industry lubricant can be classified as:

1.) Bearing Lubrication.
2.) Gear Lubrication.
3.) Heat transfer fluids.
4.) Machining of metals.
5.) Refrigerators.
6.) Textile machinery.
7.) Special Applications.
8.) Earth moving equipment.

Supply and Demand of lubricants

The uses of lubricants are mainly in consumer automotive, commercial automotive, industrial oil & fluids and marine & aviation industry. We can divide this based on its end uses like engine oil, transmission oil, gear box oil, brake fluid, hydraulic oil, bearing oil, compressor oil, turbine oil, piston oil. |

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World Scenario

World lubricant demand is increasing at 1.6 percent per year to 40.5 million metric tons in 2012. Growth is aided by the ongoing expansion of the world motor vehicle park, as well as by a rebound in manufacturing and other industrial activity from the global economic slowdown of 2008 and 2009. Global lubricant demand has seen some recovery in 2010 after registering a significant decline of 8.4% in 2009 over the previous year. Of the 36.3 milliontons of lubricants that were demanded in 2010 most have been consumed by the USA, making it the largest country market. The question, however, remains just how long the USA will maintain this leading position, as countries which have not been significantly curtailed by the global recession are increasing their appetite for lubricants. Just a few years ago, consumption by the USA accounted for 25% of global demand. Today, this number has decreased down to 22%. Unlike Russia, which has seen a continued depressed demand since the economic...
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