Preview

The Indian Lubricant Market: Survival of the Slickest

Powerful Essays
Open Document
Open Document
1441 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
The Indian Lubricant Market: Survival of the Slickest
The Indian Lubricant Market: Survival of the Slickest

Introduction
The Indian automotive lubricant market is the sixth largest market in the world with revenues of approximately $1.30 billion in 2002. It is also one of the fastest growing retail markets in India. Until 1993, it was a highly regulated market with a clear dominance of the public sector. Companies like Bharat Petroleum (BPCL), Hindustan Petroleum (HPCL), and Indian Oil Corporation (IOC) held more than 75 percent of the market share. In recent years, with the advent of the increasing number of multinationals in the Indian market there is a growing presence of private companies. Companies like Castrol, Elf Total-Fina, Gulf, and Shell Oil have made their presence felt in the market.
Market Size
Total production of automotive lubricants in India is approximately 8 to 10 percent of global lube production. Unlike other countries where lubricant demand has witnessed stagnation, the Indian market has been growing at approximately 7 percent per annum for the past 2 years. The public sector contributes to over 60 percent of the revenues for this market. MNC’s have 5 percent market share and the remaining share is held by the unorganized sector. Automotive lubricants are further divided into diesel lubes and petrol lubes. Diesel lubes comprise 70 percent of the market and petrol based lubricants cover the rest. As diesel lubes are used by commercial vehicles, which have to cover greater distances, their market share is higher. Engine oil constitutes around 83 percent of total sales volumes. Gear oils, transmission fluids, hydraulic brake fluids, and engine coolants contribute to the balance.
Competitive Analysis
The first seeds of competition were sown in the early 1990’s when following the liberalization of the Indian economy, the government decided to open the Indian market to foreign competition. Import of base oil, the key raw material, was de-canalized with IOC losing its status as the

You May Also Find These Documents Helpful

  • Powerful Essays

    This industry report of SCOPE MARKETING & INFORMATIONS SOLUTIONS PVT LTD provides extensive information on the Indian Automobile Industry.…

    • 8696 Words
    • 35 Pages
    Powerful Essays
  • Good Essays

    Opening up of the Indian economy in the nineties brought with it more competition and challenges to BPCL, kindled by the phased dismantling of the Administered Pricing Mechanism (APM) on petroleum products and emergence of additional capacities in the region in refining and marketing.…

    • 1823 Words
    • 8 Pages
    Good Essays
  • Good Essays

    The report “Bio-Lubricants Market Analysis By Raw material (Vegetable oil, Animal oil), By Application (Automotive, Hydraulic, Process, De-molding, Lubricating, Chainsaw, Compressor, Turbine, Industrial gear, Metal working), By End Use (Industrial, Commercial transport, Consumer Automotive) And Segment Forecasts To 2020,” is available now to Grand View Research customers and can also be purchased directly at http://www.grandviewresearch.com/industry-analysis/biolubricants-industry…

    • 613 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Oil Industry

    • 1154 Words
    • 5 Pages

    • The Indian Oil and Gas industry plays an important role in the Indian economy with major refineries and gas companies in the country.…

    • 1154 Words
    • 5 Pages
    Satisfactory Essays
  • Powerful Essays

    The automotive industry is one of the focus industries for KPMG globally, given its importance both in the mature economies of countries such as the US and Germany, and in the emerging economies of China and India. The Indian automobile industry has emerged stronger from the recent global downturn, and sales across all segments have seen record breaking numbers in the recent past. While the Indian industry has much to look forward to, by way of steady growth in both domestic and export markets, there are some clear challenges accompanying the opportunities in greener vehicles and alternative mobility. In order to capitalize on these opportunities, the industry needs to develop or acquire technologies and capabilities to produce vehicles that meet future market needs. The government for its part has much to do to ensure the growth trends are maintained, and encourage the development of greener vehicles, while also improving compliance to even existing environmental standards. This report attempts to capture how the Indian automobile industry is expected to develop in the longer term, and what role each stakeholder needs to fulfill in order to be geared up for evolving requirements. We have been aided in our study by several senior executives from India’s automotive sector and we would like to express our gratitude to each of them. It has been an exciting exercise for us to compile this report through discussions with various industry personnel and by examining similar trends developing in other markets. We hope that you find it interesting and insightful too.…

    • 10780 Words
    • 44 Pages
    Powerful Essays
  • Satisfactory Essays

    indian oil

    • 7035 Words
    • 29 Pages

    This is to further declare that this project report is authentic and not submitted by any…

    • 7035 Words
    • 29 Pages
    Satisfactory Essays
  • Good Essays

    With the industry’s immense growth potential, our study foresees huge opportunities for both existing and new market players. Our report also includes the profiles of key industry players, like Kirloskar Oil Engines, Cummins India,…

    • 429 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    China's demand for industrial lubricants has grown at a fast pace in the past decade. In the next five years, both production and demand will continue to grow. Industrial Lubricants Markets in China examines China's economic trends, investment environment, industry development, supply and demand, industry capacity, industry structure, marketing channels and major industry participants. Historical data (2003, 2008 and 2013) and long-term forecasts through 2018 and 2023 are presented. Major producers in China are profiled.…

    • 377 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    London Biscuit Imc

    • 6710 Words
    • 27 Pages

    A detailed analysis of London Biscuits Berhad’s (LBB) internal and external is done through the use of their current product analysis. A thorough description of LBB’s market operations through the use of the marketing mix – 4Ps, is also mentioned. The target audience of LBB’s previous IMC campaign is too vague, and a new target audience is identified. The behavioral sequence model is then used in relation to LBB’s new target audience.…

    • 6710 Words
    • 27 Pages
    Powerful Essays
  • Powerful Essays

    The automotive industry is at the center of India’s new global dynamic. The domestic market expanding rapidly as incomes rise and consumer credit becomes more widely available.…

    • 3152 Words
    • 13 Pages
    Powerful Essays
  • Powerful Essays

    Marketing Plan for Maggie

    • 5072 Words
    • 21 Pages

    But India is a diverse country where different states have different consumption patterns and customs. Thus competition has become the key word in today’s scenario.…

    • 5072 Words
    • 21 Pages
    Powerful Essays
  • Powerful Essays

    Indian Oil Culture

    • 5618 Words
    • 23 Pages

    At IndianOil, operations are strategically structured along business verticals - Refineries, Pipelines, Marketing, R&D Centre and Business Development – E&P, Petrochemicals and Natural Gas. To achieve the next level of growth, IndianOil is currently forging ahead on a well laid-out road map through vertical integration— upstream into oil exploration & production (E&P) and downstream into petrochemicals – and diversification into natural gas marketing and alternative energy, besides globalisation of its downstream operations. Having set up subsidiaries in Sri Lanka, Mauritius and the United Arab Emirates (UAE), IndianOil is simultaneously scouting for new business opportunities in the energy markets of Asia and Africa.Indian oil’s joint ventures:Indian Oil Bhavan, New Delhi. * IndianOil (Mauritius) Ltd. * Lanka IOC PLC – Group company for retail and storage operations in Sri Lanka. It is listed in the Colombo Stock Exchange. It was locked into a bitter subsidy payment dispute with Sri Lanka's Government which has since been resolved * IOC Middle East FZE * Chennai Petroleum Corporation Limited * Green Gas Ltd. – a joint venture with Gas Authority of India Ltd. for city-wide gas distribution…

    • 5618 Words
    • 23 Pages
    Powerful Essays
  • Powerful Essays

    Mother Dairy

    • 5232 Words
    • 21 Pages

    The Indian automobile industry is riding high, like never before. They say that history has an eerie habit of repeating itself. As far as the automobile industry is concerned, the monumental returns and the off-the-charts growth rates reported in India recently bear testimony to this adage. The events that unfolded in Detroit years ago seem to be repeating themselves today, in India. For the automobile industry, future in India seems like an evergreen pasture!…

    • 5232 Words
    • 21 Pages
    Powerful Essays
  • Powerful Essays

    Transportation of Natural Gas

    • 17134 Words
    • 69 Pages

    * IEA (2010a), India’s Downstream Petroleum Sector Refined product pricing and refinery investment, IEA, Paris.…

    • 17134 Words
    • 69 Pages
    Powerful Essays
  • Powerful Essays

    Edible Oil Industry Pakistan

    • 8299 Words
    • 34 Pages

    Michael Porter’s Model – The five competitive forces of industry 20 Strengths 21 Weakness 21 STRATEGY FOR NEW PLAYER: 22 Steps of Segmentation for US (NEW PLAYER) in the Industry: 22 Impact of WTO and opening of boarder with India 23 Salient Features of WTO Agreement 23 Consequences: 24 Future of the Industry: 26 SUPPLY CHAIN OF THE INDUSTRY: 29 1. Procurement 29 Issues: 29 2. Manufacturing 29 Issues: 29 3.…

    • 8299 Words
    • 34 Pages
    Powerful Essays