india market for lubricant and base oils 2010

Base Oil & LubricantsOpportunity in India

in 2010-11

Hussam Adeni

Lubricant Specialist

ExBPCastrol India [email protected]

Contents

Component of the India Lube Market

The India Lubricant industry

The India Base Oil Industry

The India Lube additives Industry

Base oil manufacturing

Hussam Adeni – Lube Specialist

The components for the India

Lubricant market

[email protected]

The Components -for the India Market

• India – An opportunities galore

• Vehicles in India

• Production

• Population

• Fuel consumption

• Geographical size

• Lube market

• Hussam Adeni – Lube specialistHussam Adeni [email protected]

India – Opportunities galore2009-10

• Third largest market in the world

• Second largest market in Asia Pacific

• Ranks after China and Japan

• India market 1,900 million litres

Hussam Adeni [email protected]

India – Opportunities galore2009-10 - Economy

• Area 3.28 sq km

• Population 1.166 million

• Population density 354.7/ sq km

• Vehicle population 114.9 million

• 2 wheelers 82.5 million

• Trucks & Buses 6.5 million

• Cars 15.0 million

• Others 10.9 million


Vehicle population 2009-10

• Total vehicle population 114.9 million

• 2 wheeler contribute about three fourths of the vehicle population

• Approx. 72% vehicles are 2 wheelers

• Used for multiple purpose• Personal and Public passenger transport

• Personal & Public goods transport


Vehicle population – 2009-10

• Total vehicle population 114.9 million

• Approx. 72% vehicles are 2 wheeler

• Passenger cars account for 13%

• Buses and Trucks account for 5.6%



• 72% vehicles - 2 wheeler

• 13% vehicles – Passenger cars

• 9.5% vehicles – Other

• 5.6% vehicles – Buses and Trucks

Total vehicle population 114.9 million



• 82.5 million - 2 wheeler

• 15 million - Passenger cars

• 10.9 million - Others

• 6.5 million – Buses and Trucks

Total vehicle population 115 million


Motor Fuel demand in India

• Major Fuels

• Gasoline or Motor spirit ( called Petrol)

• Diesel – HSD ( High Speed Diesel)

• LPG – Gas vehicles

• CNG - Gas vehicles

• Demand for Gas likely to pick up



• Major Fuels

• Gasoline or Motor spirit ( called Petrol)

•Consumption – 12.5 million tons



• Major Fuels

• Diesel – High Speed Diesel

•Consumption – 55.1 million tons

• An estimated 2% probably used to “adulterate” gasoline



• Major Fuels

•LPG – Liquefied Petroleum Gas

• Allocated for domestic use in cooking and carries subsidies

•CNG – Compressed Natural Gas

• Retailed at Gujarat and Delhi

• Demand picking up due to lower costs.

• Consumption data negligible but mixed up

with non transport useHussam Adeni [email protected]

Environmental issue - Motor fuels

• Diesel – Sulphur content

• Till Jan 2000 – 2500 ppm Nationwide

• Urban centres – 500 ppm

• By 2005 - 500 ppm Nationwide


• Apr 2010 - 50 ppm 11 Cities


Environmental issue - Motor fuels

• Gasoline – Sulphur content

• Till Jan 2000 – 1000 ppm Nationwide

• Urban centres – 500 ppm



• Apr 2010 - 50 ppm 11 Cities


The India Lubricant market

[email protected]

Lube consumption- Major sectors – 2009-10

• India Lube market 1,900 m*

• Transport Sector - 52%

• Non Transport sector - 47.9%

* Lube market - 2009-10 : 1.900 million litres


Lube consumption- Major sectors


• Transport Sector - 52%

•Diesel Lubes is 70%

•Petrol Lubes is 30%

• Non Transport sector - 48%

• Industrial

• Maintenance, Process, Manufacturing


Lube consumption- Transport sectors


• Transport Sector - 52% 983 million Lt

• Passenger cars – 211 million Lt

• 2 & 3 wheelers – 145 million Lt

• Trucks & buses – 313 million Lt

• Agriculture/Tractor – 60 million Lt

• Railroad Oils - 64 million Lt

• Marine eng/DG Sets – 69 million Lt

• Auto transmsn fluids – 69 million Lt

• Others - 40 million Lt


Lube consumption- Non Transport sectors


• Non Transport Sector - 47.9%

• Approx 902 million Lt

• Industrial oils – 762 million Lt

• Greases - 95 million Lt

• Others - 45 million Lt


Lubricant- Market shares in %

• Indian Oil 24%

• Hindustan Petroleum 12%

• BPCastrol 10%

• Bharat Petroleum 11%

• Others 17%• Shell 5.0%

• Valvoline & Valvoline 3.2%

• Total 3.0 %


Lubricant- Market shares in % & Mil. Lt

• Indian Oil 24% - 449 m Lt

Hind Petroleum 12% - 215 m Lt

• BPCastrol 10% - 184 m Lt

• Bharat Petro 11% - 196 m Lt

• Others 17%• Shell 5.0% - 90 m Lt

• Valvoline & Tidewater 3.2% - 60 m Lt/each

• Total 3.0 % - 56 m Lt


Lubricant- Annual Blending capacities

• Indian Oil 430 million Lt Hindustan Petroleum 350 million Lt

• BPCastrol 300 million Lt

• Bharat Petroleum 125 million Lt

• Others 395 million Lt

Total capacity: 1600 million Lt/Year


The Base OilsIndustry

[email protected]


• Group I

• - Capacity 805 million Lt/Yr

• - More than 990 million Lt/Yr imported

• Group II*

- Capacity 460 million Lt/Yr

• Group III

- Nil

* BPCL Mumbai: 150 m/Lt Yr Hydro-cracking unit executed. and on

stream on 1st Qtr 2006



• Group I


• Hind Petroleum – 200 million Lt • Mumbai Refinery

• IOC - 200 million Lt• Haldia

• IOC L /Madras Petro - 270 million Lt• Chennai

• BPCL - 180 million Lt• Chennai


Target Market – Base Oils

• Group I

• - Shortfall is 850 million Lt

• - Met by imports from• Iran

• Dubai ( Traded)

• Other Middle East countries

• Far East and Aspac



• Group II


• Hind Petroleum – 150 million Lt • Mumbai Refinery

• IOC - 140 million Lt• Haldia

• BPCL - 170 million Lt• Chennai


Base oil - Supply & demand2006 - 2009


Source 2006 2007 2008 2009

Market Reqd.

1544 1690 1712 1900

Local supply

863 1030 967 989

ShortfallHence Imported

681 660 750 850

Pricing Hyderabad – in INRIOC/HP - Ex Mumbai/Chennai Apr 2011

�IOC/HP Ex Mumbai or ExChennai


Base Oil - Grade Group I Per Lt in bulk

Group II Per Lt in bulk

SN 100 60 - 62 62 - 65

SN 150 60 - 62 63 - 66

SN 500 60 - 62 _____

BS 150 80 - 82 ______

Payment terms Advance DD/Cheque

Packing 20 KL tankers

Freight 2.00/Lt ExMumbai, 1.50/Lt ExChennai

The LubricantAdditive Industry

[email protected]

Additive manufacturing

• Capacity 55 million Kg/Yr

• Lubrizol• - Mumbai

• Indian Additives• - Chennai




• Lubrizol• 50% JV – IOC & Lubrizol USA

• 45 million Kg/Yr

• - Mumbai




• Lubrizol• 50% JV – IOC & Lubrizol USA


• Mumbai

• Indian Additives• 50% JV IOC & Chevron Oronite


• - Chennai


Hussam Adeni – Lube Specialist

Web links & certifications

Slideshare: http://slidesha.re/tB0M3Q

Blogs Wordpress: http://bit.ly/uCpfw6

India – An opportunities galorebased on 2009-10 data

Thank you


india market for lubricant and base oils 2010

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