India Market For Lubricant and Base Oils 2010

Base Oil & Lubricants
Opportunity in India
in 2010-11
Hussam Adeni
Lubricant Specialist
ExBPCastrol India Lube.specialist@gmail.com
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
Lube.specialist@gmail.com
The Components -
for the India Market
India An opportunities galore
Vehicles in India
Production
Population
Fuel consumption
Geographical size
Lube market
Hussam Adeni Lube specialist
Hussam Adeni
India Opportunities galore
2009-10
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
India Opportunities galore
2009-10 - 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
Hussam Adeni
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
Hussam Adeni
Approx. 72% vehicles are 2 wheeler
Passenger cars account for 13%
Buses and Trucks account for 5.6%
Hussam Adeni
72% vehicles - 2 wheeler
13% vehicles Passenger cars
9.5% vehicles Other
5.6% vehicles Buses and Trucks
Hussam Adeni
82.5 million - 2 wheeler
15 million - Passenger cars
10.9 million - Others
6.5 million Buses and Trucks
Total vehicle population 115 million
Hussam Adeni
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
Hussam Adeni
Major Fuels
Gasoline or Motor spirit ( called
Petrol)
Consumption 12.5 million tons
Hussam Adeni
Major Fuels
Diesel High Speed Diesel
Consumption 55.1 million tons
An estimated 2% probably used
to adulterate gasoline
Hussam Adeni
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 use
Hussam Adeni
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
Hussam Adeni
Environmental issue
- Motor fuels
Gasoline Sulphur content
Till Jan 2000 1000 ppm Nationwide
Urban centres 500 ppm
Apr 2010 - 50 ppm 11 Cities
Hussam Adeni
The India
Lubricant market
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
Hussam Adeni
Lube consumption
- Major sectors
Transport Sector - 52%
Diesel Lubes is 70%
Petrol Lubes is 30%
Non Transport sector - 48%
Industrial
Maintenance, Process, Manufacturing
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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
Hussam Adeni
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
Hussam Adeni
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 %
Hussam Adeni
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
Hussam Adeni
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
Hussam Adeni
The Base Oils
Industry
Group I
- Capacity 805 million Lt/Yr
- More than 990 million Lt/Yr imported
Group II*
Group III
- Nil
* BPCL Mumbai: 150 m/Lt Yr Hydro-cracking unit executed. and on
stream on 1
st
Qtr 2006
Hussam Adeni
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
Hussam Adeni
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
Hussam Adeni
Group II
Hind Petroleum 150 million Lt
Mumbai Refinery
IOC - 140 million Lt
Haldia
BPCL - 170 million Lt
Chennai
Hussam Adeni
Base oil - Supply & demand
2006 - 2009
Hussam Adeni
Source 2006 2007 2008 2009
Market
Reqd.
1544 1690 1712 1900
Local
supply
863 1030 967 989
Shortfall
Hence
Imported
681 660 750 850
Pricing Hyderabad in INR
IOC/HP - Ex Mumbai/Chennai Apr 2011
IOC/HP Ex Mumbai or
ExChennai
Hussam Adeni
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 Lubricant
Additive Industry
Additive manufacturing
Capacity 55 million Kg/Yr
Lubrizol
- Mumbai
Indian Additives
- Chennai
Hussam Adeni
Lubrizol
50% JV IOC & Lubrizol USA
45 million Kg/Yr
- Mumbai
Hussam Adeni
Lubrizol
50% JV IOC & Lubrizol USA
45 million Kg/Yr
Mumbai
Indian Additives
50% JV IOC & Chevron Oronite
15 million Kg/Yr
- Chennai
Hussam Adeni
Hussam Adeni
Lube Specialist
Web links & certifications
Slideshare: http://slidesha.re/tB0M3Q
Blogs Wordpress: http://bit.ly/uCpfw6
India An opportunities galore
based on 2009-10 data
Thank you
Hussam Adeni

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