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India market for lubricant and base oils 2010

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Lubricant and Base Oil Market India 2010

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India market for lubricant and base oils 2010

  1. 1. Base Oil & Lubricants Opportunity in India in 2010-11 Hussam Adeni Lubricant Specialist ExBPCastrol India Lube.specialist@gmail.com
  2. 2. 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
  3. 3. The components for the India Lubricant market Lube.specialist@gmail.com
  4. 4. 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 Lube.specialist@gmail.com
  5. 5. 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 Lube.specialist@gmail.com
  6. 6. 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 Lube.specialist@gmail.com
  7. 7. 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 Lube.specialist@gmail.com
  8. 8. 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% Hussam Adeni Lube.specialist@gmail.com
  9. 9. Vehicle population 2009-10 • 72% vehicles - 2 wheeler • 13% vehicles – Passenger cars • • 9.5% vehicles – Other 5.6% vehicles – Buses and Trucks Total vehicle population 114.9 million Hussam Adeni Lube.specialist@gmail.com
  10. 10. Vehicle population 2009-10 • 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 Lube.specialist@gmail.com
  11. 11. 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 Lube.specialist@gmail.com
  12. 12. Motor Fuel demand in India • Major Fuels • Gasoline or Motor spirit ( called Petrol) •Consumption – 12.5 million tons Hussam Adeni Lube.specialist@gmail.com
  13. 13. Motor Fuel demand in India • Major Fuels • Diesel – High Speed Diesel •Consumption – 55.1 million tons • An estimated 2% probably used to “adulterate” gasoline Hussam Adeni Lube.specialist@gmail.com
  14. 14. Motor Fuel demand in India • 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 Lube.specialist@gmail.com
  15. 15. Environmental issue - Motor fuels • Diesel – Sulphur content • Till Jan 2000 – 2500 ppm Nationwide • Urban centres – 500 ppm • By 2005 - 500 ppm Nationwide • By 2010 - 250 ppm Nationwide • Apr 2010 - 50 ppm 11 Cities Hussam Adeni Lube.specialist@gmail.com
  16. 16. Environmental issue - Motor fuels • Gasoline – Sulphur content • Till Jan 2000 – 1000 ppm Nationwide • Urban centres – 500 ppm • By 2005 - 500 ppm Nationwide • By 2010 - 150 ppm Nationwide • Apr 2010 - 50 ppm 11 Cities Hussam Adeni Lube.specialist@gmail.com
  17. 17. The India Lubricant market Lube.specialist@gmail.com
  18. 18. 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.specialist@gmail.com
  19. 19. Lube consumption - Major sectors • India Lube market 1,900 m* • Transport Sector - 52% •Diesel Lubes is 70% •Petrol Lubes is 30% • Non Transport sector - 48% • Industrial • Maintenance, Process, Manufacturing Hussam Adeni Lube.specialist@gmail.com
  20. 20. Lube consumption - Transport sectors • India Lube market 1,900 m* • 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.specialist@gmail.com
  21. 21. Lube consumption - Non Transport sectors • India Lube market 1,900 m* • Non Transport Sector - 47.9% • Approx 902 million Lt • Industrial oils – • Greases • Others 762 million Lt - 95 million Lt - 45 million Lt Hussam Adeni Lube.specialist@gmail.com
  22. 22. Lubricant - Market shares in % • Indian Oil 24% • Hindustan Petroleum 12% • BPCastrol 10% • Bharat Petroleum 11% • Others 17% • Shell • Valvoline & Valvoline • Total 5.0% 3.2% 3.0 % Hussam Adeni Lube.specialist@gmail.com
  23. 23. 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 • Valvoline & Tidewater • Total 5.0% - 90 m Lt 3.2% - 60 m Lt/each 3.0 % - 56 m Lt Hussam Adeni Lube.specialist@gmail.com
  24. 24. 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 Lube.specialist@gmail.com
  25. 25. The Base Oils Industry Lube.specialist@gmail.com
  26. 26. Base oil manufacturing • 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 Hussam Adeni Lube.specialist@gmail.com
  27. 27. Base oil manufacturing • Group I • - Capacity 850 million Lt/Yr • 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 Lube.specialist@gmail.com
  28. 28. 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 Lube.specialist@gmail.com
  29. 29. Base oil manufacturing • Group II • - Capacity 460 million Lt/Yr • Hind Petroleum – 150 million Lt • Mumbai Refinery • IOC - 140 million Lt • Haldia • BPCL - 170 million Lt • Chennai Hussam Adeni Lube.specialist@gmail.com
  30. 30. Base oil - Supply & demand 2006 - 2009 Source 2006 2007 2008 2009 Market Reqd. 1544 1690 1712 1900 Local supply 863 1030 967 989 Shortfall Hence Imported 681 660 750 850 Hussam Adeni Lube.specialist@gmail.com
  31. 31. Pricing Hyderabad – in INR IOC/HP - Ex Mumbai/Chennai Base Oil - Grade IOC/HP SN 100 ExChennai Apr 2011 Group I Group II Per Per Lt in bulkMumbai or Lt in bulk Ex 60 - 62 62 - 65 SN 150 60 - 62 63 - 66 SN 500 60 - 62 _____ BS 150 80 - 82 ______ Payment terms Packing Freight Advance DD/Cheque 20 KL tankers 2.00/Lt ExMumbai, 1.50/Lt ExChennai Hussam Adeni Lube.specialist@gmail.com
  32. 32. The Lubricant Additive Industry Lube.specialist@gmail.com
  33. 33. Additive manufacturing • Capacity 55 million Kg/Yr • Lubrizol • - Mumbai • Indian Additives • - Chennai Hussam Adeni Lube.specialist@gmail.com
  34. 34. Additive manufacturing • Capacity 55 million Kg/Yr • Lubrizol • 50% JV – IOC & Lubrizol USA • 45 million Kg/Yr • - Mumbai Hussam Adeni Lube.specialist@gmail.com
  35. 35. Additive manufacturing • Capacity 55 million Kg/Yr • 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 Lube.specialist@gmail.com
  36. 36. Hussam Adeni – Lube Specialist Web links & certifications Slideshare: http://slidesha.re/tB0M3Q Blogs Wordpress: http://bit.ly/uCpfw6
  37. 37. India – An opportunities galore based on 2009-10 data Thank you Hussam Adeni Lube.specialist@gmail.com

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