Lube Opportunities In India 2005

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Market size for lubes in India 2k5 and opportunities for Lube marketeers

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Lube Opportunities In India 2005

  1. 1. Lubricants Opportunity in India 2004-05 Hussam Adeni Lubricant Specialist ExBPCastrol India [email_address]
  2. 2. The Components - for the India Market <ul><li>India – An opportunities galore </li></ul><ul><li>Vehicle in India </li></ul><ul><ul><li>Production </li></ul></ul><ul><ul><li>Population </li></ul></ul><ul><li>Fuel consumption </li></ul><ul><li>Geographical size </li></ul><ul><li>Lube market </li></ul><ul><li>Hussam Adeni – Lube specialist </li></ul>Hussam Adeni [email_address]
  3. 3. India – Opportunities galore <ul><li>Sixth largest market in the world </li></ul><ul><li>Third largest market in Asia Pacific </li></ul><ul><li>Ranks after China and Japan </li></ul><ul><li>India market 1,200 million liters </li></ul><ul><li>Lube market worth INR 120,000 million </li></ul>Hussam Adeni [email_address]
  4. 4. Vehicle production <ul><li>Vehicle production 5.3 million in 2002 </li></ul><ul><li>Annual growth in vehicles 12% </li></ul>Hussam Adeni [email_address]
  5. 5. Vehicle population <ul><li>Total vehicle population 65 million </li></ul><ul><li>2/3 wheeler contribute three fourths of the vehicle population </li></ul><ul><li>Approx. 76% vehicles are 2 wheeler or 3 wheeler </li></ul><ul><li>Used for multiple purpose </li></ul><ul><ul><li>Personal and Public passenger transport </li></ul></ul><ul><ul><li>Personal & Public goods transport </li></ul></ul>Hussam Adeni [email_address]
  6. 6. Vehicle population <ul><li>Total vehicle population 65 million </li></ul><ul><li>Approx. 76% vehicles are 2 wheeler or 3 wheeler </li></ul><ul><li>Passenger cars account for 10% </li></ul><ul><li>Buses and Trucks account for 5% </li></ul>Hussam Adeni [email_address]
  7. 7. Vehicle population <ul><li>76% vehicles - 2 wheeler or 3 wheeler </li></ul><ul><li>10% vehicles – Passenger cars </li></ul><ul><li>9% vehicles – Other </li></ul><ul><li>5% vehicles – Buses and Trucks </li></ul><ul><ul><li>Total vehicle population 65 million </li></ul></ul>Hussam Adeni [email_address]
  8. 8. Vehicle population <ul><li>49 million - 2 wheeler or 3 wheeler </li></ul><ul><li>6.6 million - Passenger cars </li></ul><ul><li>6 million - Others </li></ul><ul><li>3.3 million – Buses and Trucks </li></ul><ul><ul><li>Total vehicle population 65 million </li></ul></ul>Hussam Adeni [email_address]
  9. 9. Motor Fuel demand in India <ul><li>Major Fuels </li></ul><ul><ul><li>Gasoline or Motor spirit ( called Petrol) </li></ul></ul><ul><ul><li>Diesel – HSD ( High Speed Diesel) </li></ul></ul><ul><ul><li>LPG – Gas vehicles </li></ul></ul><ul><ul><li>CNG - Gas vehicles </li></ul></ul><ul><li>Demand for Gas likely to pick up </li></ul>Hussam Adeni [email_address]
  10. 10. Motor Fuel demand in India <ul><li>Major Fuels </li></ul><ul><ul><li>Gasoline or Motor spirit ( called Petrol) </li></ul></ul><ul><ul><ul><li>Consumption – 7.5 million tons </li></ul></ul></ul><ul><ul><ul><li>Recent annual growth – 8% </li></ul></ul></ul>Hussam Adeni [email_address]
  11. 11. Motor Fuel demand in India <ul><li>Major Fuels </li></ul><ul><ul><li>Diesel – High Speed Diesel </li></ul></ul><ul><ul><ul><li>Consumption – 36.7 million tons </li></ul></ul></ul><ul><ul><ul><li>Recent annual growth – 0.7% </li></ul></ul></ul><ul><ul><li>An estimated 2% probably used to “adulterate” gasoline </li></ul></ul>Hussam Adeni [email_address]
  12. 12. Motor Fuel demand in India <ul><li>Major Fuels </li></ul><ul><ul><ul><li>LPG – Liquefied Petroleum Gas </li></ul></ul></ul><ul><ul><ul><ul><li>Allocated for domestic use in cooking and carries subsidies </li></ul></ul></ul></ul><ul><ul><ul><li>CNG – Compressed Natural Gas </li></ul></ul></ul><ul><ul><ul><ul><li>Retailed at Gujarat and Delhi </li></ul></ul></ul></ul><ul><ul><li>Demand picking up due to lower costs. </li></ul></ul><ul><ul><li>Consumption data negligible but mixed up with non transport use </li></ul></ul>Hussam Adeni [email_address]
  13. 13. Environmental issue - Motor fuels <ul><li>Diesel – Sulphur content </li></ul><ul><ul><li>Till Jan 2000 – 2500 ppm Nationwide </li></ul></ul><ul><ul><li>Urban centers – 500 ppm </li></ul></ul><ul><ul><li>By 2005 - 500 ppm Nationwide </li></ul></ul><ul><ul><li>By 2010 - 250 ppm Nationwide </li></ul></ul>Hussam Adeni [email_address]
  14. 14. Environmental issue - Motor fuels <ul><li>Gasoline – Sulphur content </li></ul><ul><ul><li>Till Jan 2000 – 1000 ppm Nationwide </li></ul></ul><ul><ul><li>Urban centers – 500 ppm </li></ul></ul><ul><ul><li>By 2005 - 500 ppm Nationwide </li></ul></ul><ul><ul><li>By 2010 - 150 ppm Nationwide </li></ul></ul>Hussam Adeni [email_address]
  15. 15. India – Lube Market Opportunities galore <ul><li>Sixth largest market in the world </li></ul><ul><li>Third largest market in Asia Pacific </li></ul><ul><li>Ranks after China and Japan </li></ul><ul><li>India market 1,200 million liters </li></ul><ul><li>Lube market worth INR 120,000 million </li></ul>Hussam Adeni [email_address]
  16. 16. Lube consumption - Major sectors <ul><li>India Lube market 1,200 m* </li></ul><ul><ul><li>Transport Sector - 60% </li></ul></ul><ul><ul><li>Non Transport sector - 40% </li></ul></ul><ul><li>* Lube market : 1.200 million liters </li></ul>Hussam Adeni [email_address]
  17. 17. Lube consumption - Major sectors <ul><li>India Lube market 1,200 m* </li></ul><ul><ul><li>Transport Sector - 60% </li></ul></ul><ul><ul><ul><li>Diesel Lubes is 70% </li></ul></ul></ul><ul><ul><ul><li>Petrol Lubes is 30% </li></ul></ul></ul><ul><ul><li>Non Transport sector - 40% </li></ul></ul><ul><ul><ul><li>Industrial </li></ul></ul></ul><ul><ul><ul><ul><li>Maintenance, Process, Manufacturing </li></ul></ul></ul></ul><ul><li>* Lube market : 1.200 million liters </li></ul>Hussam Adeni [email_address]
  18. 18. Lube consumption - Transport sectors <ul><li>India Lube market 1,200 m* </li></ul><ul><li>Transport Sector - 60% 670 million Lt </li></ul><ul><ul><li>Passenger cars – 85 million Lt </li></ul></ul><ul><ul><li>2 & 3 wheelers – 100 million Lt </li></ul></ul><ul><ul><li>Trucks & buses – 300 million Lt </li></ul></ul><ul><ul><li>Agriculture/Tractor – 40 million Lt </li></ul></ul><ul><ul><li>Railroad Oils - 45 million Lt </li></ul></ul><ul><ul><li>Marine eng/DG Sets – 40 million Lt </li></ul></ul><ul><ul><li>Auto transmsn. fluids – 50 million Lt </li></ul></ul><ul><ul><li>Others - 10 million Lt </li></ul></ul>Hussam Adeni [email_address]
  19. 19. Lube consumption - Non Transport sectors <ul><li>India Lube market 1,200 m* </li></ul><ul><li>Non Transport Sector - 40% </li></ul><ul><ul><li>Approx 530 million Lt </li></ul></ul><ul><ul><li>Industrial oils – 425 million Lt </li></ul></ul><ul><ul><li>Greases - 55 million Lt </li></ul></ul><ul><ul><li>Others - 50 million Lt </li></ul></ul>Hussam Adeni [email_address]
  20. 20. Lubricant - Market shares in % <ul><li>Indian Oil 30% </li></ul><ul><li>Hindustan Petroleum 22% </li></ul><ul><li>BPCastrol 21% </li></ul><ul><li>Bharat Petroleum 10% </li></ul><ul><li>Others 17% </li></ul>Hussam Adeni [email_address]
  21. 21. Lubricant - Market shares volume <ul><li>Indian Oil 365 million Lt Hindustan Petroleum 264 million Lt </li></ul><ul><li>BPCastrol 252 million Lt </li></ul><ul><li>Bharat Petroleum 120 million Lt </li></ul><ul><li>Others 199 million Lt </li></ul>Hussam Adeni [email_address]
  22. 22. Lubricant - Annual Blending capacities <ul><li>Indian Oil 430 million Lt Hindustan Petroleum 350 million Lt </li></ul><ul><li>BPCastrol 300 million Lt </li></ul><ul><li>Bharat Petroleum 125 million Lt </li></ul><ul><li>Others 395 million Lt </li></ul><ul><li>Total capacity: 1600 million Lt/Year </li></ul>Hussam Adeni [email_address]
  23. 23. Base oil manufacturing <ul><li>Group I </li></ul><ul><li>- Capacity 900 million Lt/Yr </li></ul><ul><ul><li>- More than 700 million Lt/Yr imported </li></ul></ul><ul><li>Group II* </li></ul><ul><ul><li>- Nil </li></ul></ul><ul><li>Group III </li></ul><ul><ul><li>- Nil </li></ul></ul><ul><li>* BPCL Mumbai: 150 m/Lt Yr Hydro-cracking unit under execution. Likely to be on stream by 1 st Qtr 2006 </li></ul>Hussam Adeni [email_address]
  24. 24. Base oil manufacturing <ul><li>Group I </li></ul><ul><li>- Capacity 900 million Lt/Yr </li></ul><ul><ul><ul><li>Hind Petroleum – 330 million Lt </li></ul></ul></ul><ul><ul><ul><ul><li>Mumbai Refinery </li></ul></ul></ul></ul><ul><ul><ul><li>IOC - 300 million Lt </li></ul></ul></ul><ul><ul><ul><ul><li>Haldia </li></ul></ul></ul></ul><ul><ul><ul><li>IOC L /Madras Petro - 270 million Lt </li></ul></ul></ul><ul><ul><ul><ul><li>Chennai </li></ul></ul></ul></ul>Hussam Adeni [email_address]
  25. 25. Base oil manufacturing <ul><li>Group I </li></ul><ul><li>- Capacity 900 million Lt/Yr </li></ul><ul><ul><ul><li>Hind Petroleum – 330 million Lt </li></ul></ul></ul><ul><ul><ul><ul><li>Mumbai Refinery </li></ul></ul></ul></ul><ul><ul><ul><li>IOC - 300 million Lt </li></ul></ul></ul><ul><ul><ul><ul><li>Haldia </li></ul></ul></ul></ul><ul><ul><ul><li>IOC L /Madras Petro - 270 million Lt </li></ul></ul></ul><ul><ul><ul><ul><li>Chennai </li></ul></ul></ul></ul>Hussam Adeni [email_address]
  26. 26. Additive manufacturing <ul><li>Capacity 55 million kg/yrs </li></ul><ul><ul><li>Lubrizol </li></ul></ul><ul><ul><ul><li>50% JV – IOC & Lubrizol USA </li></ul></ul></ul><ul><ul><ul><li>40 million Kg/Yr </li></ul></ul></ul><ul><ul><ul><li>- Mumbai </li></ul></ul></ul><ul><ul><li>Indian Additives </li></ul></ul><ul><ul><ul><li>50% JV IOC & Chevron Oronite </li></ul></ul></ul><ul><ul><ul><li>15 million Kg/Yr </li></ul></ul></ul><ul><ul><ul><li>- Chennai </li></ul></ul></ul>Hussam Adeni [email_address]
  27. 27. India – Lube Market Opportunities galore <ul><li>Sixth largest market in the world </li></ul><ul><li>Third largest market in Asia Pacific </li></ul><ul><li>Ranks after China and Japan </li></ul><ul><li>India market 1,200 million liters </li></ul><ul><li>Lube market worth INR 120,000 million </li></ul>Hussam Adeni [email_address]
  28. 28. 2005 Presentation by Hussam Adeni India – Lube Market Opportunities galore <ul><li>Thank you </li></ul><ul><li>Contact details on the next page </li></ul>Hussam Adeni [email_address]
  29. 29. Hussam Adeni Ex Castrol India Lube Specialist <ul><li>For an update & 2010 edition please email request to </li></ul><ul><li>[email_address] </li></ul><ul><li>For other technical updates please visit </li></ul><ul><li>http://www.thetruthaboutcars.com/tag/fuel-additives/ </li></ul><ul><li>http://forums.noria.com/eve/forums?a=search&reqWords=Hussam+Adeni </li></ul>Hussam Adeni [email_address]
  30. 30. For more info please contact [email_address] <ul><li>For an update & 2010 version please contact Hussam at </li></ul><ul><li>[email_address] </li></ul><ul><li>Or other articles & presentations pls browse </li></ul><ul><li>http://www.thetruthaboutcars.com/tag/fuel-additives/ </li></ul><ul><li>http://forums.noria.com/eve/forums?a=search&reqWords=Hussam+Adeni </li></ul>Hussam Adeni [email_address]

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