The document discusses the critical role of lubricants in various industries, particularly in India, where the market is the fifth largest globally. It covers different types of lubricants, their properties, and the significant challenges faced in marketing and competition within the lubricant industry. The conclusion highlights the importance of brand image, distribution channels, and promotional strategies for success in this highly fragmented market.

1. LUBRICANTS
Presented
By Zamda
Abdallah

2. INTRODUCTION
• From the very beginning the machine age has depended on lubrication to keep
the gears, shafts and wheels of progress turning. Over the years in agriculture,
industry, construction, transportation on the roads and off lubricants have
played a critical role in getting the job done and today ever more sophisticated
vehicles and machines, demand ever more sophisticated lubrication products.
• Before the coming of the today different varieties of lubricants the whale oil was
historically famous and was used up to the latter part of the 20th century as a
friction modifier additive for automatic transmission fluid.
• In today’s industrial sectors, Engines, transmissions ,axles, hydraulic systems,
gear assemblies and metal working operations need specially formulated
lubricants to protect critical components, provide reliable operation, lower
maintenance costs, decrease downtime and increase equipment life.

3. CURRENT SCENARIO
• India is the fifth largest Lubricant market
globally in volume terms behind the US,
China ,Russia and Japan.
• India is a net base oil deficit market and
many additives used in Lubricants are mostly
imported. Volume consumption of Lubricants
in India has consistently declined over past
few years as a result of improving lubricant
and engine quality. In addition the year 2013
was accompanied by slower GDP growth
Rate and subdued industrial activity that also
affected the industry margins.
• The Lubricants can be divided into 2
segments: Automotive and industrial
.Currently Automotive lubricants have
higher margin products compared to
industrial lubricants. Majority of
Automotives lubricant demand is derived
from commercial vehicles and tractors
• The demand for Automotive lubricants in
India is driven by growth in vehicle
population, and the consumption of
industrial lubricants is highly correlated with
index of industrial production.

4. WHAT IS A LUBRICANT?
• A lubricant is a substance introduced to reduce friction between moving surfaces .It
may also have the function of transporting foreign particles.
• Lubricants typically contain 90% base oil (petroleum-mineral oils) and less than 10%
additives.
• Additives-Are substances added in lubricants to improve existing physical properties
and to create new beneficial characteristics in the oil.
• CHARACTERISTICS OF A GOOD LUBRICANT
– It should High boiling point
– Low freezing point
– High viscosity index(should be highly viscous)
– Thermal stability
– Hydraulic Stability
– Demulsibility
– Corrosion prevention(they should not corrode the machine)
– High resistance to oxidation, decomposition at high temperature(chemicaly
enhanced)
– High flash point and fire point than the operating temperature

5. TYPES OF LUBRICANTS
• Some fluids frictions exist within the lubricant but its much less than the sliding friction ,fluid
friction is the resistance to motion that happens within the fluid. For instance ;Fluid friction is
what makes it difficult to walk rapidly in deep water. Three common kinds of lubricants based
on their physical state are;
• Liquids
– Liquid lubricants are oils/mineral oils which come from crude oil and synthetic oils which
are manmade compounds commonly used in industrial application Examples are:
vegetable oil, whale oil
• Grease/semi liquid
– Grease’s aren't strictly liquid or solid instead they typically soften when the temperature
rises and stiffen when the temperature falls .Examples of grease are; emulsion
• Solid
– Solid liquids are made from substances that retain their shape under normal condition.
Solid liquids also contain some form of metal such as molybdenum disulfide and several
solid chemicals such as graphite, and metal alloy .When they act as a lubricant the solid
materials that slide over one another this reduces the friction that would occur if metal
parts were in direct contact.
 From the above types we also get various types of lubricant oils such as;
 Bio lubricants(derived from animals and plants e.g. olive and whale oil)
 Synthetic lubricants(such as synthetic esters, polyalpha-olefin(PAO)
 Blended/compounded lubricants

6. SIGNIFICANCE PROPERTIES OF A LUBRICANT
• viscosity
– One of the properties of a lubricant is Viscosity, viscosity of a lubricant can be
thick or thin ,the thicker lubricant has a greater resistance to flow so it has a
higher viscosity. The thinner lubricant has less resistance to flow therefore has
relatively lower viscosity. The thinner the lubricant the lower the viscosity.
• Corrosion Stability
– Any good lubricant should not take part in corrosion this is a property of a
lubricant which represent its resistance towards the metals
• Volatility
– This property shows the evaporation behavior of lubricant at high temperature.
• Emulsification
– It is the property of a lubricant due to which the lubricating oil mixed with water
to form an emulsion
– A good lubricant should have low emulsion number
• Oiliness
– A good lubricant should have the ability to stay in place between the bearing
surfaces.

7. HOW LUBRICATION WORKS
• To understand lubrication we have to understand friction and how friction causes
damage ,how operating conditions can increase damage, and how lubricants can
prevent damage.
• Engines, transmissions ,axles, hydraulic systems, gear assemblies and metal working
operations need specially formulated lubricants to protect critical components, provide
reliable operation, lower maintenance cost and many other uses. To achieve these,
lubricants are formulated with special additive packages to enhance performance in a
wide range of applications and operating conditions.
• Reducing friction between moving parts is critical to increase equipment life, even the
smoothest surface when viewed microscopically presents a landscape of peaks and
valves. These microscopic peaks are potential points of contact between the interacting
surfaces which lead to friction. The amount of friction generated depend on the
contacted area of the microscopic peaks, not on the total area of the interacted
surfaces.
• Friction act to slow down or even stop the sliding action between surfaces asperities.
Excessive friction causes asperities to weld together then break off, this wears down the
metals services and contaminate the lubricant with metal debris.
• Negative effects of friction are wear patterns on machines such as:
– Rippling
– Ridging
– Spalling
– pitting

8. CONT
• In a machine the lubricant is an important element in protecting parts from these
negative effects of friction. Depending on type of equipment, loads and operating
speed, different types of lubrications and employed to provide this protection
• The 3 lubrication regimes include;
– Fluid film/Hydrodynamic lubrication-The lubricant film is thick enough to
completely separate the interacting surface minimizing friction ,this
lubrication is present under maximum viscosity and minimum loads conditions
– Boundary lubrication-used when the operating conditions are such that it is
not possible to establish a full fluid condition, particularly at low relative
speeds between the moving or sliding surfaces.
– Mixed film lubrication- Used in extreme high contact pressures ,used to
separate surfaces
Lubricant have to do their jobs under extreme operating conditions which can
lead to its break down or reduce to its ineffectiveness.

9. ROLES OF LUBRICANTS
LUBRICANT
LUBRICATE
CLEAN
PROTECT
SEAL
TRANSMIT
POWER

10. THINGS THAT CAN LEAD TO LUBRICANT FAILURE
• Lubricant contamination such as dust, water, and other bi products of combustion
such as soot shortens life of lubricant leading to equipment damage
• Interrupted /reduced oil fill-not changing dirty lubricants on time in extreme
environment can increase machine damage chances as using too low or too high
viscosity lubricants or lubricants with viscosity altered by contaminants will not
provide adequate protection to machine.
• Using lubricants in applications for which they were not formulated ;gear oil in an
engine can cause machine failure, because misapplied lubricants may not have the
correct viscosity or contain adequate additive levels or types to protect a machine
 In choosing lubricants we always have to follow the original equipment manufacture
recommendation for types and fill in rules.
MARKETING LUBRICANTS
• For a motivated businessman starting a Lubricant Retail Outlet is affordable, a
minimum of 15 lakh rupees for stock and inventory including building.
• The real challenge however is to maintain the speedy growth rate of this product.
Since currently the basic custom duty on base oil stock has been reduced by the
government from a peak of 85% to a level of 25%,all quantitative restrictions were
also removed, this makes development naturally encourage entry of foreign
participants, which created excess supply situation in the Indian automotive lubes
market, which made it more difficult for Indian lube manufacturers to survive.

11. CHALLENGES WHILE MARKETING LUBRICANTS
• In any profitable business hindrances are natural and lubricants business is not an
exception.
i. Increasing competition
– Ever since India had got liberalized in 1993,this attracted the private players
to enter into the Indian Lube market. This made it difficult for local players to
get reliable market.
ii. Decline in margin
--Due to rising base oil (main raw material for lubricating oil production) prices.
iii. Very low consumer awareness about the brands and quality and too much price
sensitivity that has led Indian lube oil industry to a major marketing challenge for
companies associated with it.
iv. Unknown and strange market environment in the start
v. Deciding location and gathering knowledge about consumer behavior.

12. Key Success Factors
• The key factors for success in this highly Fragmented and competitive industry include;
• Brand Image
– With lubricants becoming a fast moving consumer good and the brand preference
of the consumer witnessing a change brand image plays a key role in affecting the
consumer’s decision to buy a lubricant e.g. A research conducted by Frost and
Sullivan ,found that vehicles owners decisions to buy lubricants was affected by
garage mechanics, advertisement, and brands retail owners
• Distribution channels
– With increasing number of participants in the market ,it is vital for companies to
reach a wider segment of costumers e.g. most MCN’S have tied up with oil majors
to make their brands like; Castrol with Escorts ,Tata Bp with Telco
• Margins and Discount schemes
– Margins, and discounts offered to the store owners and mechanics prompt them to
sell and promote a particular brand e.g. private companies sell most of their
product through dealers, distributions ,mechanics and retail stores
Conclusion
• To conclude ,the major parameters are margin, schemes ,promotional activities and
branding of product. In India a product can’t be placed in the market on the basis of
brand only, but it should match the spending power of consumers. An industry where
switching cost is negligible ,person relationship plays an important role to capture
maximum market share. Regular schemes have become part of a lube market. Not only
the products but also the superior service differentiates one company from another. An
effective one distribution channel as well as hardworking sales team drives a company
on front foot.

13. REFERENCE
• Retrieved from: Kline.(2012).The Dynamics Of the Global Lubricants
Industry,2012 to 2020.International symposium on Lubricants Additives
and fluids, sao Paolo
• Retrieved from: Article by Samarth Mewada School of Petroleum
Management, PDPU,Gandhinagar
• Retrieved from: Bothra ,S.(2012 ).Castrol India, Motilal Oswal
• Retrieved from slide share: Indian Automotive and industrial Lubricants
Market.