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


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


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


• 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


• 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
• By 2010
• 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
• By 2005
• By 2010
• 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
Hussam Adeni


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 –
• Greases
• Others

762 million Lt
- 95 million Lt
- 45 million Lt

Hussam Adeni


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


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


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*
- 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


• 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
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


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


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
• Mumbai

• Indian Additives
• 50% JV IOC & Chevron Oronite
• - 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


India market for lubricant and base oils 2010

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