lubricants & base oil opportunity in india in 2010-11 hussam adeni lubricant specialist...

Lubricants& Base Oil

Opportunity in Indiain 2010-11

Hussam AdeniLubricant SpecialistExBPCastrol India [email protected]

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 [email protected]

India – Opportunities galore2009-10

• Third largest market in the world• Second largest market in AsPac• Ranks after US and China • India market 1,800 - 1,900 million

litres• Lube market worth INR 300,000

million (2009-10 prices)


India – Opportunities galore2009-10 - Economy

• Area 3.28 sq km• Population 1.166 million• Population density 354.7/ sq km• Vehicle population 102.5 million• Two wheelers 74.0 million• Cars 14.0 million• Trucks, Buses & Others 12.5 million


India – Opportunities galore2009-10 - Petrochemicals

• Fuel consumption 61.95 million Lt• Diesel (HSD) 50.91 million Lt• Gasoline (Petrol) 11.04 million Lt• Additive manufacturing 55 million Kg• Lube consumption 1850 million Lt• Base Oils imported 900 million Lt/Yr• Base Oil manufacturing Capacity

• Group I Base Oils 805 million Lt/yr• Group II Base Oils 460 million Lt/Yr


Vehicle population 2009-10

• Total vehicle population 102.5 million

• Two wheeler contribute about three fourths of the vehicle population

• Approx. 74% vehicles are 2 wheelers • Used for multiple purpose

• Personal and Public passenger transport• Personal & Public goods transport


Vehicle population – 2009-10

• Total vehicle population 102.5 million

• Approx. 74% vehicles are 2 wheeler • Passenger cars account for 14%• Buses and Trucks account for 12% • Includes all diesel & off-the-road vehicles like

tractors and other agriculture vehicles etc..



• 74% vehicles - 2 wheeler • 14% vehicles – Passenger cars• 12% vehicles – Bus,Trucks & others

Total vehicle population 102.5 million



• 74% = 76 million - 2 wheeler • 24% = 14 million - Passenger cars• 12% = 12.5 million - Buses, Trucks &

Others •

Total vehicle population 102.5 million


Vehicle population 2009-10vs Lube consumption - Transport

• 76 million - 2 wheelers • Approx. 532 million Lt of lubes

• 14 million - Passenger cars• Approx. 112 million Lt of Lubes

• 12.5 million - Buses, Trucks & Others• Approx. 437 million Lt of Lubes

Total vehicle population 102.5 millionApprox. 1081 million Lt by Transport sector


Vehicle population 2009-10vs Lube consumption - Transport

Summary

Two wheelers - 76 million 532 million Lt of lubes

Gasoline Passenger cars – 14 million 112 million Lt of Lubes

Diesel vehicles – 12.5 million 437 million Lt of LubesApprox. 1081 million Lt by Transport sector


Industrial sector Lube consumption 2009-10

Industrial sector Lube consumption

Estimated at 40:60 ratio in a fast growing Industrial Economy like India

Industrial Lube consumption 721 million Lt


Total Lube consumption 2009-10

Transportation sector Lube consumption

1081 million LtIndustrial sector Lube consumption

721 million LtTotal = Transport + Industrial sector

1802 million Lt


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



• Major Fuels• Gasoline or Motor spirit ( called

Petrol)•Consumption – 11.04 million tons

Source: Ministry of Petroleum report on consumption - Apr-Dec 10= 8.28 million Tons

Annualized = 11.04 Million Tons



• Major Fuels• Diesel – High Speed Diesel

•Consumption – 50.91 million tons

• An estimated 2% probably used to “adulterate” gasoline

Source: Ministry of Petroleum report on consumption - Apr-Dec 10= 38.18 million Tons Annualized = 50.91 Million Tons



• Major Fuels•LPG – Liquified 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


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


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


Additive manufacturing

• Capacity 55 million kg/yrs• Lubrizol

• 50% JV – IOC & Lubrizol USA• 45 million Kg/Yr • - Mumbai

• Indian Additives• 50% JV IOC & Chevron Ornite• 15 million Kg/Yr • - Chennai


India – Opportunities galore2009-10

• Third largest market in the world• Second largest market in Asia

Pacific• Ranks after US and China • India market 1,850 to 1,900 million

litres• Lube market worth INR 300,000

million (US$ 6,250 Million - US$ @48 INR)


India – An opportunities galorebased on 2009-10 data

Thank you


lubricants & base oil opportunity in india in 2010-11 hussam adeni lubricant specialist...

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