lubricants opportunity in india 2004-05 hussam adeni lubricant specialist exbpcastrol india...

LubricantsOpportunity in India

2004-05Hussam Adeni

Lubricant SpecialistExBPCastrol India [email protected]

The Components - for the India Market

• India – An opportunities galore• Vehicle in India• Production• Population

• Fuel consumption• Geographical size• Lube market• Hussam Adeni – Lube specialist

Hussam Adeni [email protected]

India – Opportunities galore

• Sixth largest market in the world• Third largest market in Asia Pacific• Ranks after China and Japan• India market 1,200 million litres• Lube market worth INR 120,000

million


Vehicle production

• Vehicle production 5.3 million in 2002

• Annual growth in vehicles 12%


Vehicle population

• Total vehicle population 65 million• 2/3 wheeler contribute three fourths of

the vehicle population• Approx. 76% vehicles are 2 wheeler or

3 wheeler• Used for multiple purpose• Personal and Public passenger transport• Personal & Public goods transport


Vehicle population

• Total vehicle population 65 million• Approx. 76% vehicles are 2 wheeler or

3 wheeler• Passenger cars account for 10%• Buses and Trucks account for 5%


Vehicle population

• 76% vehicles - 2 wheeler or 3 wheeler• 10% vehicles – Passenger cars• 9% vehicles – Other• 5% vehicles – Buses and Trucks

Total vehicle population 65 million


Vehicle population

• 49 million - 2 wheeler or 3 wheeler• 6.6 million - Passenger cars• 6 million - Others • 3.3 million – Buses and Trucks

Total vehicle population 65 million


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 – 7.5 million tons•Recent annual growth – 8%



• Major Fuels• Diesel – High Speed Diesel

•Consumption – 36.7 million tons•Recent annual growth – 0.7%

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



• 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


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


India – Lube Market Opportunities galore


million


Lube consumption- Major sectors

• India Lube market 1,200 m*

• Transport Sector - 60%• Non Transport sector - 40%

* Lube market : 1.200 million litres


Lube consumption- Major sectors

• India Lube market 1,200 m*• Transport Sector - 60%

•Diesel Lubes is 70%•Petrol Lubes is 30%

• Non Transport sector - 40%• Industrial• Maintenance, Process, Manufacturing

* Lube market : 1.200 million litres


Lube consumption- Transport sectors

• India Lube market 1,200 m*• Transport Sector - 60% 670 million Lt

• Passenger cars – 85 million Lt• 2 & 3 wheelers – 100 million Lt• Trucks & buses – 300 million Lt• Agriculture/Tractor – 40 million Lt• Railroad Oils - 45 million Lt• Marine eng/DG Sets – 40 million Lt• Auto transmsn fluids – 50 million Lt• Others - 10 million Lt


Lube consumption- Non Transport sectors

• India Lube market 1,200 m*• Non Transport Sector - 40% • Approx 530 million Lt • Industrial oils – 425 million Lt• Greases - 55 million Lt• Others - 50 million Lt


Lubricant - Market shares in %

• Indian Oil 30%• Hindustan Petroleum 22%• BPCastrol 21%• Bharat Petroleum 10%• Others 17%


Lubricant - Market shares volume

• Indian Oil 365 million Lt Hindustan Petroleum 264 million Lt

• BPCastrol 252 million Lt• Bharat Petroleum 120 million Lt• Others 199 million Lt


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


Base oil manufacturing

• Group I

• - Capacity 900 million Lt/Yr

• - More than 700 million Lt/Yr imported• Group II*

- Nil

• Group III - Nil

* BPCL Mumbai: 150 m/Lt Yr Hydro-cracking unit under exceution. Likely to be on stream by 1st Qtr 2006


Base oil manufacturing

• Group I • - Capacity 900 million Lt/Yr

•Hind Petroleum – 330 million Lt • Mumbai Refinery

•IOC - 300 million Lt• Haldia

•IOC L /Madras Petro - 270 million Lt• Chennai


Additive manufacturing

• Capacity 55 million kg/yrs• Lubrizol

• 50% JV – IOC & Lubrizol USA• 40 million Kg/Yr • - Mumbai

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


India – Lube Market Opportunities galore


million


Hussam Adeni

Thank you

[email protected]

lubricants opportunity in india 2004-05 hussam adeni lubricant specialist exbpcastrol india...

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