"


. -


..


INDUSTRY NEWS ~ . ""' ",."' ,~; ' .


'


~ ~


.. __


..


~


.


.


__,._


......


OVERVIEW OF INDIA'S LUBE OIL INDUSTRY


The Indian lubricants industry, long held back due to technological stagnation, is poised for the launch of high performance oils to meet changed local requirements.


While growth of lubricant markets in the developed world has remained almost stagnant, the Indian market has recorded the fastest growth of around 3-5%. The accelerated growth is a result of the various liberalisation measures like price decontrol, reduction and changes to import duties, etc., announced by the government over the last five years.


An upsurge in the production of automobiles besides a general hike in industrial activity has led to an increase in consumption, almost 1.0 million kilolitres of lubricant oil in 1995-96 compared to 0.85million kilolitres in 1991-92.


The industrial sector on the other hand has varied uses depending on the type of machines and is thus highly fragmented. However, core industry sectors are still the largest consumer of industrial oils, followed by other large-scale industries like sugar, paper, tyre etc.


Of the total consumption, 60% of lubricants goes into automobile sector and the rest into industrial uses.


A large grey market for re-refined oil has over- emphasised the need for branding and packaging. All players thus are giving packaging a fresh look. With stiff competition on the market many lubricant manufacturers are coming out with new and better packaging types, which are very attractive and convenient to use.


The most commonly used packaging materials are HDPE containers, lined cartons, tin containers and flexible pouches (stand-up or pillow-packs). The pack size varies from 0.25 litres to 5.0 litres in HDPE or metal containers for consumer packaging and from 30 ml to 60 ml sized flexible pouches.


It is estimated that about 5,600 kilolitres is produced in flexible pouches and about double that amount is packed in lined cartons. Metal packs are being phased out and are fast being replaced by HDPE containers.


Though there has been an initial rapid growth in the automotive and industrial sectors, owing to the introduction of specialised and high-energy efficient


lubricating oils. These sectors are not expected to register significant growth in terms of volume, as the introduction of higher specification products longer drain periods is likely to offset some of the increase in demand. The lubricants industry expects to sell an additionally 15,000 to 20,000 kilolitres of oil every year.


Product specific growth is likely to favour those brands demonstrating superior technology, quality packaging as well as innovative market strategies, all of which would result in substantial benefits to the consumer.


Protech India Ltd have offered BLF members help within India. Should you be interested, their contact details are shown below.


Preeti Singh, Protech India Ltd PROTECH


Founded in 1987, Protech India is a multidisciplinary consultancy organisation dedicated to new business development, technology transfer, market research and other al lied project implementation services.


As a consulting group Protech has been instrumental in the completion of 35 joint venture projects (worth US $350 million) and conducting their techno-economic-feasibility studies and market surveys, involving companies across the globe with several of them being FORTUNE 500 companies. Set-up by a pool of highly skilled professionals drawn from diverse backgrounds of engineering, economics, finance and management, Protech sees itself as a contributor to nation building.


Protech Market Research has worked in diverse fields ranging from processed food, polymers, electronics, textile, consumer durables to FMCGs, as well as, macro economic industry studies for organisations across Asia, Europe and North America helping them to stay ahead in an ever changing business environment.


Protech India Ltd, K-5, 1st Floor, Green Park Extension, New Delhi-110 016, Tel: 00 91-11 -6192833, Fax: 00 91-11-6164674


Other offices in Mumbai, Ahmedabad, Calcutta, Bangalore, Chennai.


BP INDUSTRIAL LUBRICANTS ANNOUNCE NEW MARKETING COMMUNICATIONS MANAGER


BP Industrial Lubricants is pleased to announce the appointment of Piers Dickinson as the company's new Marketing Communications Manager.


After gaining a Masters degree in marketing and becoming a member of the Chartered Institute of Marketing, Piers spent almost six years with Henkel Loctite as a Product Manager and European Market Development Manager.


It is this experience, combined with his knowledge of key industrial markets in both the UK and Europe which will be fully utilised at BP.


BP Industrial Lubricants offers a complete range of products and services for the lubricants industry and is particularly strong in the metalworking and machine shop sectors.


ISSUE 37 • MAY 1999


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24