LUBRICATING OIL (20W40 GRADE SN TYPE) MANUFACTURING WITH FORMULA

Economic, political, and regulatory forces are reshaping the dynamics of lubricants supply and demand throughout the world, and opportunities to grow this business continue to emerge. India, in particular, has emerged as a key growth market, as well as a source of competitively priced lubricants. Strong growth in the Indian automotive, power and engineering sectors is creating new market opportunities for lubricants manufacturers.

In the automotive sector, consumers are migrating to better quality vehicles and increase in demand for four stroke motorbikes, tie ups with original equipment manufacturers using higher grade lubricants; this is benefiting multi-grade lubricant products with strong brand recognition and wide distribution. Whilst there are no restrictions on foreign lubricant manufacturers from establishing 100%-owned operations in India, many have chosen to partner with National companies. (Merger & Acquisition). The automotive lubricant market is estimated to have grown volumes by over 3% on the back of a strong economic performance. Increased motorcycle and car stock, growth in agricultural driven lubes consumption and a booming construction sector have been the primary factors to this. The old generation truck market and the 2-stroke motorcycle lubes market, is projected to continue declining sharply in the short-term.

The trends highlighted above are expected to continue, Thus, lube consumption is projected to grow strongly in cars and 4-stroke bikes. With the rapid growth in vehicle and infrastructure sector, the shape of the customer groups would be undergoing significant change in the future. Fleets, construction companies and large workshop groups would be forming an increasing percentage of the market. Another trend, which is rapidly catching up, is the emergence of organized retail chains. While the impact on lubricant sales at this juncture is minimal, these outlets could present opportunities for marketing in rural areas who are customers in the future. It is also expected that the rural growth of 4-stroke motorcycles will continue to outstrip urban demand in the foreseeable future. Penetration in rural and semi urban areas is extremely low and could provide opportunities for marketers. New entrants will have to deal with uncertainty of demand, different and involving customer needs, a relatively poor supplier base, a market crowded with competition and niche market specially in rural areas.

Lubricants are used to reduce friction between moving parts, thus resulting in lower wear and tear. In many machines, lubricants also play a role in cooling, rust prevention and help to avoid deposition of solids between closely fitting parts. Liquid lubricants are most commonly used. A lubricant is a blend of base oils and performance enhancing additive as required by engine, gearbox and other applications areas.