Lubricants business

1. IOCL Future scenario 2000-15 and beyond

2. Lubricants - Why India
• Indian lubricant industry is 4 billion USD
• Bazaar trade has emerged the largest
distribution channel with 83% contribution
under replacement segment post
deregulation of lubricants wherein:
– Castrol commands a leading 22% market share
– Gulf Oil ~7% market share respectively
1.7%
3.5%
5.2%
0%
1%
2%
3%
4%
5%
6%
Global Asia pacific India
Lubricants – Growth till 2014-20
Lubricants -
Growth
0
5
10
15
20
25
30
35
40
2014 2025
Cars per
1,000
population
CAGR 9.4%
IOCL Future scenario 2000-15 and beyond
47%
53%
Lubricant market- India
Automoive
Industrial and
process oil
945 TMT
1075 TMT

3. Lubricants market – Private players
and challenges
• Castrol – largest private player with 22% market share in bazaar trade
• Gulf Petrochem buying 75% of Sah Petroleums taking over IPOL brand which commands 7% market
share in bazaar trade
• Repsol, the Spain's largest petroleum company has entered India by announcing a partnership with
GP Petroleum Ltd with a target of 5% share in automotive lubricants
• Petronas Lubricants International (PLI) launched a lubricant blending plant in Maharashtra with an
estimated production capacity of 110 TMT per annum by end of 2017
IOCL Future scenario 2000-15 and beyond
• Challenges:
– Considering growth opportunity and higher profitability from retail volumes,
players are sharpening focus on strengthening their distribution channels,
brand pull, product innovations and pricing to corner higher market share
– Petrol pumps channel has diluted to 17% of channel mix from ~90% earlier
– Higher distribution margins by new entrants to make speedy inroads in the
bazaar market
– Engine technology advancements and rise in profitability per litre are
inducing lubricant manufacturers to innovate in order move up the curve
– In passenger cars, companies are aggressively spending on brand
positioning. This is the most profitable segment from a lubricant company’s
perspective
Castrol oil has
achieved increased
fuel efficiency of
TATA trucks by
1.5%. First diesel
engine oil to be
recommended for
fuel efficiency by an
OEM