India's lubricant market is growing up with demand for industrial lubricants on the rise. More infrastructure developments and growth in manufacturing in the coming years will see further demand growth for industrial lubricants. <p></p><p> With more equipment being put into action, the demand for industrial lubricants will be for efficient and productive operation of mining and construction equipment as they are working in extreme temperature and pressure conditions which would require regular lubrication.</p><p> <span style="font-weight: bold;">Market dynamics</span><br />According to <span style="font-weight: bold;">Praveen Nagpal, Chief Technology Officer, Shell Lubricants India,</span> the Indian lubricant market is witnessing steady growth due to the rise in the demand for industrial equipment. &quot;Over the past few years, there has been an increase in construction, manufacturing and mining activities, which have increased demand for high-performance industrial lubricants for the efficient and productive operation of heavy machinery,&quot; he says. </p><p><span style="font-weight: bold;">Shankar Karnik, General Manager - Industrial, ExxonMobil Lubricants,</span> adds, &quot;Currently, India is the third-largest lubricant market worldwide, behind only USA and China. What is really interesting is that the Indian lubricant market is the fastest-growing in the world. Even as the lubricant markets in other countries are starting to plateau, the growth in India's lubricant consumption is averaging between 3-4 per cent per year. This promising trend in India is thanks to the general expansion of the Indian economy which in turn is being driven by the growth of key sectors like construction and mining - and this is ripe with further potential.&quot;</p><p>However, the ongoing economic slowdown has certainly affected construction equipment segment too. <span style="font-weight: bold;">K Madhu Mohan, General Manager-Marketing, GS Caltex India,</span> says, &quot;In the past few months, construction equipment makers have cut production and stalled some of their expansion plans. Government also has delayed awarding new projects to curb the capital expenditure to meet the FY19 deficit target.&quot;</p><p>According to him, the lube industry does have some challenging times ahead with many affecting factors other than the slowdown. However, it would be too early to say that the industry will see any major de-growth because of these factors.</p><p> <span style="font-weight: bold;">Product and technology trends</span><br />With the changing design and technologies in various equipment segments, lubricant players are also involved in the development of new products matching this requirement. With the next level of emission regulations is around the corner for implementation, engine oils composition has a major role to play in the process. According to Mohan, the high-performance lubricants from GS Caltex offer ultimate reliability at all temperatures, lower oil consumption, and significantly lower fuel consumption along with extended service intervals.&quot;Our team of experts is available to work with customers to help optimise overall lubrication management. Our extensive relation with OEMs plays an invaluable role in delivering technical services that are consistent with the latest trends. These services are indispensable in keeping the equipments at peak performance and include: advanced oil condition monitoring, customised training programs, and technical troubleshooting and technical assistance,&quot; adds Mohan.</p><p>According to Nagpal, customers these days are keen to learn about the overall benefits of the lubricants that go into heavy equipment. &quot;There has been a gradual increase in the customer choice towards products and solutions that offer them long-term benefits rather than immediate or short-term gains,&quot; he adds. Karnik elaborates,&quot;Today, various product categories are being upgraded for evolving norms and policies. For businesses to keep up with such changes, the products they use will also need to improve. Infrastructure equipment in India is the site of a new, advanced global benchmarking; so too is India's lubricant sector. This shift towards high-tech lubricant products augers well for us as technology is our core strength.&quot;</p><p>Shell has a significant focus on developing and integrating new technologies to its offerings for the customers. &quot;Making use of our strong R&amp;D lineage and advanced technological know-how, we have been developing products and services to counter extreme weather conditions and enhance efficiency,&quot; says Nagpal.</p><p> <span style="font-weight: bold;">Opportunities</span><br />According to Mohan, with the pace of growth led by the transport and manufacturing sectors, India's lubricant demand is projected to rise by 2.1 per cent per year on average over the 2020-25 period, to approximately 2.55 mt in 2025, assuming average annual GDP growth of around 7-7.5 per cent. &quot;India's lubricants consumption per capita remains low at 1.62 kg in 2018, compared to 2.7 kg for Indonesia, 5.2 kg for China and 8.1 kg for Malaysia, suggesting considerable long-term upside potential. Above data clearly reflects the scope and opportunity that the Indian lubricant market offers to global multinationals and well as domestic players,&quot; he adds.</p><p>According to Nagpal, the growth in construction, mining and material handling equipment sectors across the country has seen a rise and is expected to create more and newer opportunities for the industrial lubricant sector. He adds, &quot;Heavy equipment and machinery will demand fuel economy benefits from lubricants to increase their potential savings from effective equipment lubrication. These equipment require lubrication with low viscosity, high durability and longer oil drain intervals. This is where lubricant companies like Shell will come to the rescue. We deliver lubricants formulated with advanced technologies that will equal their total lubricants spend and further impact their maintenance budgets.&quot;</p><p> <span style="font-weight: bold;">Looking ahead</span><br />In spite of the current slowdown in the industry, India is always poised for new developments in infrastructure and manufacturing segments as there is lots of action left for development. With the government trying to ease out the market with sector-specific sops for various industry segments, it is expected that the market will bounce back soon and will head towards a sustainable growth in future. This will definitely help lubricants market also realign for further growth in future.</p><p> &quot;Even as the lubricant markets in other countries are starting to plateau, the growth in India's lubricant consumption is averaging between 3-4 per cent per year.&quot;</p><p> <span style="font-weight: bold;">- Shankar Karnik, General Manager - Industrial, ExxonMobil Lubricants</span></p><p></p>