Industrial Lubricant Sector is Anticipated to Witness Positive Growth Rate in India Due to Rise in Investments
The global lubricants market
is growing rapidly. India is one of the emerging markets after U.S. and China. India is one of the fastest growing markets in Asia. Moreover, in terms of GDP, India is in fourth place at $1.93 trillion and growth rate is 5.4%-5.9% according to Economic Survey in 2014-2015. The Lubricants industry in India is highly correlated to GDP as it provides facilities for major end users such as energy sector, chemicals, automotive, manufacturing, railways, steel, marine and many more. So, growth in the economy means strong growth for lubricants industry as well owing to its interrelation to other industries as well. In terms of market share, industrial lubricant business anticipates a significant growth rate as other end user industries. Lubricant industry in India witnesses a structural shift of volume growth to value growth. India is the third largest lubricant market globally in volume terms after the US and China. The dominant players in lubricant industry in India are Indian Oil Corporation Limited, Bharat Petroleum Corporation Limited, Castrol India limited and Shell India markets private limited.
The demand for the lubricant industry in India is forecast to rise in the recent future. The foreign countries are keen to invest in India. Recently, Gulf oil corporation ltd. a subsidiary of Hinduja group, a global conglomerate company made an approach to invest Rs.120 crore to set up a 75,000-KL plant in Chennai and they are bringing new technology that doesn’t had before in India. Gulf petrochem group is a leading player in international oil sector, is planning to invest Rs.500 crore in India to enter Rs.6000 crore lubricant market. Gulf petrochem has already made two acquisitions recently namely Sah Petroleum Ltd. for Rs.95 crore and Royal Dutch Shell Specialties near Gujarat for Rs.15 crore to enter fuel storage terminal business in India in span of two months.
Compared to other developed countries, the per-capita lubricant consumption is low in India. However, a comparison with other developed countries like US reveals significant potential in India for growth in lubricant consumption and therefore an upsurge in the lubricant industry as well.
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