SERVO : World Class Lubricant since inception

An interview with Pritish Bharat | Executive Director & State Head – West Bengal State Office | Indian Oil Corporation Limited

What is your assessment on the current situation of “lubes” industry in India?

Reply: Lube Industry is already a very competitive Market and having huge potential in the Indian Market. With advent of vehicles with newer technologies, Lube manufacturing Companies have been working overnight to conform to such Vehicles. Servo being the Market Leader, backed up by ourexperienced R&D team have been able to meet such market requirements which also meets the environmental and engine requirement.

Where does Indian “lubes” industry stand compared to the international “lubes” industry?

Reply: Automotive industry in India is the fifth-largest in the world as per 2020 statistics. Hence Lubricant volume requirement is alsoproportional.The Indian lubricants market was valued at over 2,610 kiloton in 2020, and the market is projected to register a CAGR of more than 1.5% during the forecast period (2021-2026). Our Country witnessed a negative impact in the industrial sector due to the lockdown during the pandemic period as automobile production were halted, Industrial houseswere temporarily shut down. This, in turn, naturally affected the demand for lubricants. The Indian lubricants market is consolidated, with the top six players dominating the market. The top companies are engaging in competitive strategies and investments to retain and expand their shares. 

The global lubricants market size was valued at USD 125.81 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 3.7% from 2021 to 2028. Asia Pacific dominated the global market with a volumetric share of over 43% in 2020 and will expand further at the fastest CAGR from 2021 to 2028, in terms of volume as well revenue.

Which are the thrust areas for “lubes” industry in India?

Reply: High-performance synthetic lubricants is expected to drive the demand for lubricants in the country. With IIP set to grow and new manufacturing units and capacity expansion of the existing plants would be providing opportunities for the market in the future. Lubricants and specialty fluids for the BS VI, electric, and hybrid vehicles are likely to lead the future demand in Country.

What will be the future strategy of “lubes division” of Indian Oil?

Reply: Servo has been a World Class Lubricant since inception. We have been continuously striving for meeting the Lubrication requirement of various newly introduced Heavy Machineries as well as vehicles with newer technologies. Through our dedicated Technical Service Team we have been providing Total Fuel Management Solutions to various industries which undergoes various rigid testing methodology and operating conditions. Through dedicated R&D support we are able to formulate new generation lubricating solutions to meet the challenges.

How do you see the “lubes” industry in the year 2025?

Reply: With the evolution of EV units, requirement of Engine oils may decrease in the times to come which will definitely impact the major volume in Engine Oil Segment. However due to rapid growth in Industrial Sector demand in Industrial Lubricant sector is expected to grow substantially. The global industrial lubricants market is expected to grow at a CAGR of 6.4% from 2019 to reach $29.79 billion by 2025. Moreover, in terms of volume, the market is expected to grow at a CAGR of 2.3% from 2019 to reach 18,473.5 thousand tons by 2025.

What about recent activities and new projects of Indian Oil?

Reply: Out of Many Projects which are running at present, Indian Oil is now focused on the project involves laying, building, operating or expanding city or local natural gas distribution networks which includes supply of Piped Natural Gas (PNG) and Compressed Natural Gas (CNG) to domestic, commercial, industrial and transport sector apart from partnering other Stake holders in developing LNG terminals. Various other Pipeline Projects are on progress for facilitating the transportation of Petroleum Products across different parts of the country.

We also have plans for brown field refinery capacity expansion coupled with stakes at the upcoming West Coast Refinery. We also have an ambitious plan on adding substantially to our kitty of 214 MW renewable energy making a huge splash in the Petrochemical Sector, and many others like E&P activities in domestic as well foreign Oil fields.

(Shilpa Bichitra | Special Edition | 2021)