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Automotive Product Finder Magazine | Demand for high-performance lubricants is growing
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Growing investment in infrastructure and increasing automotive sales are driving the demand for lubricants in India. Though mineral oils hold the largest share in the Indian automotive lubricants market, synthetic and semi-synthetic lubricants are expected to grow at a rapid pace in the near future. Increasing demand for a diverse, innovative grade of lubricants for industrial as well as automotive applications is expected to drive growth, says A P Pandey, Managing Director, Brugarolas India Pvt Ltd, in this interview.
Could you brief us about products offered by Brugarolas in India?
In India, we offer standard range of products such as hydraulic fluids, knitting oils, cutting fluids (neat & water soluble), metal forming products, rust preventive, copper wire drawing, and lithium greases.
Core industrial sectors like cement, coal, steel engineering, sugar, defence, automotive and auto component, food and pharmaceutical, machine tools, tap & valves, plastics, mining, railways, etc are some of major end-users of industrial lubricants.
How is the demand for your products?
Since industrial lubricants are consumable products, the machine is running the demand of industrial lubricants. Our product performance is very good and once customer starts using our product, we always get repeat orders from them. Also, most of times, the customer recommends our product to other customers to use.
How is Brugarolas serving the automobile makers and manufacturers of auto components?
Automotive and auto component manufacturers are our major customers in India. Since Brugarolas is a global company, we are working with auto OEMs worldwide and we are global suppliers for automotive industries. We serve high quality products for automobile manufacturing sector in India.
What will be the impact of BS VI norms and fuel economy mandate on automotive lubricant technology?
BS-VI norms will require significant engine technology changes including improvements in engine combustion and calibration, increased injection and cylinder pressures. New emission norms will also have to be met in all conditions and not just the ideal testing conditions.
At the same time, fuel economy has been mandated based on weighted average performance. Fuel economy norms will be implemented in two phases - one in 2017 and the other one in 2022.
Leading auto makers had to hike their investments to upgrade existing models and make them BS VI complaint. The number of product launches has declined in the last year. Firms are looking at products that would not need many changes before the new norms take effect. Two- and four-wheeler makers have pulled capacity expansion plans, as they expect demand to fall. Maruti Suzuki India Ltd and Hero MotoCorp Ltd have been impacted the most, given that their product portfolio is large compared to other competitors.
How is the market for grease & lubricants - globally & in India?
North America and Europe were prominent regions in global grease market in 2017, which can be attributed to their well-established automobile industries. Asia Pacific held the largest market share in 2017. The product demand is prominently driven by India, China, Thailand and Japan owing to rapidly growing automobile sector in these countries. Moreover, growing infrastructure and increasing participation of foreign direct investors in this region will directly drive construction industry dynamics which will propel product demand in the near future.
On average, lubricants consist of about 90 per cent base oils and 10 per cent chemical additives and other components on a volume basis, while on a value base the respective ratio is estimated to be around 80:20. The development of lubricants is closely linked to the specific applications and application methods.
The global lubricant market is expected to register a CAGR of 2.18 per cent during the forecast period, 2018-2023. One of the major factors driving the growth of the global market is the growing automotive production in Asia-Pacific and Europe, especially in countries, such as India, UK, Italy, France, and Indonesia. Additionally, the growing demand for and usage of high-performance lubricants (owing to their better and improved properties, such as reduced flammability, reduced gear wear, and increased service life) is also driving the growth of the market, as the aforementioned properties, make these lubricants suitable for high temperature applications.
India is the fifth largest lubricants market in the world. What is driving this market?
The major driver for the India lubricant market is the boost in demand from the automotive industry. Though mineral oils hold the largest share in the Indian automotive lubricants market, synthetic and semi-synthetic lubricants are expected to grow at a rapid pace in the near future.
Do you think acceleration in mining and road construction activity will further drive the demand for lubricants?
The growth of the mining lubricants market is driven by the increasing demand from the Asia-Pacific and Middle East & Africa region and growing end use industries such as coal and iron ore mining. Moreover, the demand for high quality and high-performance lubricants is expected to further fuel the mining lubricants market during the forecast period.
What are the emerging trends in lubricants market (globally and in India)?
The global lubricants market size is expected to reach $ 166.25 billion by 2025, according to a new report by Grand View Research Inc, expanding at a 3.8 per cent CAGR during the forecast period. Increasing demand for a diverse, innovative grade of lubricants for industrial as well as automotive applications is expected to drive growth. The subject of sustainability is increasingly challenging for many industries. As a manufacturer of specialty lubricants, how is Brugarolas helping its customers to achieve their sustainability goals? We plan our business for the long term to help ensure as we play a positive vital role in lubricants where we operate in wider areas. Running a safe, efficient and profitable business is our motto for helping customers to achieve their goals.
Are there any plans to launch new products in 2019?
Yes, we are going to launch the new range of metal working fluids in 2019 which is environment friendly and safe to use for machine operators.
What are your plans to grow your business in auto and non-auto segments?
Our main challenge is to deliver high quality global standard product at lower cost to Indian customers and second to convince them to use high quality products which may be look little more expensive in the beginning but it would prove more economical in long run. We have already started producing standard lubricants in India, which will definitely boost our sales in the country.
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