‘Improving Customers’ Mobility Aspirations Is Fundamental To Us’
The lubricant industry's growth is very closely related to a country's economic activity. When the economy grows, the way it is growing in India, there's a sense of definitiveness for the lubricant industry's growth. It is also clear that it's not only the demographics of India but significant productivity gains because of technological innovation that will be driving this growth. The manufacturing demand drives a large part of the lubricant industry. So, as manufacturing equipment comes with new technology that can handle more intense manufacturing environments, they will require high-quality lubricants.
The Market In India
India is the third-largest lubricant market globally at present. By some estimates, by 2050, it will become the world's second-largest lubricant market. The market size is about 16.5 million barrels, estimated to double in volume. The value growth, however, is going to be greater because there's going to be higher quality equipment that's going to be coming in which will require higher specification lubricants. Our product portfolio is driven towards improving the customers' productivity or mobility aspirations, which is fundamental to us.
Low Carbon Future
We expect further innovation in manufacturing because of the economy's desire for a lower carbon future. New solutions will have to lower industries' carbon footprint, and we aim to lead this transition by providing customers with innovative product solutions and addressing the people's aspirations towards a lower carbon future. For example, many lubricant solutions are energy efficient. When people talk about sustainable mobility, they generally look at EVs, but lubricant solutions can play an important role. In the manufacturing space, high-quality lubricants give equipment extended service life and longevity.
Expanding Distribution Network
In India, we understand the importance of the retail market, and our demand profile is highly balanced between industrial, passenger and commercial segments. The B2C and B2B part of the industry is 50-50. We have continued improving and strengthening our distributor network by appointing distributors in areas with no presence. We have been expanding our regional distribution centres, our strong points, so that we can service the demands of our distribution partners in a highly secure and reliable manner in the shortest possible time. Our new blending plant, under construction in Maharashtra, has investments to the tune of Rs 900 crore. By the end of 2025, we should be producing out of that facility.
Targeting Indian MSMEs
Manufacturing is 17 per cent of the Indian GDP and is expected to reach 25 per cent in the next ten years. The micro, small and medium enterprises (MSMEs) are a significant part of India's manufacturing sector. We have started appointing distributors in large manufacturing clusters to address the demand of the MSMEs. In India, we have many industrial clusters consisting of large industries and MSMEs around. We endeavour to catch the customers early and build that brand, affinity and advocacy to have a longer relationship with them.
As told to Arjun Yadav
