Project report for Engine oil shop
The India lubricant market is expected to register a CAGR of 4.64%, during the forecast period, 2018-2023. The major factors driving the growth of the market are the increasing vehicular production along with the growing industrial sector. Lubricants are majorly used in the industrial sector for the proper functioning of machines. They are also used in automobile for smooth functioning and longevity of engines and other components. Lubricants are available in liquid, semi-fluid, or solid state, and possess various characteristics, such as, high viscosity index, high level of thermal stability, low freezing point, and high boiling point, all of which help to reduce friction between surfaces of machine parts and the rate of wear, without compromising operational efficiency. The major driver for the India lubricant market is the boosting demand from the automotive industry. The sales of new motor vehicles in the country has been on a consistent rise, majorly owing to the growing middle class incomes. The automotive production in India has also been on a rising path with yearly growth rates of over 6%, thus, increasing the demand for engine oils and other lubricants employed in the automotive industry. Though, mineral oils hold the largest share among all the automotive lubricants used in the country, synthetic and semi-synthetic lubricants are expected to grow at a rapid pace during the forecast period.
Product / Services & process
The Main products are:
. Engine Oil and Greases
Market potential & Strategy
Today it is more important than ever to maintain the value of expensive assets. A modern plant requires the optimum in lubrication or power-transmitting media. The selection of the right viscosity and the correct level of additives are of utmost importance in preventing the damage and destruction of an expensive equipment. Similarly, almost every middle class home has at least one vehicle so the requirement of lubricants is on the rise, building big market for lubricants.
India industrial lubricant market stood at $ 1.28 billion in 2017 and is projected to grow to $ 1.67 billion by 2023, on the back of strong growth in construction & mining sectors across the country. Increasing demand for advanced lubricants, in addition to government initiatives towards infrastructure development and growing focus of manufacturers on expanding their production capacities, is expected to fuel the country’s industrial lubricant market. In the financial budget for FY19, the government of India announced an investment of USD61 billion to upgrade infrastructure facilities across the country. Moreover, the government is planning to develop new seaports and airports. All these aforementioned factors are anticipated to positively influence the industrial lubricant market in India during forecast period. Companies like Castrol, Elf Total-Fina, Gulf, and Shell Oil have made their presence felt in the market.In the future, growth in the automotive lubricants industry will largely depend on the overall performance of the economy. In the past one and a half years, the scenario has improved with higher sales of commercial vehicles and two-wheelers. However, in the future volume growth will be affected because of use of better quality, long drain lubes. This will increase the replacement cycle for lubes. In the shorter term, one will witness intense competition in a slow growing market marked by a consolidation activity, which has the potential to change the face of the lubricant industry. Given the rising competition, success of a product would largely depend how well it is branded and distributed.
The firm's strategy is to build relationship with local workshops, vehicle showrooms the industrial units in the surronding areas to create and maintain regular stong customer base.