India is fifth largest market for lubrication is the world, with automotive sector accounting for a major share. With its wide range of specialty lubricants, Dow Consumer Solutions is aiming for bigger pie of auto market.
Improving economic condition and growing adoption of advanced machineries are driving the market for specialty lubricants in India. In addition, increasing demand for automotives is also positively influencing this niche market.
“Though the market for specialty, where innovation makes the difference, accounts for just 5% of the overall lubrication market in India, the demand is growing at a robust pace. This is one of the reasons for starting production of new products in India,” said Massimo Rebolini, Commercial Director for EMEAI, Dow Consumer Solutions (DCS), which recently launched a range of five specialty lubricants, under its well-known brand Molykote, for Indian customers
Dow Consumer Solutions (DCS), the second largest division (in terms of revenues) within The Dow Chemical Company, serves 60 different markets ranging from automotive to packaging, from building & construction to consumer products. Being consumer-facing division, it is one of the leading contributors of innovative products. DCS collaborates with its customers as a long-term partner and help them develop new products that meet their requirements.
The new range of products are general mineral-oil based lubricants targeted at the industrial maintenance and mill owners (textile and sugarcane processing among others). “India’s lubrication industry is predominantly mineral oil or grease market. There is also a good demand for niche, specialty lubricants from sectors such as infrastructure (steel, cement, mining, etc), bearing, automotives, industrial products, textiles, sugarcane processing, etc. The five new products, which are well-suited for Indian conditions and customers, will serve these segments,” informed Rebolini.
Auto sector driving the demand
Lubricants find applications across industries. Automotive sector is one of the leading consumers of specialty lubricants due to rising sales of passenger vehicles and increasing awareness among automobile manufacturers about the benefits of using specialty lubricants.
“In automotive industry, even parts, which may cost a small fraction of overall product cost, need high-quality lubrication because the performance of the vehicle may get affected if the lubricant does not match the required quality parameters. Automotive industry in India is witnessing high-speed growth, which in turn is leading the rise in demand for specialty lubricants. The quality level in this industry is also going up. Sugar industry is another market where use of specialty lubrication is growing,” said Rebolini
In the next 5-10 years, the global automotive industry is likely to witness massive changes. Governments across the world, including India, are pushing for policies for ensuring sustainable growth and promoting electric (or less polluting) vehicle is just one part of it. There are countries in Europe which are aiming to enact policies to ensure only electric vehicles run on the road by 2030. “We are still 12 years away from it. But we have to plan now to achieve this goal by investing in new technologies, building infrastructure (ie charging points for these vehicles), etc. Automotive industry will witness massive changes in the 5-6 years. I will not be surprised if electric vehicles account for 30-40 percent of the global automotive industry in the next 10 years,” said Rebolini.
India, the focus market
Indian economy is growing at faster rate leading to rapid rise in demand for products across industries. The country has the potential to become the third largest lubricants market in the world soon.
“India is promising markets for us as we believe it can have many decades of high growth to become a developed market. For me, the aim will be to double the division’s business in India in the next 3-4 years and according we will make investments to assist this development,” stated Rebolini.
“Automotive industry in India is witnessing high-speed growth, which in turn is leading the rise in demand for specialty lubricants. The quality level in this industry is also going up.”s
- Massimo Rebolini, Commercial Director for EMEAI, DCS