ABOUT HPCL

HPCL is a Fortune 500 company, with an annual sales/income from operations of Rs 213,488.95
Crores during FY 2016-17, having about 25% Marketing share in India and a strong market
infrastructure.

HPCL operates two major refineries producing a wide variety of petroleum fuels & specialties,
one in Mumbai (West Coast) of 6.5 Million Metric Tonnes Per Annum(MMTPA) capacity and
the other in Vishakapatnam, (East Coast) with a capacity of 8.3 MMTPA. HPCL holds an equity
stake of 16.95% in Mangalore Refinery & Petrochemicals Limited, a state-of-the-art refinery at
Mangalore with a capacity of 9 MMTPA. In addition, HPCL is constructing a refinery at
Bhatinda, in the state of Punjab, as a Joint venture with Mittal Energy Investments Pte. Ltd.

HPCL also owns and operates the largest Lube Refinery in the country producing Lube Base
Oils of international standards, with a capacity of 335 TMT. This Lube Refinery accounts for
over 40% of the India's total Lube Base Oil production.

HPCL's vast marketing network consists of 13 Zonal offices in major cities and 101 Regional
Offices facilitated by a Supply & Distribution infrastructure comprising Terminals, Aviation
Service Stations, LPG Bottling Plants, and Inland Relay Depots & Retail Outlets, Lube and LPG
Distributorships. HPCL, over the years, has moved from strength to strength on all fronts. The
refining capacity steadily increased from 5.5 MMTPA in 1984/85 to 14.8 MMTPA presently. On
the financial front, the turnover grew from Rs. 2687 Crores in 1984-85 to an impressive Rs
213,488.95 Crores in FY 2016-17.

VISION

 Market leader in growth and profitability.


 Most preferred supplier of quality products at right price and time.

 Delighting the customers by value added services.

 Professional and empowered team for quick response to customers.

SUCCESS DETERMINANTS OF SELECTED LUBRICANT BRANDS

QUALITY POLICY

 Total customer satisfaction through quality products by doing it right the first time, every
time.

 Ensure consistency of quality, and adherence to time deadlines.

 Strive to achieve excellence in quality through training, motivation, team work and
continuous up gradation of technology.

 To take appropriate steps to minimize wastage, increase productivity and optimize the
quality of products and services in a cost effective manner

PRODUCT COMMITMENT

 To provide quality products and services which shall reflect in a growing list of satisfied
customers.

 To consciously build a quality culture, through employee participation, motivation and
training.

 To strive for an eco - friendly environment.


HPCL LUBRICANTS
 HP Lubes is an integral part of Hindustan Petroleum Corporation Limited, one of India's
frontline oil majors, committed to providing energy and fueling growth in every
significant area of development. In pursuit of this vision, there is a sustained emphasis on
environment protection and preserving the cultural heritage of India.

HPCL Lube market share is around 11%.

The HP Engine Oils pr oduct range covers over 300 brands of lubricants, greases and
specialties catering to the automotive as well as the industrial sector.

HPCL has six lube blending plants at Mumbai, Kolkata, Chennai and Silvassa.

HP Lubricants are borne out of an intense and unrelenting R & D effort, which aims at producing
quality products that enhance automotive performance standards. The range of HP Lubes is
comprehensive and catering to the minutest needs; from new generation cars to ploughing
tractors and industrial machinery. The range conforms strictly to OEM specifications, often
taking the initiative in customization of products.



INDUSTRIAL
GRADE

AUTOMOTIVE HP INDUSTRIAL
GRADE SPECIALISTIES
LUBRICANT

GREASES

SUCCESS DETERMINANTS OF SELECTED LUBRICANT BRANDS

Since the study is focused on automotive lubricants and within automotive lubricant, engine oils
are taken under study within which Diesel engine oil, passenger car motor oil and four stoke oils
are taken. The various brands of HPCL in automotive segment are:
 HPCL LUBRICANT
TRANSMISSION
ENGINE OIL GEAR OIL OIL

DIESEL ENGINE OIL

PETROL ENGINE OIL

NATURAL GAS ENGINE OIL

FIRST FILLING ENGINE OIL

LUBRICANT PRODUCT LIN E IN ENGINE OIL SEGMENT

Engine oil

Passenger engine
Diesel engine oil Four stroke
oil
 LAAL GHODA CRUISE RACER 4

MILCY CRUISE CLASSIC RACER 4 EXCEL

MILCY TURBO HP ACE

HP NO1

DIESEL ENGINE OIL SEGM ENT

MILCY 40 – SAE 40 API CD

LAL GHODA – SAE 20W 40 API CF

MILCY TURBO – SAE 15W 40 API CF4

HP NO1 – SAE 15 W 40 API CI4

PASSENGER CAR MOTOR OIL

HP CRUISE - API S G 15W 40

HP ACE - API SL , 1 5W 40

FOUR STROKE OIL

RACER 4 - API SG
RACER 4- EXCEL ( API SL)
PRODUCT PORTFOLIO AND
SPECIFICATION
PRODUCT PORTFOLIO AND SPECIFICATION

LAAL GHODA 20W40

HP laal ghoda is a multigrade d iesel engine oil and economy range diesel en gine oil. It meets
API CF and US military MIL-L-2104B, IS:13656:1993 specification.
It is recommended for, use in al l types of diesel engines in truck, bus, muv, tractor, taxi, pump
set and DG set.
Characteristics / Features:

All round performance

Engine cleanliness
Efficient lubrication

Specification:
Kinematic Viscosity cSt @40 deg C 130

Kinematic Viscosity cSt @100 d eg C 13.5-16

Viscosity Index, MIN 110

Flash point, (COC) C,MIN 200

Pour Point, C , MAX -18

Sulphated Ash,%WT,MAX 0.8

TBN ,mgKOH/g,MIN 4.4

Colour Red

SUCCESS DETERMINANTS OF SELECTED LUBRICANT BRANDS

MILCY TURBO 15W 40

HP Milcy Turbo is a premium quality multi grade Diesel Engine Oil with enhanced soot
handling capacity which keeps e ngine clean and reduces soot induced wear. Ex cellent oxidation
control and sludge control help s to keep the engine in healthier condition. It meets API CF-4,
MB 228.1 & EDL-5 of IS 13656 requirements

Recommended for:
Diesel engines of heavy duty as well as light duty service of both Natural y Aspirated and
Turbocharged Engines- heavy & light commercial vehicles, tractors, multi utility vehicles, cars
& jeeps.

Characteristics / Features:
Long drain & Prolonged engine life
Good control over soot reeduces engine wear

High temperature stability reduces oxidative oil thickening

Reduced oil consumption

Specification:
Kinematic Viscosity cSt @100 d eg C 14- 15.2
Viscosity Index, MIN 120
Flash point, (COC) C,MIN 190
Pour Point, C , MAX -21
TBN, mg KOH/g, MIN 9

SUCCESS DETERMINANTS OF SELECTED LUBRICANT BRANDS

CRUISE

HP Cruise is premium quality multi grade engine oil which provides outstanding performance in
all petrol engine passenger cars. It meets API SJ/CD, MIL-L-46152D & E-PL 3/ E-DL 2 of IS:
13656:1993. Recommended as engine oil for all Passenger cars running on petrol.

Characteristics / Features:

Outstanding engine cleanliness & enhanced engine life

Excellent lubrication over a wide temperature range
Improved fuel economy
Compatible with catalytic converter.

Recommended for:
M/s Hyundai Motors India
M/s Mahindra & Mahindra Ltd.

Specification:

Kinematic Viscosity cSt @100 deg C 14-16

Viscosity Index, MIN 120
Flash point, (COC) deg C,MIN 200
Pour Point, deg C , MAX -24
Sulphated Ash,%WT,MAX 1.03
TBN ,mgKOH/g,MIN 6.0
Colour Orange

SUCCESS DETERMINANTS OF SELECTED LUBRICANT BRANDS

CRUISE CLASSIC

HP Cruise Classic is red color superior quality multi grade engine oil for cars made from high
quality base stocks and additives. It meets API SF/CC, MIL-L-46152B & E-PL 2/ E-DL 1 of
engine oil for all passenger cars running on petrol.

Characteristics / Features:

Outstanding engine cleanliness

Excellent oxidation stability

Improved wear protection & extended engine

life Improved fuel economy
Compatible with catalytic converter.

Specification:
20W40 20W50
Kinematic Viscosity cSt @100 14-16 18-20
deg C
Viscosity Index, MIN 110 118
Flash point, (COC) deg 200 200
C,MIN
Pour Point, deg C , MAX -21 -21
Sulphated Ash,%WT,MAX 1 1
TBN ,mgKOH/g,MIN 4.19 5.4
Colour Red Red

Approved by:
M/s Maruti Udyog Ltd.
M/s Hindustan Motors Ltd.
RACER 4

HP Racer 4 (20W40) is multipurpose engine oil for lubrication of engine, gear box and wet
clutches in 4- stroke two wheelers. it meets API SG and JASO T903: MA specifications. It is
recommended for use in all 4 stroke motorcycles, scooters, mopeds and scootteretes.

Characteristics / Features:

Optimized co-efficient of
friction Excellent oxidation
stability
Sludge and Varnish control
Gear anti wear and extreme pressure properties.

Specification:

Kinematic Viscosity cSt @100 deg C 1.5-15.5

Viscosity Index, MIN 110
Flash point, (COC) deg C,MIN 200
Pour Point, deg C , MAX -21
Sulphated Ash,%WT,MAX 0.82
TBN ,mgKOH/g,MIN 5.9

Approved by:

M/s Escorts Yamaha Motors

ltd. M/s Royal Enfield
Motors.
M/s Bajaj Auto.
LITERATURE REVIEW
LITERATURE REVIEW
LUBRICANT

A lubricant (sometimes referred to as "lube") is a substance (often a liquid) introduced between

two moving surfaces to reduce the friction between them, improving efficiency and reducing
wear. It may also have the function of dissolving or transporting foreign particles and of
distributing heat.

One of the single largest applications for lubricants, in the form of motor oil, is protecting the
internal combustion engines in motor vehicles and powered equipment.

A lubricant is a blend of base oils and performance enhancing additives as required by engine,
gear box and other application areas. At the refinery, the crude oil is refined into gasoline, diesel,
kerosene, LPG, naphtha and base stocks (Lube). This base stock is further processed, blended
and strengthened with required properties to make different kind of lubricants.

Typically lubricants contain 90% base oil (most often petroleum fractions, called mineral oils)
and less than 10% additives. Vegetable oils or synthetic liquids such as
hydrogenatedpolyolefins, esters, silicones, fluorocarbons and many others are sometimes used
as base oils. Additives deliver reduced friction and wear, increased viscosity, improved viscosity
index, resistance to corrosion and oxidation, aging or contamination, etc.

Lubricants such as 2-cycle oil are also added to some fuels. Sulfur impurities in fuels also
provide some lubrication properties, which has to be taken in account when switching to a low-
sulfur diesel; biodiesel is a popular diesel fuel additive providing additional lubricity.

Non-liquid lubricants include grease, powders (dry graphite, PTFE, Molybdenum

disulfide, tungsten disulfide, etc.), teflon tape used in plumbing, air cushion and others. Dry
lubricants such as graphite, molybdenum disulfide and tungsten disulfide also offer lubrication at
temperatures (up to 350 °C) higher than liquid and oil-based lubricants are able to operate.
Limited interest has been shown in low friction properties of compacted oxide glaze layers
formed at several hundred degrees Celsius in metallic sliding systems, however, practical use is
still many years away due to their physically unstable nature.
LUBE OIL BASE STOCK MA NUFACTURING

Lubricating oils need to be viscous, have stability during the heat generated b y frication of the
machine, and the viscosity shou ld not fall sharply with the rise in temperatur e due to friction.
These qualities are met by vacu um gas oils i.e. high boiling cuts distilled by vacuum distillation
of crude oil. These gas oil cuts are called lubricating oil base stocks (LOBS). All crude oil do not
give good lube base stock. For e xample waxy crude oils like Mumbai High or some South East
Asian crudes oils are not good for lube oil manufacture. Yield of suitable lub e base stocks are
lower in these cases (as the oil is light) and wax creates a lot of operational prob lems during
lube extraction process. Some of the medium heavy Middle East Crude oils give g ood quality
lube base stocks.
LUBE OIL MANUFACTURING PROCESS

The various processing steps are:

De-asphalting Unit: Asphalt from the lube base stocks is removed by solvent extraction
process.

Aromatics Extraction: Aromatic hydrocarbons are removed by solvent extraction process

to improve viscosity.

De-waxing: This is another solvent extraction process which removes wax from the lube
base stock.

Hydro-finishing: After the series of extraction processes, the lube base stock is treated
with hydrogen (hydro-finishing process) to improve color and give stability.

Finally additive chemicals in small dozes are added to boost certain properties.

ADDITIVES

Plain mineral oils cannot provide all the necessary functional properties that an engine
requires. These plain mineral oils need fortification with chemicals/additives which when used
in small quantities, import or enhance the desirable functional properties. Some of the types
and reasons for their use are as follows:

Dispersants: Keeps sludge, carbon and other deposit- precursors suspended in oil.

Detergents: Keeps the engine parts clean from deposits.

Rust/Corrosion Inhibitors: Prevents or controls oxidation of oil, formation of varnish, sludge and
corrosive compounds, limit viscosity increase.

Extreme Pressure (EP), Anti wear and friction modifiers: These form protective film on the
engine parts and reduce wear and tear.
Metal deactivators: Forms surface films so that metal surface does not catalyze oil oxidation.

Pour Point Depressant: Lowers freezing point of oils assuring free flow at lower temperatures.

Anti-foamants: Reduces foam in crankcase and blending.

GRADES

The Society of Automotive Engineers (SAE) has established a numerical code system for
grading lubricants (motor oils) according to their viscosity characteristics. SAE viscosity grading
include, from low to high viscosity: 0, 5, 10, 15, 20, 25, 30, 40, 50 or 60. The numbers 0, 5, 10,
15 and 25 are suffixed with the letter W, designating their "winter" (not "weight") or cold-start
viscosity, at lower temperature. The number 20 comes with or without a W, depending on
whether it is being used to denote a cold or hot viscosity grade. The document SAE J300 defines
the viscometrics related to these grades.

Kinematic viscosity is graded by measuring the time it takes for a standard amount of oil to flow
through a standard orifice, at standard temperatures. The longer it takes, the higher the viscosity
and thus higher SAE code.

Note that the SAE has a separate viscosity rating system for gear, axle, and manual transmission
oils, SAE J306, which should not be confused with engine oil viscosity. The higher numbers of a
gear oil (eg 75W-140) do not mean that it has higher viscosity than an engine oil.

Single/ Mono-grade

A single-grade engine oil, as defined by SAE J300, cannot use a polymeric Viscosity Index
Improver (also referred to as Vicosity Modifier) additive. SAE J300 has established eleven
viscosity grades, of which six are considered Winter-grades and given a W designation. The 11
viscosity grades are 0W, 5W, 10W, 15W, 20W, 25W, 20, 30, 40, 50, and 60. These numbers are
often referred to as the 'weight' of a motor oil.
For single winter grade oils, the dynamic viscosity is measured at different cold temperatures,
specified in J300 depending on the viscosity grade, in units of mPa·s or the equivalent older non-
SI units, centipoises (abbreviated cP), using two different test methods. They are the Cold
Cranking Simulator (ASTM D5293) and the Mini-Rotary Viscometer (ASTM D4684). Based on
the coldest temperature the oil passes at, that oil is graded as SAE viscosity grade 0W, 5W, 10W,
15W, 20W, or 25W. The lower the viscosity grade, the lower the temperature the oil can pass.
For example, if an oil passes at the specifications for 10W and 5W, but fails for 0W, then that oil
must be labeled as an SAE 5W. That oil cannot be labeled as either 0W or 10W.

For single non-winter grade oils, the kinematic viscosity is measured at a temperature of 100 °C
(212 °F) in units of mm²/s or the equivalent older non-SI units, centistokes (abbreviated cSt).
Based on the range of viscosity the oil falls in at that temperature, the oil is graded as SAE
viscosity grade 20, 30, 40, 50, or 60. In addition, for SAE grades 20, 30, and 40, a minimum
viscosity measured at 150 °C (302 °F) and at a high-shear rate is also required. The higher the
viscosity, the higher the SAE viscosity grade is.

For some applications, such as when the temperature ranges in use are not very wide, single-
grade motor oil is satisfactory; for example, lawn mower engines, industrial applications, and
vintage or classic cars.

Multi-grade

The temperature range the oil is exposed to in most vehicles can be wide, ranging from cold
temperatures in the winter before the vehicle is started up to hot operating temperatures when the
vehicle is fully warmed up in hot summer weather. A specific oil will have high viscosity when
cold and a lower viscosity at the engine's operating temperature. The difference in viscosities for
most single-grade oil is too large between the extremes of temperature. To bring the difference in
viscosities closer together, special polymer additives called viscosity index improvers, or VIIs
are added to the oil. These additives are used to make the oil a multi-grade motor oil, however it
is possible to have a multi-grade oil without the use of VIIs. The idea is to cause the multi-grade
oil to have the viscosity of the base grade when cold and the viscosity of the second grade when
hot. This enables one type of oil to be generally used all year. In fact, when multi-grades were
initially developed, they were frequently described as all-season oil. The viscosity of a multi-
grade oil still varies logarithmically with temperature, but the slope representing the change is
lessened. This slope representing the change with temperature depends on the nature and amount
of the additives to the base oil.

The SAE designation for multi-grade oils includes two viscosity grades; for example, 10W-30
designates common multi-grade oil. The two numbers used are individually defined by SAE
J300 for single-grade oils. Therefore, an oil labeled as 10W-30 must pass the SAE J300 viscosity
grade requirement for both 10W and 30, and all limitations placed on the viscosity grades (for
example, a 10W-30 oil must fail the J300 requirements at 5W). Also, if an oil does not contain
any VIIs, and can pass as a multi-grade, that oil can be labeled with either of the two SAE
viscosity grades. For example, very simple multi-grade oil that can be easily made with modern
base oils without any VII is a 20W-20. This oil can be labeled as 20W-20, 20W, or 20. Note, if
any VIIs are used however, then that oil cannot be labeled as a single grade.

The real-world ability of an oil to crank or pump when cold is potentially diminished soon after
it is put into service. The motor oil grade and viscosity to be used in a given vehicle is specified
by the manufacturer of the vehicle (although some modern European cars now have no viscosity
requirement), but can vary from country to country when climatic or fuel efficiency constraints
come into play.

Turbine

Turbine motor oils are designed somewhat differently than reciprocating engine oils traditionally
used in automobiles. Deposit control and corrosion are not significant issues when formulating
turbine oil, and the shear stresses that turbine oils are exposed to are minimal in light of the fact
that turbines are naturally balanced rotating machines unlike reciprocating engines. Turbine oils
tend to have the ISO VG range 32, 46, and 68 (cst at 40 °C/104 °F), and make extensive use of
diester, polyolester, polyalphaolefin and Group II as base stock due to the high temperatures they
must withstand. Some jet turbine oils contain an amount of polyglycols. Varnish is one of the
most problematic contaminants, leading to sticking components, reduced oil flow and increased
wear. Most routine oil analysis tests cannot determine the formation of varnish. The most widely
accepted process for measuring varnish formation is with Membrane Patch Colorimetry testing
although the ultra centrifuge test is also run by a few laboratories.
In most aviation gas turbine applications, peak lubricant temperatures are not reached during
engine operation, but after shutdown, when heat has been able to migrate from the combustor
cans and the compressors into the regions of the engine with lubricated bearings and gearboxes.
The gas flow associated with running the turbine provides significant convective cooling that
disappears when the engine is shutdown, leaving residual heat that causes temperatures within
the turbine to rise dramatically, an often-misunderstood phenomenon.

SPECIFICATION:

The lubricant is said to meet a certain specification. In the consumer market, this is often
supported by a logo, symbol or words that inform the consumer that the lubricant marketer has
obtained independent verification of conformance to the specification. Examples of these include
the API’s donut logo or the NSF tick mark.

The most widely perceived is SAE viscosity specification, like SAE 10W-40. Lubricity
specifications are institute and manufacturer based. In the U.S. institute:

API S for petrol engines

API C for diesel engines.

The current specs are API SM and API CJ. Higher second letter marks better oil properties, like
lower engine wear supported by tests.

In EU the ACEA specifications are used. There are classes A, B, C, E with number following the
letter.

Japan introduced the JASO specification for motorbike engines.

SOCIETIES AND INDUSTRY BODIES FOR STANDARDIZATION OF LUBES:

API
American Petroleum Institute
STLE
Society of Tribologists and Lubrication Engineers
 NLGI
National Lubricating Grease institute
SAE
Society of Automotive Engineers
ILMA
Independent lubricant manufacturer association
ACEA
European Automobile Manufacturers Association
JASO
Japanese Automotive Standards Organization

APPLICATION OF LUBES:

Lubricants are mainly used is three sectors automotive, industrial and aviation. There are
numerous application of lubes in these sectors, some of these applications are listed below:

Automotive

Engine oils

Petrol (Gasoline) engine oils

Diesel engine oils

Automatic transmission fluid

Gearbox fluids
Brake fluids
Hydraulic fluids
Tractor (one lubricant for all systems)
Universal Tractor Transmission Oil – UTTO

Super Tractor Oil Universal – STOU – includes engine

Other motors
2-stroke engine oils
Industrial

Hydraulic oils

Air compressor oils

Gas Compressor oils
Gear oils

Bearing and circulating system

oils Refrigerator compressor oils
Steam and gas turbine oils

Aviation

Gas turbine engine oils

Piston engine oils
Marine
Crosshead cylinder oils

Crosshead Crankcase
oils Trunk piston engine
oils Stern tube lubricants

LUBRICANT COMPANIES:

Public Sector Undertakings (PSUs):

Indian Oil Corporation Limited (IOCL)

Hindustan Petroleum Corporation Limited (HPCL)

Bharat Petroleum Corporation Limited (BPCL)

Private Players:

Reliance
Petroleum Castrol
Elf Total-Fina
 Gulf

Shell Oil
Caltex
Pennzoil
Mobil

MARKETING CHANNELS:

The marketing channels for automotive lubricants in India consist of the following,

Petrol Stations

Wholesale Distributors
Lube Oil Shops
Auto Spare Shops

Authorized Service Stations

Garages

Rural & Agricultural dealers

Super Markets.
 INDIAN
LUBE MARKET
 MARKET STRUCTURE

ERA OF LIBERALIZATION

Prior to 1992 the lube industry in India was controlled by the 4 major Public Sector Oil companies
namely Indian Oil, HPC,BPC & IBP and a handful of private companies like Castrol, Gulf,
Tidewater & others. With the distribution & canalization of base oil import being controlled by
the Government of India, the PSU Oil Companies controlled 90% of the market share. The de-
canalization of the lube base oil imports in 1993 by the Govt. of India followed by reduction of
import duty on lube base oils from 85% to 25% and gradual scrapping of administered pricing
observed the announcement of almost a new lube venture every month during 1994. Most of the
new entrants formed associations with Indian companies both in the Private and Public sectors.

INDIAN AUTOMOTIVE LUBRICANT MARKET

Total demand for finished lubricants in India is estimated at over 1,600 kilo tones. The Lube
market consists of two major segments, automotive and industrial.

The Indian automotive lubricants market is largely price sensitive and volume growth is
stagnating due to longer lasting lubricants. The market is fragmented with over 22 big and small
manufacturers and with the spate of mergers and acquisitions (M&A), only a handful of big
companies enjoy a major market share.

Companies are adopting a more customer-oriented approach where they are likely to focus on
creating brand awareness through print and visual media. For example promotional campaigns
and trade shows offering gifts to their customers are methods of driving sales of automotive
lubricants.

The original equipment segment and retail trade are the two major marketing channels in the
Indian automotive lubricants market. Due to the growing competition, tie-ups with original
equipment manufacturers (OEM) are becoming important as they reinforce the value proposition
of a particular brand.
Petrol pumps form a major distribution channel in retail trade, however sales of lubricants
through retail outlets (also called ‘the bazaar trade’) has transformed the Indian automotive
lubricants market into a fast moving consumer goods (FMCG) sector. The other marketing
channels are authorized service stations, garages, rural and agricultural dealers, super
markets, and wholesale distributors

Public sector unit (PSU) companies, that manufacture their own base oil, follow different
distribution strategies as compared to private participants that solely dependent on imports.
While PSUs sell through their own wide spread network of petrol stations private
manufacturers prefer retail outlets.

Engine oil, which accounted for over 70.0 percent market share in 2004 in the Indian
automotive lubricants market, plays the most crucial role in deciding the market share of
manufacturers. Increase in demand for four stroke motorcycles, tie ups with original
equipment manufacturers, and implementation of new pollution norms are just some of the
key drivers of the engine oil segment.

The brake oil and coolant is the next largest segment in the Indian automotive lubricants
market. Demand for coolants is increasing due to continuous growth in heavy commercial
vehicles, increasing awareness among the customers, new cooling system technologies, and
OEM tie-ups.

In brake oil segment, increasing growth in light commercial vehicles, introduction of new
brake systems, and consumption of lubes by commercial passenger vehicles, and changing
customer mindset regarding specialty lubricants are expected to push demand further.

The market for gear oils is also growing rapidly and has a high potential due to the increasing
number of vehicles on the road. New generation vehicles with advanced gear system
technologies and automatic transmission systems require special type of lubricants resulting
in greater demand for multi axel gear oil and API synthetic gear oil, API GL-5, API MT-1,
and ultra-Matic, which reduce the oil changing intervals.

In the long term, the overall outlook for the automotive lubricants market is expected to be
positive due to the growing Indian economy along with the increased purchasing power of
consumers.
MARKET SIZE AND GROWT H RATE
Segment wise market share

Sales

40

AUTOMOTIVE
60
INDUSTRIAL

Indian Lubricant market comprises about 0.90 MMTPA of the automotive segment and 0.60
MMTPA of the industrial/direct segment.
The Indian automotive lubricant market is the sixth largest market in the world with revenues
of approximately $1.30 billion. Total production of automotive lubricants in India is
approximately 8 to 10 percent of global lube production. Indian lube industry has an annual
demand of 1 million tones. Unlike other countries where lubricant demand has witnessed
stagnation, the Indian market has been growing at approximately 7 percent per annum for the
past 2 years. The public sector contributes to over 60 percent of the revenues for this market.
MNC’s have 5 percent market share and the remaining share is held by the unorganized
sector. Automotive lubricants are further divided into diesel lubes and petrol lubes. Diesel
lubes comprise 70 percent of the market and petrol based lubricants cover the rest. As diesel
lubes are used by commercial vehicles, which have to cover greater distances, their market
share is higher. Engine oil constitutes around 83 percent of total sales volumes. Gear oils,
transmission fluids, hydraulic brake fluids, and engine coolants contribute to the balance.
MARKET TERND

In the recent past, the Indian lubricant market has witnessed a phase of consolidation.
Multinationals with better technology, brand name and finances have the power to launch
themselves on their own in the market. However, with increasing number of competitors it is
not possible for everyone to carve a niche in the market. This sector has witnessed
considerable amount of mergers and acquisitions. British Petroleum’s not so recent
acquisition of Castrol is one example. The Indian lubes market is a combative market place
and lubricant companies find themselves fighting a tough battle for survival. In the OE sector
also lubricant manufacturing, companies are entering into collaborations with vehicle
manufactures. Maruti Udyog, Hyundai Motors, Hindustan Motors, TAFE, Toyota, and Skoda
have entered into collaboration with IOC and Castrol for some of their models

AUTOMOTIVE INDUSTRY

The growth of lubricant industry is directly linked with the growth of automobile
industry.
Therefore to grow in lubricant market one has to keep the growth record of automobile
industry.

India is the 4th largest car market in Asia (after Japan, Korea & China). For commercial
vehicles, it holds 5th spot in the world. Whereas, for 2-wheelers, India is the second largest
market, next only to China, with both countries accounting of over 50% of global two
wheeler production and sales. The Tractor segment is also making steady progress in India.
According to McKinsey Report – “Auto Components Industry: Vision 2015,” the Indian
Auto Components Industry is envisaging to grow to US$ 33-40 Billion, by 2015 from around
US$ 7 Billion, at present.

LUBRICANT INDUSTRY SEGMENTATION

The lubricant industry can be divided into two major categories i.e., Automotive &
Industrial brand of lubricants. The industrial segment basically comprises of Core Sector
industries like Defense, Railways, State Transport Undertakings, Steel Plants, Coal Mines,
Fertilizers, Power Houses, and Chemicals & Heavy Engineering Industries. In the industrial
segment, the PSUs could successfully maintain their stronghold due to the reasons that the
requirement is most end use specific, customer focused, productivity linked & service
oriented. Here, price, quality, performance track record, R&D infrastructure for technology
up gradation and product development for end use specific application & after sales service
play the most significant role
& FMCG techniques of promotion and creating illusions takes a back seat. The automotive
segment which accounts for major share i.e., 67% of the lubricant market became soft target
for new entrants and here private sector players could immediately consolidate their market
share by adopting FMCG techniques. PSU oil companies initially restricted their channel of
distribution through their large infrastructure of marketing network i.e, petrol stations &
distributor network.

The focus happened to be on ensuring quality & customer accountability and restrict
mushrooming of spurious trade in bazaar through the marketing channels where some kind
of control could be exercised by the company. The major thrust put by Industry leader like
Indian Oil at this juncture was to promote brand visibility and creation of brand image
through endorsement, TV advertisements & image building at Retail sites.
RESEARCH METHODOLOGY
Objectives of study
 To assess the current sales scenario of HP lubricants in Bengaluru
 To analyze the market competitors of HP lubricants in the area
 To assess any opportunities and threats in the market for HP lubricants

Scope of the Study

 To understand the current lubricant market
 To find the potential of the HP Lubricants in Bengaluru
 To visit the retail stores frequently and collect the primary data
 To analyze the Consumer Perception of lubricants of various brands and types
Limitation of the Study
 The duration of internship was of two months only, it is difficult to understand the
whole company, division, product portfolio, business and then understand the lacunae
in the process and impact created by it in such a short span.
 The responses obtained from RO owner/manager in the form of questionnaire can be
biased due to less sample size and hence the study cannot be largely generalized.
 Another limitation of the project is geographical area, due to lack of time and as I
alone was not able to cover whole Bengaluru region my research is limited to specific
and potential areas surrounding the chosen Retail Stores.
PROBLEM DEFINATION AND APPROACH TO THE PROBLEM

Project is about “Study sales supportive team in bazaar lubs segment”. To identify the
determinants for the success of lubricant brands of HPCL in the diesel engine oil segment,
passenger car motor oil segment and four stroke segment.

How the market dynamics work for the lubricant brands, which factor influences the most for
the sale of any particular brand whether brand name, image, promotion etc.

RESEARCH OBJECTIVE

To portray the lubricant market in India, it’s historical background, liberalization and
current state of competitiveness.

To identify the key reason for low sale of successful lubricant brands launched by
Hindustan Petroleum Corporation Limited (HPCL) from retail outlet.
To identify the brand success factors of selected lubricant brands launched by HPCL.

Applying various marketing models on HPCL lubricant brands- Poter’s Five Forces,
SWOT Analysis etc.

Before starting the research work some of reasons for the success of any lubricant brands
were shortlisted through literature review.
The basic objective is success determinants of four lubricant brands of HPCL in the three
segment- Diesel Engine Oil, Passenger Car Motor Oil and Four Stroke oil. The selections of
brands made for the study was based on sale of each brand in the Indian market i.e., highest
selling brands for the past three were shortlisted for the study. Two largest selling brands
each of diesel engine oil and passenger car motor oil and one for four stroke oil were taken.
The brands included were:
 Diesel Engine Oil- Laal Ghoda and Milcy Turbo

Passenger Car Motor Oil- Cruise and Cruise

Classic Four Stroke- Racer 4

Choice of Research Design

A research design provides the framework to be used as a guide in collecting and

analyzing data. Research would describe things, such as the factors which affect the
market potential for the product - Lubricants or the demographics and attitudes of
channel partner who are responsible for lubricant business. The research will also
describe the opinions of the dealer or end consumer about the product perception, role
of distributor and company role in sales promotional activity, branding, competition
from other channel partners.
Data collection form design
Sampling design and Sampling size
 Target Population: Retailers
 Technique: Probability Method as sampling is done in a random selection
method where different units in the population have equal probability of being
chosen, the method is probabilistic in nature
 Sampling Method: Convenient sampling
In our study, each possible sample of a given size has a known and equal
probability of being the sample actually selected. Thus as all elements are
selected independently it is simple random type of sampling.
 Sample Size: 48 Retail Shops
 Extent:Bengaluru
 Period: 2 months

Field survey
Having prepared the format and selected the sample design and size of sample, the
next step was to conduct the field survey which includes two most important aspects:-
 Interviewing
 Supervision of field work

Data Analysis
In order to derive meaningful results from the feedbacks collected via questionnaire
through field survey, the data has been analyzed by various tools.

Research report preparation

Once the data have been tabulated, interpreted and analyzed, the final report is
prepared embodying the findings of the research study and recommendations or
policy prescription for the organization.
 Results and Analysis
Knowing customer
Important to know who are the target customer from where the maximum business is coming
from .Data is been collected from different RO to know about their customer, Customer been
divided in various group .

.Individual Customer
.Mechanic
.Fleet owner
.All of the above

Highest demand of product

Reason for low sale of lubricant

Promotional activity in RO
Factors which affects the most in sale
Incentive program for employ

Product-Brand Presence& Area Distribution

 Company Product Presence
50
45
40
35
30
25
20
15
10
5
0

Axle GL5 85W140

MAK ATF A
MAK Spirol EP90

ATF Dex II
MAK Spirol HD80W90

Gear Drive XP85W140

Spirax S2 G 80W90
MAK Spirol EP140

Manual GL 4 80W90

Gear Gard EP 90
Spirax S1 ATF TASA
MAK Spirol HD85W140

Axle 140

Valvoline TASA Fluid

Gear Drive EP90

Gear Gard EP 140

Gear Gard 80W90
Gear Drive EP140

Servo Gear Super 85W150

Spirax S2 G 90
Gear Drive XP80W90

Servo Gear HP 90
Servo Gear HP 140
Servo Gear Super 80W90

Manual GL 4 90

Gear Gard Super 85W140

Automatic Transmission Fluid A

Servo Transfluid A

BPCL HPCL IOCL Castrol Shell Valvoline

Inferences-
Brand-
 The brand with maximum presence in the market is Castrol despite of higher prices
and lower than that of other brands and their products

 Among PSU players in Lubricant industry, HPCL tends to be having a significant

market share due reasons differing from retailer to retailer.

 Other brands like Motul, Gulf Oil, Veedol, Balmrol and local brands like Janathol are
present in the market with negligible share.
 Brand Presence
IOCL HPCL BPCL Castrol Shell Valvoline

10% 10%

15% 19%

11%

35%

Inference
Statistic

Summary of survey

Monthly sale or
Who are your Monthly sale of No of footfall per day
Name of RO:- consumption of
customers . Petrol and Diesel . .
lubricants .

R P enterprises. individual person 1 410 3500

Sri sathya sai. all of the above 0.8 200 5000

H P auto care centre individual person 120 600 800

SATHY'S service
fleet owners 0.5 250 1000
station
suhaas fuels all of the above 0.08 150 800
p. satyanarayana
all of the above 0.4 700 500
company
Bharathi service
individual person 0.4 310 800
station

Joyce service station individual person 1 300 800

Rajarajeshwari
all of the above 100 40 4000
service station
Shree raghuvendra
individual person 0.3 320 500
fuels
Gautam service
all of the above 0.1 320 2200
station
East end service
individual person 0.3 300 500
station
COMCO individual person 1.3 1300 1000
VIJAY gasoline all of the above 0 1100 1100
Jai hind service
fleet owners 3 340 240
station
sai service station all of the above 0.6 400 2500
venkus & co. individual person 0.5 550 1700
HP auto care centre all of the above 0.02 400 2500
A.M. SAMYULLA individual person 3 12 500
DIVYA fuel point individual person 0.5 780 1000
SAANVI HP fuel individual person 1 400 1000
HP auto care individual person 1 600 1000
 Vrishabhadri ent. individual person 1 650 3300
Favourite auto
individual person 550 670 3000
centre
Hp auto care individual person 0.9 1100 1000
comco individual person 0.4 400 500
shri venkantandi
all of the above 0.4 450 2000
service station
for coles all of the above 0.3 350 3500
city service station individual person 1 600 600
Maruthi service
fleet owners 0.3 700 1200
station

AMARAVATHI Mechanic;individual
2.5 1000 1200
FUEL STATION person;fleet owners

BALAJI S/S -
individual person 0.1 900 1200
ADHOC

BRAHMARAMBA Mechanic;individual
0.35 900 1800
FUEL STN person;fleet owners

CHARVI FUEL
individual person 2.3 1350 1500
PARK
DIVYA FUEL
individual person 0.9 1100 1200
POINT
DIVYA FUEL
individual person 0.6 1100 1600
POINT
FAVOURITE
individual person 1 1400 3000
AUTO SERVICE
GAUTHAM S/S individual person 1.2 1100 1800
HIGHWAY AUTO Mechanic;individual
4.5 2200 3000
NEEDS person
JAI HIND S/S individual person 1.3 1400 1900
JAYJEE SERVICE individual person 1.6 1900 2200
Mechanic;individual
KAMAL S/S 1.1 1300 1600
person
Mechanic;individual
LAKSHMI S/S 1.1 1150 1700
person
LIBERTY S/S R V Mechanic;individual
1.8 1900 2100
ROAD person
LOHITA FUEL Mechanic;individual
0.6 1200 1500
PARK person
A.M.SAMYULLAH Mechanic;individual
0.6 1500 1900
, MYSORE ROAD person
ADITYA
individual person 1.1 1350 1900
ENTERPRISES
Analysis

Monthly Sale of Lubricant and Petrol Diesel Monthly sale of Lubricant and No. of
Footfall per day

Regression
Regression
Statistics
Statistics
Multiple R 0.080559513
Multiple R 0.213156002
R Square 0.006489835
R Square 0.045435481
Adjusted R Square -0.015588169 Adjusted R
0.024222936
Square
Standard Error 83.11856374 Standard
81.47315164
Error
Observations 47 Observations 47

Coefficients
Coefficients
Intercept -10.92457924
Intercept 27.43214436 No of
Monthly sale of footfall per 0.016757711
-0.012724575
Petrol and Diesel . day .

Inference

As we can see that the correlation between Lubricant and petrol diesel is coming only 8% which is
very less and on the other hand correlation between lubricant and no. of footfall per day is also
coming very less only 21%.We cannot say there is any relation with sale of petrol and diesel with
lubricant sale. As both product require to treat as independent product, must be require separate
marketing plan to increase sale from RO.