Market Study at BAPCO 1

“MARKET STUDY AT BAPCO”

An Internship report submitted in partial fulfilment of requirements for
Bachelor of Business Administration (Oil and Gas Marketing), May, 2018 –
July, 2018
Under the Guidance of

Internal Guide External Guide

Dr. Ankur Mittal Mr. Rajiv Ranjan

Associate Professor Sr. Vice President- Sales & Marketing
School of Business (SOB), UPES BAPCO Lubricants – Venture Impex,
Dehradun Mumbai, Maharashtra

Submitted By:-

Prabhu Agrawal

500050555

BBA (Oil and Gas Marketing)

2016-2019

School of Business (SOB), UPES

 Market Study at BAPCO 2

STUDENT DECLARATION

I hereby declare that this submission is my own work and that, to the best of my knowledge
and belief, it contains no material previously published or written by another person nor
material which has accepted for the award of any other degree or diploma of the university or
other institute of higher learning, except where due acknowledgement has been made in the
text.

Prabhu Agrawal

500050555

BBA (Oil and Gas Marketing)

2016-2019

School of Business (SOB), UPES

 Market Study at BAPCO 3

ACKNOWLEDGEMENT

I have taken efforts in this project. However, it would not have been possible without the kind
support and help of many individual and organization. I would like to extend my sincere
thanks to all of them.

I am highly indebted to Mr. Rajiv Ranjan Sir (Sr. Vice President- Sales & Marketing- Bapco
Lubricants) for his guidance and constant supervision as well as for providing necessary
information regarding the project & also for his support in completing the project.

I also want to express my warm thanks to my project internal guide Dr. Ankur Mittal Sir
(Associate Professor) and my oil and gas faculty Mr. Anirudh Singh Sir for their friendly
advice during the project work. I am sincerely grateful to them for sharing their truthful and
illuminating views on a number of issues related to the project.

My thanks and appreciation also goes to my colleague in developing the project and people
who have willingly helped me out with their abilities.
 Market Study at BAPCO 4

CERTIFICATE
This is to certify that the summer internship report entitled Market Study at BAPCO
submitted by Prabhu Agrawal to Bapco Lubricants India- Venture Impex for partial
fulfilment of requirements for Bachelor of Business Administration (Oil and Gas Marketing)
is a bonafide record of the internship work carried out by him under my supervision and
guidance. The content of the report, in full or parts have not been submitted to any other
institute or university for the award of any other degree or diploma.

Mr. Rajiv Ranjan

Senior Vice President- Sales & Marketing

Bapco Lubricants- Venture Impex

 Market Study at BAPCO 5

CERTIFICATE
This is to certify that the summer internship report entitled Market Study at BAPCO
submitted by Prabhu Agrawal to Bapco Lubricants India- Venture Impex for partial
fulfilment of requirements for Bachelor of Business Administration (Oil and Gas Marketing)
is a bonafide record of the internship work carried out by him under my supervision and
guidance. The content of the report, in full or parts have not been submitted to any other
institute or university for the award of any other degree or diploma.

Dr. Ankur Mittal

Associate Professor

School of Business (SOB), UPES Dehradun

 Market Study at BAPCO 6

CONTENT
SI.NO. TOPIC PAGE NO.

1. ABOUT BAPCO

2. RESEARCH METHODOLOGY

3. LITERATURE REVIEW

4.

5.
Market Study at BAPCO 7
 Market Study at BAPCO 8

EXECUTIVE SUMMARY

Title of the Project: Market study at BAPCO.

Objective of the Project: BAPCO Lubricants offers world class lubricants and is a preferred
OEM brand for many companies. So, the objective of this project is to help the company in
understanding the market and further elucidate the preference and market alignment of
current dealers.

Understanding the market includes:

 Interact with the new as well as established lubricant dealers in Jaipur region.
 Understanding the dealers mind set and enquires about the current volumes of sales.
 Understanding the intermediated that influences the choice of lubricant for a dealer.
 The expected and perceived profit expected and the investment that one is ready to
make.
 Reporting the finds in the form of questionnaire attached.

Methodology: Literature review through secondary data, then expert opinion by interviewing
various dealers of other brands within the Jaipur region and interviewing the bazaar shop and
retail outlet owners.

Findings and Conclusions: After collecting the necessary data and the opinions of the
interested parties I reach to the conclusion that the company will get success only if it
promotes its brand in an effective way in the Jaipur region because there are already well
established brands operating in the market with huge market share. The company should
focus upon:

 The marketing of the product.

 Creating brand awareness through (above the line and below the line advertising).
 Approved the company’s lubricant with Indian OEM’S.
 Market Study at BAPCO 9

ABOUT BAPCO
Bapco is a one of a kind organization, which has never stopped. The first to find oil in the
Arabian Peninsula in 1932, it began trading in 1934 and refining in 1936. From that point
forward, the organization has helped shape the advanced Kingdom of Bahrain, not just
through the age of riches, but rather through the improvement of Bahrain's labour. Over 80
years after the organization's foundation, new desire in investigation, and new activities in oil
and gas field improvement and new worldwide markets keep on opening up with fast
headway occurring in the organization. Entirely claimed by the Government of Bahrain,
Bapco is occupied with the oil industry including refining, appropriation of oil based goods
and gaseous petrol, deals and fares of raw petroleum and refined items. The organization
claims a 264,000 barrel-a-day refinery, storerooms for in excess of 14 million barrels, a
showcasing terminal and a marine terminal for its oil based commodities. 95% of the
organization's refined items are trades. Bapco is principally connected with investigation,
refining, stockpiling, creation, advertising, preparing and improvement, and ecological
activities in the kingdom. Bapco is very nearly a noteworthy refining development venture
which intends to deliver high esteem items on account of the long haul future, and
additionally tend to the earth and goad better effectiveness. Our prime clients for unrefined
petroleum and refined items situated in the Middle East, India, the Far East, South East Asia
and Africa.

VISION

 To be recognised as a dynamic and empowering national energy company competing

globally.

MISSION

 To reasonably oversee and work a coordinated vitality business, utilizing best

practices and making an incentive for investors, clients and representatives.

PURPOSE

 Conveying vitality to the world for the persisting thriving of the Kingdom of Bahrain.

PROMISE

 Remaining in front of our client's vitality needs.

VALUES

 Enterprising
 Trusted
 Committed

TAGLINE

 Empowering progress
 Market Study at BAPCO 10

HISTORICAL MILESTONES

Year Event
1929 BAPCO established by Standard Oil Company of California
1932 First oil discovery in the Arabian Gulf
1934 First shipment of crude oil
1936 The Bahrain Refinery - with a capacity of 10,000 barrels per day - opened
1945 A-B pipeline laid between Bahrain and Saudi Arabia; then the world’s longest commercial
submarine pipeline

1948 Discovery of natural gas

1968 Bahrain Refinery expansion programme completed with 250,000 barrel-a-day capacity
1976 Incorporation of the Bahrain National Oil Company (BANOCO)
1980 Establishment of Supreme Council for Oil under the chairmanship of H.R.H Prince Khalifa bin
Salman Al-Khalifa, the Prime Minister

1980 The Petroleum Marketing Unit is set up in the Ministry of Development & Industry with the aim
of marketing the Government’s 60% share of products from the Bahrain Refinery

1981 BAPCO reconstituted as a joint venture refining company owned 60% by the Bahrain
Government and 40% by Caltex

1982 BANOCO assumes full and direct responsibility for production of oil and gas from Bahrain field
1985 Incorporation of Bahrain Aviation Fuel Company (BAFCO) in which BANOCO shares 60%,
Caltex 27% and BP 13%

1992 Inauguration of Dar An-Naft (oil meusum) in line with 60 years of oil discovery
1994 The Bahrain Refinery awarded ISO 9002 Certification from British Standards Institution (BSi)
1997 The Bahrain Government assumes 100% ownership of the Bahrain Refinery
1999 The new BAPCO is formed following the merger between The Bahrain Petroleum Company
B.S.C. and The Bahrain National Oil Company

2000 Start of petroleum products in-line blending and introduction of unleaded gasoline to the local
market

2001 Kerosene Merox units commissioned as part of the Refinery Modernisation Plan
2002 Launch of new Bapco Strategic Direction
2004 Contract signed to execute Low Sulphur Diesel Production Project
2005 US$1.1 billion finance secured for investment programme
2007 Start-up of Ultra Low Sulphur Diesel Complex in line with 75 years of oil discovery
2009 Bapco achieves EMS ISO 14001 certification
2010 Incorporation of Tatweer Petroleum Company, to assume responsibility for the stewardship and
redevelopment of the Bahrain Field

2011 Inauguration of the US$430 million Lube Base Oil Plant (LBOP) The first shipment of Group III
Very High Viscosity Index (VHVI) Lubricant Base Oils was exported.

2012 Launch of Sadeem Fuel Card

 Market Study at BAPCO 11

BAPCO LUBRICANTS

Lubricants can hugely affect the task of your vehicle and business. Picking, utilizing and
overseeing them effectively can get critical prizes in terms of enhanced effectiveness and
productivity. Find how Bapco's innovation driving greases can assist you with improving
your vehicle or business execution. Get some answers concerning the master counsel and
bolster we give through our ointment related administrations. Our insight into worldwide
business situations and our group's expansive experience of working in an extensive variety
of nations can give the know-how to suit local needs.

Bapco Lubricants are figured by exceptionally trend-setting innovations and work with each
kind of current motor and hardware. We offer an excellent scope of oils and oils to help
influence your vehicles and activities to run all the more effective. From the most recent
innovation manufactured items to attempted and tried standard lubricants, every one of our
item families is intended to help make it simple for you to choose the best oils and oils for
your requirements.

The most recent offering from Bapco is a scope of world-class oils with "Confirmation of
Performance". The range includes Full synthetic, Semi-synthetic and mineral scope of
ointments. The majority of the items are endorsed by driving OEMs like Porsche, Mercedes,
VOLVO, Man, Scania, Cummins and so forth to give some examples.
 Market Study at BAPCO 12

RESEARCH METHODOLOGY
 Market Study at BAPCO 13

RESEARCH METHODOLOGY
 Market Study at BAPCO 14

PROBLEM DEFINATION AND APPROACH TO THE PROBLEM

The project is about “Market study at BAPCO” which involves helping the company in
understanding the market and further elucidates the preference and market alignment of
current dealers. The study deals with the market strategy which the organisation should
follow to entered into the market.

RESEARCH OBJECTIVE

 Understand the existing lubricant market.

 Visiting and interacting with the established as well as new dealers, retailers, OEM’s
workshops, mechanics etc.
 Understand the dealers mind set and enquire about the current volumes of sales.
 Creating brand awareness and demand of the company’s products.
 Finding New Avenues of Dealership for BAPCO Lubricants.
 Understanding the intermediated that influences the choice of lubricant for a dealer.

Before starting the research work some of reasons for the success of any lubricant brands
were shortlisted through literature review.

RESEARCH DESIGN

At first necessary information is collected from the Authorised dealers of Established brands.
The information obtained from the dealers helps in preparing the important questions and
then the field work was carried out. Field work included interviewing the bazaar shop and
retail outlet owners.

FIELD OR DATA COLLECTION

Field work was based on collecting the data from bazaar shop and retail outlet. The survey
was conducted with the help of questionnaire to identify the market potential of Jaipur region
and to identify which lubricant brand is ruling the Jaipur market.

DATA PREPARATION AND ANALYSIS

After data had been collected it was analysed and based upon it various graphs (showing
market share etc.) are plotted.
 Market Study at BAPCO 15

LITERATURE REVIEW
 Market Study at BAPCO 16

LITERATURE REVIEW

LUBRICANT

A lubricant (once in a while alluded to as "lube") is a substance (frequently a fluid)

acquainted between two moving surfaces with lessen the grinding between them, enhancing
productivity and decreasing wear. It might likewise have the capacity of dissolving or
transporting outside particles and of conveying heat.

One of the single biggest applications for ointments, as engine oil, is securing the inward
burning motors in engine vehicles and fuelled hardware.

A lubricant is a blend of base oils and execution improving added substances as required by
the motor, gearbox and other application territories. At the refinery, the raw petroleum is
refined into gas, diesel, lamp fuel, LPG, naphtha and base stocks (Lube). This base stock is
additionally prepared, mixed and reinforced with expected properties to make an alternate
sort of lubricants.

Regularly oils contain 90% base oil (frequently oil divisions, called mineral oils) and fewer
than 10% added substances. Vegetable oils or engineered fluids, for example, hydrogenated
polyolefin, esters, silicones, fluorocarbons and numerous others are in some cases utilized as
base oils. Added substances convey decreased grating and wear, expanded thickness,
enhanced consistency list, protection from erosion and oxidation, maturing or tainting, and so
forth.

Greases, for example, 2-cycle oil are additionally added to a few energizes. Sulphur
contaminations in fills likewise give some grease properties, which must be considered when
changing to a low sulphur diesel; biodiesel is a prominent diesel fuel added substance giving
extra lubricity.

Non-fluid ointments incorporate oil, powders (dry graphite, PTFE, Molybdenum disulphide,
tungsten disulphide, and so on.), Teflon tape utilized as a part of pipes, air pad, and others.
Dry greases, for example, graphite, molybdenum disulphide and tungsten disulphide likewise
offer oil at temperatures (up to 350 °C) higher than fluid and oil-based ointments can work.
Constrained intrigue has been appeared in low erosion properties of compacted oxide coat
layers framed at a few hundred degrees Celsius in metallic sliding frameworks, in any case,
useful utilize is as yet numerous years away because of their physically temperamental
nature.

LUBRICATION

The process of reducing friction of introduction of lubricant between two sliding surface is
called ‘lubrication’. Whenever two surfaces are slides over each other friction (resistance to
flow) occurs between them. So, as to avoid such resistance we use lubricants.
 Market Study at BAPCO 17

GLOBAL SCENARIO

The worldwide greases showcase is anticipated to develop at a yearly rate of 2.5 per cent
somewhere in the range of 2014 and 2019 and be worth $162.3 billion by 2019, as per an on-
going report by Markets and Markets.

Asia-Pacific is the quickest developing lubricant market, with a yearly development rate of 3
percent somewhere in the range of 2014 and 2019. Asia-Pacific, the Middle East, and Africa
are the areas anticipated that would drive the lubricants materials markets. These markets
together represented about 51 per cent of the aggregate market in 2013.

The development of end-client businesses in key nations, for example, China, India, South
Africa, Brazil, and Iran is driving the development of the oils showcase. The Chinese market
is the biggest lubricant markets, involving in excess of 56 per cent of the aggregate Asia-
Pacific market in 2013. The Chinese market is evaluated to develop at a high rate throughout
the following five years because of expanding mechanical exercises in the nation. It surpasses
the top lubricants market— the United States — in the on-going past and is anticipated to
keep on dominating the lubricants market. The North American market has achieved a
develop organize and is required to enrol drowsy development.

The appropriation of bio-based oils to decrease hurtful natural impacts is the present pattern
in the greases showcase and is boosting the general development of the market. The need to
upgrade the fuel productivity of vehicles has prompted the supplanting of customary
materials with manufactured oils. This pattern additionally impacts the general market.

The developing automotive sector and modern generation have brought about the upgraded
interest for lubricants. As far as volume, the transportation portion represents the biggest
offer at about 57 per cent of the aggregate oils showcase. The transportation business is
progressively using manufactured and bio-based oils to supplant traditional greases. The
move is fundamentally ascribed to the higher execution qualities of engineered and bio-based
lubricants and stringent vehicle outflow directions.
 Market Study at BAPCO 18

INDIAN LUBRICANTS SCENARIO

Monetary, political, and administrative powers are reshaping the progression of lubricants
market activity all through the world, and chances to develop this business keep on emerging.
India, specifically, has developed as a key development showcase, and also a wellspring of
aggressively evaluated oils. Solid development in the Indian car, power and designing
segments is making new market open doors for ointments makers. In the car division,
purchasers are relocating to better quality vehicles and increment sought after for four-stroke
motorbikes, tie-ups with unique gear makers utilizing higher review greases; this is profiting
multi-review oil items with solid brand acknowledgment and wide dissemination. Whilst
there are no restrictions on foreign lubricant manufacturers from establishing 100%-owned
operations in India, many have chosen to partner with National companies. (Mergers &
Acquisition). The automotive lubricant market is assessed to have developed volumes by
more than 3% on the back of a solid monetary execution. The old age truck showcase and the
2-stroke cruiser lubes advertise, is anticipated to keep declining strongly for the time being.
The patterns featured above are relied upon to proceed with, in this way; lube utilization is
anticipated to develop firmly in autos and 4-stroke bicycles. With the quick development in
vehicle and framework division, the state of the client gatherings would experience critical
change later on. Armadas, development organizations and substantial workshop gatherings
would shape an expanding level of the market. Another pattern, which is quickly making up
for lost time, is the development of composed retail chains. While the effect on ointment
deals at this crossroads is negligible, these outlets could exhibit open doors for advertising in
country territories who are clients later on. It is likewise expected that the provincial
development of 4-stroke cruisers will keep on outstripping urban request soon. Infiltration in
country and semi-urban zones is to a great degree low and could give chances to advertisers.
New contestants should manage vulnerability of interest, unique and including client needs, a
generally poor provider base, a market swarmed with rivalry and specialty advertising
particularly in provincial regions.

As a major aspect of technique to centre around rustic markets, the organizations are
currently intending to build the offer of appropriation foundation to connect with an extra six
lakh towns., as of now the circulation came to somewhere in the range of 5000 and 7000
towns and towns the nation over, in the end the organizations are going for taking its items to
six lakh towns with a populace of under 5000.3 The advancing business sector powers in
India show noteworthy open doors in provincial territories to new and existing advertisers
and formulators of grease.

Oils are utilized to lessen grating between moving parts, in this manner bringing about lower
wear and tear. In numerous machines, oils likewise assume a part in cooling, rust aversion
and help to stay away from the statement of solids between firmly fitting parts. Fluid oils are
most normally utilized. An oil is a mix of base oils and execution improving added substance
as required by motor, gearbox and different applications territories Indian Automotive
Lubricant Industry the Indian car oil advertise is the 6th biggest on the planet with the market
esteem more than the US $ 1 Billion. It is additionally one of the quickest developing retail
advertises in India. Add up to the creation of car greases in India is around 8 to 10 per cent of
 Market Study at BAPCO 19

worldwide lube production5. The oil division in India is comprehensively partitioned into 3
noteworthy markets areas: Automotive, Industrial what's more, Marine and Energy
applications? Progression in the mid-1990 has acquired a colossal change in the Indian
Lubricants situation; the administration chose to open the Indian market to outside rivalry. No
Government Controls on Import of lube oil Base stocks, Additives, and completed ointments.
Evaluating of base oil was deregulated fundamental traditions obligation on base oil stock
was diminished from a pinnacle of 85 per cent to a level of 25 per cent. Every quantitative
limitation was likewise evacuated. Car greases are additionally isolated into diesel lubes and
petroleum Lubes. Diesel lubes involve 70 per cent of the market and petroleum-based oils
cover the rest. As diesel lubes are utilized by business vehicles, which need to cover more
prominent separation so their piece of the overall industry is higher. CNG Gas is in
developing stage
 Market Study at BAPCO 20

SUCCESS DETERMINANTS
 Market Study at BAPCO 21

KEY SUCCESS FACTORS FOR LUBRICANTS

Brand Name

A word, group of words, letters, or numbers that represent a product or service; also known
as a product brand. Name used to distinguish one product from its competitors. It can apply to
a single product, an entire product line, or even a company.

Brand Image

With lubricants becoming a fast moving consumer good and the brand preference of the
consumers witnessing a change, brand image plays a key role in affecting the consumer’s
decision to buy a lubricant. In a recent study by Frost & Sullivan, it was found that vehicles
owners’ decision to buy a certain lubricant is affected by a garage mechanic, retail
storeowner, or the advertisements. Hence, it becomes important to have a good brand name in
the market, which can affect the customer’s decision to buy a certain brand.

Proper and Longer Support- Distribution Channels

With increasing number of players in the market, it is vital for the companies to reach a wider
segment of customers. The lubricants market in India is very highly fragmented and complex.

Public limited companies selling primarily through petrol pumps manage to achieve a deeper
penetration. Most of the MNC’s have tied up with oil majors to market their brands like
Castrol with Escorts, Tata BP with Telco. This will help the private companies to establish a
wider access, brand awareness, as well as preference. Good or bad quality, high or low price.

Quality of parent brand

Any product in its start has a parent or the initial product and then further modification or up
gradation is seen in the upcoming new product. If the initial product or the parent had good
quality then this would in turn affect the success of the product in the market.

New Technology

Any up gradation done in the existing product would reflect its success or not. Introducing
new features to the existing lubricant whether in lube itself or packaging would affect its
market share.

Prices and Promotion

The transformation from the administered pricing mechanism to free pricing has increased
the importance of providing cost effective product to the users. Thus product costing and
competitive pricing are key factors affecting the market.

Above the line (ATL)

ATL is a type of advertising through media such as television, cinema, radio, print, web
banners and web search engines to promote brands. This type of communication is
 Market Study at BAPCO 22

conventional in nature and is considered impersonal to customers. It differs from BTL

advertising, which uses unconventional brand-building strategies, such as direct mail and
printed media (and usually involves no motion graphics). It is much more effective when the
target group is very large and difficult to define.

The term comes from top business managers and involves the way in which Procter &
Gamble, one of the world’s biggest advertising clients, was charged for its media in the 1950s
and 1960s.

Advertising agencies made so much commission from booking media for clients that the
creative generation and actual production costs of making TV ads was free – hence above the
line. Everything else they paid for and were therefore below the line.

Below the line promotion (BTL)

BTL sales promotion is an immediate or delayed incentive to purchase, expressed in cash or

in kind, and having short duration. It is efficient and cost-effective for targeting a limited and
specific group. It uses less conventional methods than the usual ATL channels of advertising,
typically focusing on direct means of communication, most commonly direct mail and e-mail,
often using highly targeted lists of names to maximize response rates. BTL services may
include those for which a fee is agreed upon and charged up front.

BTL is a common technique used for "touch and feel" products (consumer items where the
customer will rely on immediate information rather than previously researched items). BTL
techniques ensure recall of the brand while at the same time highlighting the features of the
product.

Another BTL technique involves sales personnel deployed at retail stores near targeted
products. This technique may be used to generate trials of newly launched products.

Private companies mostly sell their products through stockiest, dealers, distributors,
mechanics, and retail stores. Maximum sales are achieved through mechanics and retail
stores. Margins and discount schemes offered to the storeowners and mechanics prompt them
to sell and promote a particular brand.

Tie Up with OEMs

Among the PSU Oil Companies Indian Oil is one company who has all along given utmost
importance on tie ups with Original Equipment Manufacturers (OEMs) after signing
agreements with major OEMs like Maruti Udyog Ltd, TELCO, Bajaj Auto, Kinetic
Engineering, SKODA etc. Even initial fill & warranty fill agreements were also signed with
TELCO & Hindustan Motors. In fact, the Japanese vehicle manufacturers prefer to tie up
with one or two major oil manufacturers for use of engine oils as `Genuine Spare Part' of the
vehicle whereas the American vehicle manufacturers prefer to follow the American
Petroleum Institute who defines the performance parameters of engine oils. The Indian
vehicle manufacturers follow a route which is combination of both.
 Market Study at BAPCO 23

These inner strengths of PSUs and the quality policy adopted by them, even attracted major
multinational players like Shell, Mobil, Exxon & Caltex to enter into tie up with one or the
other PSU to have access to their well-established marketing network.

Environment Friendly

Now a day’s environment awareness is increasing a lot, therefore providing the lubes in
environment friendly packaging could be one factor for success. This is basically the factor
which relates to the packaging, whether providing the lubricant in environment friendly
packaging would affect its success or not.
 Market Study at BAPCO 24

STRATEGIES IN LUBRICANTS
BUSSINESS
 Market Study at BAPCO 25

LUBE BUSINESS STRATEGY

To compete with dominant public sector distribution, concepts like "Bazaars" and "Super
Stores" have also been developed. Castrol developed the concept of "Bazaars." These are
outlets meant only for lubricant sales.

The concept of "User Outlet" is another new concept developed by Castrol. In this, the
consumer selects his own brand of lube after giving his vehicle for service in the same outlet.
Convenient stores and highway stops for vehicles are being built from where the vehicle
owners can get their vehicles repaired and get their supply of lubricants.

In this front Indian Oil after emerging as India's largest commercial organization and being
the only company in the country to feature in the Fortune Global 500 listing has adopted
structured business plan approach to strike a balance between conventional marketing
channels (petrol stations)/distribution network and parallel marketing channels (bazaar trade).
The parallel marketing channels chosen by the Company also adopted the path of brand
image, customer focus & customer accountability.

Mergers and acquisitions is another way of increasing market share for any industry. British
Petroleum’s 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.

STRENGTH OF OIL COMPANY

Manufacturing of quality lubricants is guided by two important parameters i.e., resourcing of

consistent premium quality base oils and incorporation of cost & performance effective
additive technology which is privy to the oil company and is an effective tool to establish
superiority over competitors. In this area R & D effort plays a significant role as it has to be
end use specific, location specific, environment specific & at the same time cost effective.
Imported technology without any own & defined resource of quality inputs like base oil may
not be suitable for Indian road/market conditions. Today, technology has become so
demanding and requirement is so stringent that leading institutes like API (American
Petroleum Institute) gives performance approval on the basis of identification & sourcing of
base oils. Their approval is on crude specific, Refinery specific & base oil specific
considerations. Bringing in base oils taking leverage of decanalisation of imports & reduction
of duty, putting up blending plants at Tax holiday locations to remain in the cut throat
competition & dumping may or may not yield far reaching benefits. The need of the hour is
long term commitment and not sheer opportunism and with more competition expected in the
coming years, customers will also realize impact of such approach.

The automotive lubricant trade is gradually becoming wiser today. The traders now
understand the benefits of stocking fast moving & familiar brands instead of overcrowding
 Market Study at BAPCO 26

the shelf space because there are very few companies in India, who can make the entire range
of automotive products available. It has also been found by the trade that because of working
capital constraints the new entrants are increasing cash discounts resulting in price war and
reduction of dealer margins. For making all the products available at all times a company
would need to keep a high inventory commensurate with the sales volume for which an
additional working capital of at least 35% would be necessary.

OUTLOOK

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.
 Market Study at BAPCO 27

PRODUCT PORTFOLIO AND

SPECIFICATION
 Market Study at BAPCO 28

PRODUCT PORTFOLIO AND SPECIFICATION

SEGMENT

PRODUCT TYPE BRAND NAME SAE API

CHARGER 05W40 SN
FULL SYENTHETIC XTREEM

CHARGER ECO 05W30 SN

SEMI- SYENTHETIC CHARGER SUPER 10W40 SN

PLUS

MINERAL CHARGER SUPER 20W50 SL

PCMO

MINERAL - SUV SPECIAL 15W40 CI-4+

10W40
MCO

FULL SYENTHETIC TRITEC 4S SYN 10W30 SN/MB

SB 20W40

FRONTIER 15W40 CI-4+

DIESEL ENGINE OILS

TURBO+

MINERAL HDDEO FRONTIER 15W40 CF-4

SUPER

FRONTIER 20W40 CF-4

SUPER

MINERAL TRACTOR SPECIAL FRONTIER 20W40 CD

GEAR & TRANSMISSION

SPAREX HP 90 GL-4

MINERAL GEAR OILS SPAREX HP 80W90 GL-4

SPAREX EP 85W140 GL-5

SYNTHETIC AUTOTRAC III H ATF

OILS
GREASES

MULTI PURPOSE LONG LIFE TASHIM MP 3 NLGI-3 NLGI-3

GREASE
- ANTS
COOL

SUPERCOOL30 - - -
SUPERCOOL50
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