What is a Lube?

1
What is a Lube?
2
Lubes Composition

• Base Oils 88 60 500 N
• 30 150 N
• 10 150 BS
• Additives 12

3
What is critical?
4
Lube Refinery Operation
75 SM
75 SS/ SPINDLE
VACUUM TOWER
150 N
150 SS
R C O
DEWAXING UNIT
500 SS
500 N
NMP EXTRACTION
HYDROFINER
1300 SS
1300 N
BRIGHT STOCK
150 BS
PROPANE EASPHAL-TING
RPO (AROMATIC EXTRACTS)
WAX
BITUMEN
5
RPO

• HVI SP / 150 N FCCU
• 500 N RPO / CBFS Pricing
• 150 BS RPO Heavy
• Diana

6
Base Oil Prices

• Factors affecting base oil prices on which
• India has insignificant control
• Demand supply gap (world)
• International crude oil prices

IMPORT PARITY PRICING BASIS ICIS LOR SINGAPORE
7
Base Oil Prices (RTPs)

• ICIS avergae mid quotes for last two weeks
• Freight
• 2.5 Insurance, losses, handling, etc.
• 10 custom duty

8
Lube Blending Plants
9
Domestic Pricing

• Raw Materials Formulations Costs (RD), Base
  Oils, Additives

10
Domestic Pricing

• Package Cost Bulk, Barrel, Smalls MRP

11
Domestic Pricing

• Logistics Bulk tanker size / storage at
  customers premises, Transportation Contracts,
  Blending Plant acting as Warehouse, Cenvat
  Issues, Inventories, Storage, Losses, etc.

12
Domestic Pricing

• Blending plants

13
Domestic Pricing

• Marketing Manpower, TS / RD for Customisation,
  Secondary Sales CFA / Distributor Channels,
  Customer Education / Campaigns / Promotion / Ads,
  Genuine Oil Costs, etc.

14
Domestic Pricing

• Duties / Taxes Cenvat, Special Pricing, Non
  cenvatable Customers lower list prices, CST
  Sales, Concessional Sales, deemed Export Sales,
  SEZ, etc.

Landed Cost
15
Strengths

• Integrated Oil Marketing Company
• Largest Refinery in the most economic zone
• Bright Stock
• Plan for Group II
• Power Brands Enklos, Hytherms, Rustops
• Rubber Processing Oils Low PAH Oils
• Vast supply network with huge inventories
• Halo affect due to huge total sales

16
Strengths

• Integrated Oil Marketing Company
• Largest Refinery in the most economic zone
• Bright Stock
• Plan for Group II
• Power Brands Enklos, Hytherms, Rustops
• Rubber Processing Oils Low PAH Oils
• Vast supply network with huge inventories
• Halo affect due to huge total sales

17
Consumer Market

• Major Sectors (Railways, STUs, Coal, Tata, Army,
  Jindal, Sterlite, Tyre, Major Steel Plants, etc.)
  
• 235 TMTPA
• Major Auto (including Tractor) Construction
  Equipment Manufacturing Industries
• 55 TMTPA
• Cement, Sugar, Textile, Steel Re-rolling Mills,
  Power Plants, Food Processing, Ports, etc.
• 75 TMTPA
• SME Segment
• 150 TMTPA

18
Passenger Cars
Maruti Suzuki, Hyundai, Tata Motors, General
Motors, Ford, Honda, Toyota, Fiat, Mahindra
Renault, Skoda, Volkswagen, Nissan, Hindustan
Motors, Daimler Chrysler, etc.
19
Motorcycles
Bajaj Auto, Hero Honda, TVS, Yamaha Motors,
Honda, Suzuki Motor, etc.
20
Scooters
Bajaj Auto, Honda, Kinetic, Hero Honda, Suzuki
Motor, etc.
21
Three Wheelers
Bajaj Auto, Mahindra Mahindra, Piaggio, TVS,
Force Motors, Atul Auto, etc.
22
Jeeps
Tata Motors, Mahindra Mahindra, Toyota, Ford,
General Motors, International Cars Motors, etc.

23
Tractors
Mahindra Mahindra including Punjab Tractors,
Tractors and Farm Equipment Ltd. (TAFE) including
Eicher, International Tractors, John Deere, New
Holland, Escorts, HMT Tractors, Indo Farm, Force
Motors, Preet Tractors, VST Tillers, etc.
24
Commercial Vehicles
Tata Motors, Ashok Leyland, Volvo, Swaraj Mazda,
Mahindra Mahindra, Force Motors, Eicher, etc.
25
OEMs to Support Infrastructure
Caterpillar, J C Bamford Excavators (JCB), BEML
Ltd. (formerly Bharat Earth Movers Ltd.), LT
Komatsu, TELCO Construction Equipment Company
(TELCON), Action Construction Equipment (ACE),
Escorts Construction Equipment Ltd. (ECEL), etc.
26
Spare Parts except Tyre
Gabriel, Endurance, Munjal Showa, Bharat Forge,
ZF India, Sona Koyo, Rane Power, etc.
27
Tyre
MRF, Apollo, Ceat, Birla Tyres, Goodyear, JK
Industries, Bridgestone, etc.
28
Consumer Sales

• Customization, alternate product
• Special prices
• Exports
• Special grades - NM
• Silvassa / CST
• Bonded storages
• Understanding
• Cross subsidization basket, IC / Lubes

29
Consumer Sales

• Bulk / packed
• Tankage
• Genuine oils
• Non moving inventory
• Commercials

30
Thank you all