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What is a Lube?

What is a Lube?. Lubes Composition. Base Oils 88% 60% 500 N 30% 150 N 10% 150 BS Additives 12%. What is critical?. Lube Refinery Operation. 75 SM. 75 SS/ SPINDLE. VACUUM TOWER. 150 N. R C O. 150 SS. DEWAXING UNIT. 500 SS. 500 N. NMP EXTRACTION. HYDROFINER.

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What is a Lube?

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  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 R C O 150 SS 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 (R&D), Base Oils, Additives

  10. Domestic Pricing • Package Cost – Bulk, Barrel, Smalls – MRP

  11. Domestic Pricing • Logistics – Bulk – tanker size / storage at customer’s 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 / R&D 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.), L&T 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, I&C / Lubes

  29. Consumer Sales • Bulk / packed • Tankage • Genuine oils • Non moving inventory • Commercials

  30. Thank you all

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