Lubricants & Base Oil Opportunity in India in 2010-11

1. Lubricants& Base OilOpportunity in Indiain 2010-11 Hussam Adeni Lubricant Specialist ExBPCastrol India Lube.specialist@gmail.com

2. The Components - for the India Market • India – An opportunities galore • Vehicles in India • Production • Population • Fuel consumption • Geographical size • Lube market • Hussam Adeni – Lube specialist Hussam Adeni Lube.specialist@gmail.com

3. India – Opportunities galore2009-10 • Third largest market in the world • Second largest market in AsPac • Ranks after US and China • India market 1,800 - 1,900 million litres • Lube market worth INR 300,000 million (2009-10 prices) Hussam Adeni Lube.specialist@gmail.com

4. India – Opportunities galore2009-10 - Economy • Area 3.28 sq km • Population 1.166 million • Population density 354.7/ sq km • Vehicle population 102.5 million • Two wheelers 74.0 million • Cars 14.0 million • Trucks, Buses & Others 12.5 million Hussam Adeni Lube.specialist@gmail.com

5. India – Opportunities galore2009-10 - Petrochemicals • Fuel consumption 61.95 million Lt • Diesel (HSD) 50.91 million Lt • Gasoline (Petrol) 11.04 million Lt • Additive manufacturing 55 million Kg • Lube consumption 1850 million Lt • Base Oils imported 900 million Lt/Yr • Base Oil manufacturing Capacity • Group I Base Oils 805 million Lt/yr • Group II Base Oils 460 million Lt/Yr Hussam Adeni Lube.specialist@gmail.com

6. Vehicle population 2009-10 • Total vehicle population 102.5 million • Two wheeler contribute about three fourths of the vehicle population • Approx. 74% vehicles are 2 wheelers • Used for multiple purpose • Personal and Public passenger transport • Personal & Public goods transport Hussam Adeni Lube.specialist@gmail.com

7. Vehicle population – 2009-10 • Total vehicle population 102.5 million • Approx. 74% vehicles are 2 wheeler • Passenger cars account for 14% • Buses and Trucks account for 12% • Includes all diesel & off-the-road vehicles like tractors and other agriculture vehicles etc.. Hussam Adeni Lube.specialist@gmail.com

8. Vehicle population 2009-10 • 74% vehicles - 2 wheeler • 14% vehicles – Passenger cars • 12% vehicles – Bus,Trucks & others Total vehicle population 102.5 million Hussam Adeni Lube.specialist@gmail.com

9. Vehicle population 2009-10 • 74% = 76 million - 2 wheeler • 24% = 14 million - Passenger cars • 12% = 12.5 million - Buses, Trucks & Others Total vehicle population 102.5 million Hussam Adeni Lube.specialist@gmail.com

10. Vehicle population 2009-10vs Lube consumption - Transport • 76 million - 2 wheelers • Approx. 532 million Lt of lubes • 14 million - Passenger cars • Approx. 112 million Lt of Lubes • 12.5 million - Buses, Trucks & Others • Approx. 437 million Lt of Lubes Total vehicle population 102.5 million Approx. 1081 million Lt by Transport sector Hussam Adeni Lube.specialist@gmail.com

11. Vehicle population 2009-10vs Lube consumption - Transport Summary Two wheelers - 76 million 532 million Lt of lubes Gasoline Passenger cars – 14 million 112 million Lt of Lubes Diesel vehicles – 12.5 million 437 million Lt of Lubes Approx. 1081 million Lt by Transport sector Hussam Adeni Lube.specialist@gmail.com

12. Industrial sector Lube consumption 2009-10 Industrial sector Lube consumption Estimated at 40:60 ratio in a fast growing Industrial Economy like India Industrial Lube consumption 721 million Lt Hussam Adeni Lube.specialist@gmail.com

13. Total Lube consumption 2009-10 Transportation sector Lube consumption 1081 million Lt Industrial sector Lube consumption 721 million Lt Total = Transport + Industrial sector 1802 million Lt Hussam Adeni Lube.specialist@gmail.com

14. Motor Fuel demand in India • Major Fuels • Gasoline or Motor spirit ( called Petrol) • Diesel – HSD ( High Speed Diesel) • LPG – Gas vehicles • CNG - Gas vehicles • Demand for Gas likely to pick up Hussam Adeni Lube.specialist@gmail.com

15. Motor Fuel demand in India • Major Fuels • Gasoline or Motor spirit ( called Petrol) • Consumption – 11.04 million tons Source: Ministry of Petroleum report on consumption - Apr-Dec 10= 8.28 million Tons Annualized = 11.04 Million Tons Hussam Adeni Lube.specialist@gmail.com

16. Motor Fuel demand in India • Major Fuels • Diesel – High Speed Diesel • Consumption – 50.91 million tons • An estimated 2% probably used to “adulterate” gasoline Source: Ministry of Petroleum report on consumption - Apr-Dec 10= 38.18 million Tons Annualized = 50.91 Million Tons Hussam Adeni Lube.specialist@gmail.com

17. Motor Fuel demand in India • Major Fuels • LPG – Liquified Petroleum Gas • Allocated for domestic use in cooking and carries subsidies • CNG – Compressed Natural Gas • Retailed at Gujarat and Delhi • Demand picking up due to lower costs. • Consumption data negligible but mixed up with non transport use Hussam Adeni Lube.specialist@gmail.com

18. Environmental issue - Motor fuels • Diesel – Sulphur content • Till Jan 2000 – 2500 ppm Nationwide • Urban centres – 500 ppm • By 2005 - 500 ppm Nationwide • By 2010 - 250 ppm Nationwide • Apr 2010 - 50 ppm 11 Cities Hussam Adeni Lube.specialist@gmail.com

19. Environmental issue - Motor fuels • Gasoline – Sulphur content • Till Jan 2000 – 1000 ppm Nationwide • Urban centres – 500 ppm • By 2005 - 500 ppm Nationwide • By 2010 - 150 ppm Nationwide • Apr 2010 - 50 ppm 11 Cities Hussam Adeni Lube.specialist@gmail.com

20. Additive manufacturing • Capacity 55 million kg/yrs • Lubrizol • 50% JV – IOC & Lubrizol USA • 45 million Kg/Yr • - Mumbai • Indian Additives • 50% JV IOC & Chevron Ornite • 15 million Kg/Yr • - Chennai Hussam Adeni Lube.specialist@gmail.com

21. India – Opportunities galore2009-10 • Third largest market in the world • Second largest market in Asia Pacific • Ranks after US and China • India market 1,850 to 1,900 million litres • Lube market worth INR 300,000 million (US$ 6,250 Million - US$ @48 INR) Hussam Adeni Lube.specialist@gmail.com

22. India – An opportunities galorebased on 2009-10 data Thank you Hussam Adeni Lube.specialist@gmail.com