Lubricants: Producers Get Positioned For Value Based Demand

Lubricants Producers

With expectations towards revival of construction and mining sector, lubricant producers in India foresee fresh lease of demand that will be both volume and value based. P.P. Basistha takes a stock of the newer business initiatives of the lubricant producers to address the emerging requirements.

Ongoing advancements in engines and fed parts have been ensuring extended uptime of the plant and machinery. This has been compressing drain out intervals of lubricants. With rental rates remaining under pressure while repayment interest rates going up, plant and machinery owners have left no stones unturned to see their valued assets perform extensively throughout the project cycle. The consequence has been of volume demand of lubricants in India at par with global markets has remained restricted whereas demand for value based products is on the rise.

According to lubricant producers' estimates in India, catering to construction and mining equipment applications, volume demand of lubricants in India has remained at modest levels. The reason for the curtailed demand has been advancements in machinery, coupled with restricted acquisition of newer plant and machineries owing to retrograded demand from construction and mining sector. On the contrary, demand has tended to be characterized by more value orientation of the products, making the sector challenging and competitive for producers to ensure brand recall.

To cater to the growing requirements of value added products, Valvoline Cummins has been expanding its products bouquet. "With equipment sizes becoming bigger and powerful at Indian job sites, powered by efficient engines, there is an ever growing demand of superior quality products. We have introduced, synthetic engine oils with drain intervals of above 1000 hours. In certain cases, we have been supplying hydraulic oils to OEM's manufacturing hydraulic tippers with oil drain intervals of 3000 hours for increased uptime of the equipment. Targeting the very demanding hydraulic applications, Valvoline has also launched 'Extra High Viscosity Index' EHVI hydraulic oils for end users of such equipment.

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