Lubes

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Lubes
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FUEL REFINERY PROCESS
LPG
LAN
HAN
SKO
LVGO
CRUDE OIL
HVGO
REDUCED CRUDE OIL TO LUBE REFINERY
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LUBE REFINING
75 SM
75 SS/ SPINDLE
150 N
150 SS
R C O
DEWAXING UNIT
500 SS
500 N
NMP EXTRACTION
VACUUM TOWER
HYDROFINER
1300 SS
1300 N
BRIGHT STOCK
150 BS
PROPANE D EASPHAL-TING
RPO (AROMATIC EXTRACTS)
WAX
BITUMEN
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BASE OIL TERMINOLOGY

• LUBES ARE HIGH VALUE PRODUCTS WITH BROAD VARIETY
  OF USES
• Automotive Engine oils, Automatic
  Transmission Fluids (ATF)
• Industrial Turbine oils, Hydraulic oils,
  Industrial Gear oils, Compressor oils,
• Refrigeration oils,
  Machine oils, Electrical oils, Drilling Fluids
  etc
• Medicinal Food Grade oils, White oils,..
• REFINERIES PRODUCE BASE OILS OR BASE STOCKS
• Finished Products are Blends of Base stock
  with(out) Additives
• BASE STOCKS ARE CALLED BY VARIOUS NAMES
• Neutrals (100N, 150N, 600N,...) Bright Stocks
• Grades (SAE 5, 10, 30, .. ISO 22, 32,...)
• MOST COMMON LUBE NAME IS NEUTRAL
• Number is the Viscosity _at_ 40 or 100oC
• BRIGHT STOCK IS HEAVY LUBE PRODUCED FROM
  RESIDUE
• Name Refers to Appearance and Typical
  Viscosity is 2,500 SSU _at_ 100oF

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BASESTOCK PROPERTIES AND DEFINITIONS

• BASE STOCK COMPOSITION DETERMINES PERFORMANCE OF
  FINISHED PRODUCTS
• Viscosity Index or VI
• Higher VI improves Volatility, Fuel Economy, and
  Operating Range
• Saturate Content
• Higher Saturates improves Oxidation Stability and
  Soot Handling
• Wax Content
• Lower Wax Improves Operating Range
• Lower Wax improves Low Temperature Performance
• Pour Point
• Cloud Point
• AMERICAN PETROLEUM INSTITUTE (API) BASESTOCK
  CATEGORIES
• API Group Sats Sulfur VI TYPICAL
  MFG PROCESS
• I lt90 gt0.03 80-119 Solvent Processing
• II gt90 lt0.03 80-119 HYDROPROCESSING
• III gt90 lt0.03 120 WAX ISOME, H/C, GTL
• IV N.A. N.A POLYALPHAOLEFINS (PAO)
• V ALL OTHER BASE STOCKS

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KEY LUBE OIL PROPERTIES

• VISCOSITY (MEASURE OF FLUIDITY)
• Range from 4 to 20 cSt _at_ 100oC for Neutrals up
  to 32 cSt for Bright Stock
• Brookfield Measures Low Temperature Fluidity on
  Finished Oils _at_ -40oC
• VISCOSITY INDEX (INVERSE MEASURE OF CHANGE OF
  VISCOSITY WITH
• TEMPERATURE)
• Ranges from 85 to 105 for most Base stocks,
  Higher for Speciality Grades
• (ex Exxsyn 140, PAO 150, XHVI140, Ultra S
  125)
• POUR POINT (TEMPERATURE AT WHICH FLUID BECOMES
  NEARLY SOLID)
• Typically from -9 to -24oC
• Cloud Point is Temperature at Which Wax Crystals
  Appear
• VOLATILITY (MEASURE OF OIL LOSS DUE TO
  EVAPORATION)
• Noack Volatility Measures Actual Evaporation
  (Typically 20-35 wt)
• GCD Volatility Measures Front End of Boiling
  Curve (e.g 10 _at_375oC)
• COLOR (APPEARANCE) AND STABILITY (MEASURE OF
  COLOR CHANGE IN LIGHT)

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CLASSIFICATION OF LUBRICANTS

• GENERAL CATEGORIES
• SPECIFIC APPLICATIONS
• PHYSICAL SPECIFICATIONS
• STANDARD SPECIFICATIONS
• PERFORMANCE REQUIREMENTS
• USERs SPECIFICATIONS
• TYPE OF BASE OIL

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INDIAN LUBE REFINING CAPACITY

• TMTPA
• HPCL, Mumbai - 330
• IOC,Haldia - 200
• CPCL, Chennai - 240
• BPC, Mumbai - 180
• TOTAL - 950

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LUBE MANUFACTURING
Additives
CUSTOMERS

Function
Lubricants
Lube Refinery
Blending Plants
Base Oils
Viscosity Index Pour Point Flash Point
Improved Improved No change
Key Properties
Oxidation Stability
Special Properties
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BLENDING CAPACITIES
BLENDING PLANT CAPACITY (TMTPA)
MAZAGAON 180
SILVASSA 60
B BUDGE / RAMANAGAR 30
CHENNAI 30
SEWREE 10
TOTAL 310
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GENERAL CATEGORIES
AUTOMOTIVE LUBRICANTS INDUSTRIAL LUBRICANTS INDUSTRIAL LUBRICANTS GREASES SPECIALTIES
ENGINE OILS TRANSMISSION OILS TURBINE OILS HYDRAULIC OILS COMPRESSOR OILS REFRIGERATION OILS SPINDLE OILS CYLINDER OILS GEAR OILS TEXTILE OILS etc WHEEL BEARING CHASSIS INDUSTRIAL WHEEL BEARING CHASSIS INDUSTRIAL CUTTING FLUIDS METAL ROLLING OILS RUBBER PROCESS OILS RUST PREVENTIVES HEAT TRANFER FLUIDS METAL DRAWING COMPOUNDS QUENCHING OILS etc
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FUNCTIONS OF ENGINE OILS

• PERMIT EASIER STARTING
• LUBRICATE AND PREVENT WEAR
• REDUCE FRICTION
• PROTECT AGAINST RUST AND CORROSION
• KEEP ENGINE INTERIORS CLEAN
• COOL ENGINE PARTS
• SEAL COMBUSTION PRODUCTS
• BE NON-FOAMING
• AID FUEL ECONOMY

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GREASES COMPOSITION

• BASE OIL THICKENER ADDITIVES
• MINERAL SOAP
  ANTI-OXIDANT
• SYNTHETIC NON-SOAP
  ANTI-CORROSION
• VEGETABLE
  EP/ANTI-WEAR
• TACKINESS AGENT SOLID
  FILLER

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WHY USE A GREASE?

• A GREASE OFFERS UNIQUE CHARACTERISTICS WHICH
  MAKES IT PARTICULARLY USEFUL IN MACHINE ELEMENTS
• STAY WHERE IT IS PUT
• ALLOWS UNATTENDED SERVICE FOR LONG PERIODS
• 
  (SEALED FOR LIFE)
• REQUIRES LESS FREQUENT APPLICATION FOR AREAS OF
  POOR ACCESSIBILITY
• SEALS OUT CONTAMINANTS
• OPERATE OVER A WIDE TEMPERATURE RANGE
• SOLID ADDITIVES CAN BE USED WITHOUT CONCERN
• OF SETTLING OUT
• LOW LEAKAGE MEANS THEY ARE EFFECTIVE IN WARM
  EQUIPMENT

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NLGI CLASSIFICATION OF GREASESNATIONAL
LUBRICRATING GREASE INSTITUTE

• NLGI NO. ASTM PENETRATION
• _at_ 25OC
• 1
  310-340
• 2
  265-295
• 3
  220-250
• 4
  175-205
• 5
  130-260
• 6
  85-115
• After working 60 strokes.

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MAJOR INDUSTRIAL GRADES

• ENKLOS
• TURBINOLS
• PARTHANS
• SEETUL
• SPINTEK
• KOOLKUTS
• RUSTOPS
• HYTHERMS
• ELASTOS
• METAQUENCH

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MARKET SHARE (PSUs)(2005-06)

• MARKET LEADER IN GROWTH 35.1 AGAINST INDUSTRY
  GROWTH OF 12.7

CO. CURR (TMT) HIST (TMT) VAR MARKT SHARE (CURR) MARKT SHARE (HIST)
HPC 291.8 216.0 35.1 33.3 27.7
BPC 113.7 115.4 (1.5) 12.9 14.8
IOC 454.2 421.0 7.9 51.8 54.1
IND 877.6 778.8 12.7 100.00 100.00
HPC Figures exclude base oil sales to BPC / IOC
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SECTORIAL CONTRIBUTION
LUBES MARKET 1250 TMTPA
Growing
INDUSTRIAL 450 TMT
AUTOMOTIVE 800 TMT
RET OUTLET 170 TMT
BAZAAR 580 TMT
DIRECT 500 TMT
2S 2/3W 150 TMT
GEAR OIL 100 TMT
CAR 30 TMT
D E OILS 350 TMT
4S 2W 45 TMT
OTHERS 75 TMT
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CORE SECTORS

• Sector Percentage
• Auto OEM - 7
• Cement - 3
• Power - 4
• STU - 8
• Rubber -9
• Colliery -4
• Defence - 4
• Railways -10
• Metals - 10
• Others -41

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LUBE MARKET MARKETING CHANNELS

• RETAIL OUTLETS
• AUTOMOTIVE OILS AND GREASES
• RESELLERS/JOBBERS
• AUTOMOTIVE OILS AND GREASES
• CF AGENTS
• FOR SMALL AND MEDIUM INDUSTRIES
• LUBE DISTRIBUTORS
• FOR BAZAAR TRADE
• DIRECT SALES TO CONSUMERS

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DEVELOPMENT OF NEW CHANNEL BAZAAR LUBE
DISTRIBUTORS

• BAZAAR 40 VOLUMES CASTROL AND OTHER PLAYERS
• PSUs TOO STARTED DEVP.
• BAZAAR REMAINED UNCATERED
• NEED FOR EXCLUSIVE LUBE DISTRIBUTOR CHANNEL
• SHIFT IN BUYING HABITS OF CUSTOMERS NEW
  GENERATION VEHICLES MECHANICS ACTING AS
  INFLUENCERS
• CHANNEL PICKED UP 25,000 KL WITHIN THREE YEARS

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LUBE DISTRIBUTOR

• EXCLUSIVELY CATERING TO LUBE SHOPS, GARAGES,
  AUTHO. SERVICE CENTRES
• INFRASTRUCTURE DELIVERY VEHICLE, STAFF,
  SHOWROOM / OFFICE AND GODOWN
• COMPUTER
• FMCG TYPE OF MARKETING POPs, INVENTORIES, ORDER
  TAKING, SUPPLIES AND CREDIT / COLLECTIONS

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DIRECT SALES - LUBES

• OEMs, CORE SECTOR ( STEEL. COAL, POWER, CEMENT,
  SUGAR ETC.,), RAILWAYS, DEFENCE ETC.,
• MOSTLY TENDER BASED EXCEPT LOCALISED SMALL
  REQUIREMENTS
• SALES SUPPORTED BY TECHNICAL SERVICES CES, PES,
  CONDITION MONITORING, TRAILS, ENERGY AUDITS ETC.,
• PRICE HEDGING SUPPORT TO CUSTOMER THROUGH FIXED
  PRICE INVENORY MANAGEMENT COST SAVINGS

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LUBE NETWORK RETAIL AND DIRECT

• RETAIL OUTLETS 5,000 PLUS DIRECTLY CATERING
  TO END USER / CUSTOMERS AND MECHANICS
• LUBE DISTRIBUTORS 150 PLUS HAVING A BASE OF
  80-100 BAZAAR SHOPS PER DTOR WHO IN TURN SERVICE
  THE END USERS / MECHANICS
• LUBE CFAs, COLD, COD AND LUBE AND OTHER DEPOTS

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RETAIL LUBES MARKETING

• Packaging
• Lube Incentive Schemes
• Advertising and Product Promotion Campaigns
• Launching of new Brands
• Genuine oil tie-ups
• Network Development
• Micro Marketing
• Mechanic Contact Program

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ENVIRONMENT

• Long-term growth estimated at 3-4 p.a.
• More than 25 players of repute in the Market
• Over 500 small local blenders