India, the third largest grease consumer, is expected to witness slow but steady growth in its grease demand in the future, despite facing challenges, such as the growing use of greases filled-for-life and elongating service intervals. The expanding manufacturing sector in India offers opportunities to promote grease consumption; however, the growth potential varies with grease type as each type has distinct advantages and disadvantages.
As India continues to expand its manufacturing sector, many new factories and plants are being set up with the latest technology equipment from international original equipment manufacturers (OEMs). As a result, demand for high quality grease is expected to grow. Overall, the Indian grease market is expected to grow at a compound annual growth rate of 1.3% through 2023, finds the recently published India Grease Market: Market Analysis and Opportunities report.
Greases are solid or semi-fluid lubricating products that are made by combining appropriate thickening agents with baseoil. These are thickened oil rather than a thick oil. Due to their different application and manufacturing process from fluid lubricants, grease can be considered as a specialty product.
The industrial segment is the largest consumer of greases in India with a share of 40-50% in total grease consumption in 2018. The major grease-consuming industries are automotive manufacturing and general engineering, metals, mining, power generation, food processing, textiles, chemicals, and cement.
The grease market in India is served by a variety of suppliers. Major global oil companies, such as Shell, BP, and ExxonMobil, benefit from their international image. Public sector units (PSUs), including Bharat Petroleum Corporation Limited, Hindustan Petroleum Corporation Limited, and Indian Oil Corporation Limited (IOCL), and Balmer Lawrie, enjoy a good brand image and have extensive distribution networks. The market is also served by small and medium-sized lubricant suppliers, specialty grease suppliers, OEMs, and private-label blenders.
Some major oil companies prefer to outsource grease production. This is because grease forms a very small component of their overall product portfolio and cannot be produced in blending plants that are used to produce liquid lubricants. Besides, companies focused on this business need to invest significant resources to stay in the lead.
The challenge faced by small, independent grease manufacturers is the dominance of multinational lubricant suppliers and brands of PSUs. Some private-label manufacturers of grease produce for major lubricant suppliers in the industry because they find it challenging to compete in this market with industry leaders.
India Grease Market: Market Analysis and Opportunities covers three grease-consuming market segments in India: consumer automotive grease, commercial automotive grease, and industrial grease. There are also eight industries briefly covered in the report: automotive manufacturing and general engineering, metals, mining, power generation, food processing, textile, chemicals, and cement. Market size estimates are provided for 2018. This also study presents an assessment of how the market will evolve over the next five years.
