PETRONAS Lubricants International, the global lubricants manufacturing and marketing arm of the national oil corporation of Malaysia, PETRONAS, has launched a $50 million (Rs 335 crore) state-of-the-art lubricant blending plant at Patalganga on the city's outskirts, in the Indian state of Maharashtra, about 75 km from Mumbai.

The new facility, situated on 25 acres of industrial land at Patalganga Maharashtra Industrial Development Corporation, with an estimated production output of 110 million litres of lubricants, is expected to commence operations by end 2017.

“PLI has very aggressive ambitions to be amongst the world’s top lubricants player by 2019. India is without exception a very important market for us here in the Asia region and we are confident of the potential ahead of us. Therefore, we have embarked on a solid growth plan to accelerate our business here in India, starting with investments into the new plant that is equipped with world class lubricants blending facilities and equipment, highly automated production line, and increased storage tanks. We have also embarked on a new route-to-market approach that will see us transform the way we do business with our distributors and retailers” said Giuseppe Pedretti, PLI Regional Head of Asia.

Since its inception in 2006, PLIPL has recorded steady volume growths at 40% CAGR and is aiming to capture 5% total market share by 2019. “In India, the growing economy and emerging middle class will continue to contribute to a robust automotive market growth," said M P Singh, PLIPL CEO.

According to information OEM/Lube News obtained from George Morvey, Industry Manager, Energy Practice, Kline & Company consultancy, Kline estimates India to be a 2.3 million tonne market in 2014, growing at a CAGR of 2.5% per year to 2019. It is the third largest country market globally after USA and China, accounting for 6% of global and 13% of Asia-Pacific demand in 2014. Consumer automotive accounts for 13%, commercial automotive 33%, and industrial 54%. Overall supplier market share for the top 5 suppliers are: Indian Oil (IOCL) 18%, Hindustan Petroleum (HPCL) 14%, Bharat Petroleum (BPCL) 9%, BP 8%, and Apar Industries Ltd 7%.