1. Lubricants & Base Oil Opportunity in India in 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 galore 2009-10 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 galore 2009-10 - 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 galore 2009-10 - 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 2009-10 vs 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 2009-10 vs 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 galore 2009-10 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 galore based on 2009-10 data Thank you Hussam Adeni Lube.specialist@gmail.com