Lubricants Opportunity in India Hussam Adeni Lubricant Specialist ExBPCastrol India

The Components - for the India Market India – An opportunities galore Vehicle in India Production Population Fuel consumption Geographical size Lube market Hussam Adeni – Lube specialist Hussam Adeni

India – Opportunities galore Sixth largest market in the world Third largest market in Asia Pacific Ranks after China and Japan India market 1,200 million litres Lube market worth INR 120,000 million Hussam Adeni

Vehicle production Vehicle production 5.3 million in 2002 Annual growth in vehicles 12% Hussam Adeni

Vehicle population Total vehicle population 65 million 2/3 wheeler contribute three fourths of the vehicle population Approx. 76% vehicles are 2 wheeler or 3 wheeler Used for multiple purpose Personal and Public passenger transport Personal & Public goods transport Hussam Adeni

Vehicle population Total vehicle population 65 million Approx. 76% vehicles are 2 wheeler or 3 wheeler Passenger cars account for 10% Buses and Trucks account for 5% Hussam Adeni

Vehicle population 76% vehicles - 2 wheeler or 3 wheeler 10% vehicles – Passenger cars 9% vehicles – Other 5% vehicles – Buses and Trucks Total vehicle population 65 million Hussam Adeni

Vehicle population 49 million - 2 wheeler or 3 wheeler 6.6 million - Passenger cars 6 million - Others 3.3 million – Buses and Trucks Total vehicle population 65 million Hussam Adeni

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

Motor Fuel demand in India Major Fuels Gasoline or Motor spirit ( called Petrol) Consumption – 7.5 million tons Recent annual growth – 8% Hussam Adeni

Motor Fuel demand in India Major Fuels Diesel – High Speed Diesel Consumption – 36.7 million tons Recent annual growth – 0.7% An estimated 2% probably used to adulterate gasoline Hussam Adeni

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

Environmental issue - Motor fuels Diesel – Sulphur content Till Jan 2000 – 2500 ppm Nationwide Urban centres – 500 ppm By ppm Nationwide By ppm Nationwide Hussam Adeni

Environmental issue - Motor fuels Gasoline – Sulphur content Till Jan 2000 – 1000 ppm Nationwide Urban centres – 500 ppm By ppm Nationwide By ppm Nationwide Hussam Adeni

India – Lube Market Opportunities galore Sixth largest market in the world Third largest market in Asia Pacific Ranks after China and Japan India market 1,200 million litres Lube market worth INR 120,000 million Hussam Adeni

Lube consumption - Major sectors India Lube market 1,200 m* Transport Sector - 60% Non Transport sector - 40% * Lube market : million litres Hussam Adeni

Lube consumption - Major sectors India Lube market 1,200 m* Transport Sector - 60% Diesel Lubes is 70% Petrol Lubes is 30% Non Transport sector - 40% Industrial Maintenance, Process, Manufacturing * Lube market : million litres Hussam Adeni

Lube consumption - Transport sectors India Lube market 1,200 m* Transport Sector - 60% 670 million Lt Passenger cars – 85 million Lt 2 & 3 wheelers – 100 million Lt Trucks & buses – 300 million Lt Agriculture/Tractor – 40 million Lt Railroad Oils - 45 million Lt Marine eng/DG Sets – 40 million Lt Auto transmsn fluids – 50 million Lt Others - 10 million Lt Hussam Adeni

Lube consumption - Non Transport sectors India Lube market 1,200 m* Non Transport Sector - 40% Approx 530 million Lt Industrial oils – 425 million Lt Greases - 55 million Lt Others - 50 million Lt Hussam Adeni

Lubricant - Market shares in % Indian Oil 30% Hindustan Petroleum 22% BPCastrol 21% Bharat Petroleum 10% Others 17% Hussam Adeni

Lubricant - Market shares volume Indian Oil 365 million Lt Hindustan Petroleum 264 million Lt BPCastrol 252 million Lt Bharat Petroleum 120 million Lt Others 199 million Lt Hussam Adeni

Lubricant - Annual Blending capacities Indian Oil 430 million Lt Hindustan Petroleum 350 million Lt BPCastrol 300 million Lt Bharat Petroleum 125 million Lt Others 395 million Lt Total capacity: 1600 million Lt/Year Hussam Adeni

Base oil manufacturing Group I - Capacity 900 million Lt/Yr - More than 700 million Lt/Yr imported Group II* - Nil Group III - Nil * BPCL Mumbai: 150 m/Lt Yr Hydro-cracking unit under exceution. Likely to be on stream by 1 st Qtr 2006 Hussam Adeni

Base oil manufacturing Group I - Capacity 900 million Lt/Yr Hind Petroleum – 330 million Lt Mumbai Refinery IOC million Lt Haldia IOC L /Madras Petro million Lt Chennai Hussam Adeni

Base oil manufacturing Group I - Capacity 900 million Lt/Yr Hind Petroleum – 330 million Lt Mumbai Refinery IOC million Lt Haldia IOC L /Madras Petro million Lt Chennai Hussam Adeni

Additive manufacturing Capacity 55 million kg/yrs Lubrizol 50% JV – IOC & Lubrizol USA 40 million Kg/Yr - Mumbai Indian Additives 50% JV IOC & Chevron Ornite 15 million Kg/Yr - Chennai Hussam Adeni

India – Lube Market Opportunities galore Sixth largest market in the world Third largest market in Asia Pacific Ranks after China and Japan India market 1,200 million litres Lube market worth INR 120,000 million Hussam Adeni

Hussam Adeni Thank you