ILMA Compoundings – January 2019 - 24

Blending in India may also be an option for foreign players, especially
with the reduction in the goods-and-service tax for base oils to 18
percent last year.
special EP [extreme pressure] property,
a specific hardness greases or extra
corrosion-resistance property."
Although markets in Asia are still relatively open, Thai Petroleum & Trading
"has seen over the years the implementation of various regulations on chemical
inventory [with which blenders have
to comply]." However, the company,
which exports to the region, said "We
don't see any serious issues."
The company supplies greases
to several industries in the region,
including mining, construction and
steel mills, and plans to expand its
product ranges to other applications in
the food and windmill industries.
In Asia, using smart machines and
the internet of things to help monitor a machine's physical lubricant
parameters, failure modes or lubricant
functionalities, is still in its infant
stage. "China would generally be the
first to implement such technology,

24

JANUARY 2019

| COMPOUNDINGS | ILMA.ORG

followed by Thailand. Japan is also the
one to look out [for] with connectivity
solutions," said Goh.
Asia's economic giant, India, is
expected to continue its growth. "India's
[gross domestic product] over the next
three years is expected to be in the range
of 7.4 percent to 7.7 percent. Industrial
lubricants is estimated to grow by 4
percent, which would be higher than
the global rates," Shailendra V. Gokhale,
managing partner and founder of
Rosefield DAA International Consultancy LLP, told Compoundings. The
company is based in Mumbai, India,
and specializes in business consultancy
for the lubricant industry.
Gokhale says that the Indian lubricant market involves two segments: the
low-end commodity, or general market,
lubricants and the high-performance
lubricants.
"Today, national oil companies
(NOCs) and the smaller private Indian

lubricant blenders dominate the Indian
market, whereas MNCs (multinationals) like Fuchs, Castrol, ExxonMobil,
Valvoline and others are enjoying a
sizeable share of high-performance
lubes market. However, they still need
to be wary of NOCs," he said.
"Also, it is important to note here
that most of these players are blending
and selling products locally, so they
are preferred over imported lubes in
India," he added.
Blending in India may also be an
option for foreign players, especially
with the reduction in the goods-andservice tax (GST) for base oils to 18
percent last year. "With reduction in
GST, it would be absolutely an attractive
option allowing foreign players to be
closer to their customers," said Gokhale.
Entry into the Indian industrial
lubricants market is also easing.
"Customs duties have come down
drastically, so there is not much
difference between local and imports.
Also, India has improved a lot on 'ease
of doing business index,' so importing
into India [doesn't] have many obstacles, unlike before," he said.
Although barriers to market entry
have eased, local knowledge is key.
"Indian industrial users always feel
more comfortable working with local
companies producing and offering the
products at local level, purely from a
service point of view. They will go to
foreign blenders only if they are not
getting cost-effective solutions from
local players," he added.
Gokhale sees potential in the Indian
market. "India is growing exponentially, and the Indian government has
embarked on an ambitious initiative
called 'Make in India.' So, there are
enormous opportunities for industrial
lubricant blenders from the United
States and, in my view, this is a right
time to enter India," he added.
Ching is a journalist and freelance writer based
in Singapore.
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ILMA Compoundings – January 2019

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