The United Arab Emirates-based German Mirror Lubricants and Greases launched its Mirr Oils brand of lubricants in India.
German Mirror - which has approvals from major automotive manufacturers such as Porsche, Daimler, Volvo, Cummins, Volkswagen and Man - aims to acquire a 0.5 percent market share in India by the end of March 2019, Managing Director Mohammed Hussein Hindi said in a recent statement.
The manufacturer has tied up with Mumbai-based A.N. Corp. to distribute its products. German Mirror said that during the initial phase, Mirr Oils will cover the states of Maharashtra, Gujarat, Madhya Pradesh, Goa, Karnataka, Kerala, Tamil Nadu, West Bengal and Odisha. The company plans to cover eight more states by June 2018, it added.
The company said it will offer automatic transmission fluids, gear oils, specialty fluids, passenger car motor oils and heavy-duty diesel engine oils.
India is the third-largest market in the world after China and the United States, with six percent of the global market share, Hindi said. India has the potential to be in top two as the domestic lubricant market has grown by 13 percent since 2013 despite a global slowdown in the last couple of years.
Hindi noted that German Mirror, which has presence in more than 70 countries, is also evaluating market conditions to set up a blending plant in India in the near future. We are ready to invest and not look for profits for the next five years in India, the company said in statement on its website. It is important for us to get a strong foothold in the market. We will take a decision of putting up a manufacturing facility here by 2020.
Indias 2.4 million metric tons finished lubricants market is dominated by three national oil companies - Bharat Petroleum Corp. Ltd., Hindustan Petroleum Corp. Ltd., and Indian Oil Corp. Ltd. - as well as private players including BPs Castrol India Ltd., Tide Water Oil Co. and Gulf Oil Lubricants India Ltd.
German Mirrors entry in India follows the launch of Suzukis Ecstar brand of lubricants and coolants in the country in October. Several lube suppliers have tie-ups with original equipment manufacturers, and the entry of new players in the market will intensify competition among suppliers as they seek to grow their market share in the country.