Idemitsu Lube India Pvt Ltd. began production Oct. 30 at its new 2.6 billion rupee (U.S. $41.8 million) blending plant in India, and targets sales to Japanese-branded motorcycle and auto dealers.
Completed in August, the plant has 70 million liters per year production capacity and is situated on 78,000 square meters in the Patalganga Industrial Estate area in the state of Maharashtra, according to an Oct. 30 Idemitsu news release.
With the construction of its own blending plant, the company plans to build independent networks in India from manufacturing through distribution. Idemitsu said the new plant will strengthen its lubricant sales in India, aiming for sales volume of 70 million liters and net sales of 11 billion rupees (U.S. $178 million) in 2018.
Demand for lubricants in India in fiscal 2012 has increased with the advancement of Japanese motorcycle and automobile makers into the market accompanying Indias motorization, Idemitsu stated. India already has the worlds third-highest level of lubricant demand, after China and the United States. By fiscal 2021, Indias vehicle production is forecast to increase further to 23 million motorcycles per year and 11 million automobiles per year, and the nations lubricant demand also is projected to expand, to 1.5 times its current level or more.
New Delhi-headquartered Idemitsu Lube India is a subsidiary of Idemitsu Kosan Co. Ltd., based in Tokyo, Japan.