Sudhir Sachdeva—president of NLGI’s India Chapter and chairman of Siddharth Grease and Lubes Pvt Ltd India and Trinity Lubricants and Grease FZC Dubai—is of the opinion that India, often celebrated for its burgeoning economy and technological advancements, is now carving out a significant niche in the global lubricants and grease market.
This rise is not merely a reflection of domestic growth but also a testament to India’s increasing influence on the international stage. Driven primarily by favorable demographics, rapidly progressing urbanization and average economic growth of more than 6% per annum between now and 2045, India is set to be a major source of incremental energy and oil demand for decades to come.
A Growing Market
India’s lubricant and grease industry has seen robust growth over the past decade, driven by a combination of factors, including industrial expansion, automotive growth and infrastructure development. As one of the largest markets for lubricants in the world, India is home to a diverse range of industries that demand high-quality lubrication solutions. The country’s automotive sector, which continues to expand rapidly, is a key driver of lubricant consumption.
Additionally, the rise of new industries and the growth of existing ones, such as manufacturing and mining, further bolster demand. As the country’s working-age population is expected to expand to around 1.1 billion by 2045, India’s demographics will have a significant impact on future energy and oil demand.
Technological Advancements
Major shifts—most of which are already underway—are set to result in a considerably different global energy mix by the end of this decade. The phenomenal rise of clean energy will bring about new technologies that will reshape how we power everything from factories and vehicles to home appliances and heating systems.
Figure 1. Oil Demand by Sector in India, 2022 and 2045
Source: OPEC World Outlook 2023
Indian lubricant companies are increasingly focusing on innovation and technology to enhance their product offerings. Research and development are becoming central to the industry, with firms investing heavily in creating advanced formulations and sustainable products. This includes developing high-performance lubricants that meet stringent international standards and cater to the needs of modern machinery and vehicles.
Strategic Positioning
India’s strategic location as a manufacturing hub plays a significant role in its growing influence. The country offers cost advantages due to its competitive labor market and lower production costs, making it an attractive destination for global companies seeking to source high-quality lubricants and greases.
Additionally, the Indian government’s support for the manufacturing sector, through various incentives and policy frameworks, further enhances the industry’s growth prospects. India’s primary energy demand is projected to almost double in the outlook period by 2045. This growth will be driven by a growing population, rising urbanization, an expanding middle class and economic development.
Environmental and Sustainability Initiatives
Sustainability is a major focus for the Indian lubricant and grease sector. Companies are increasingly adopting eco-friendly practices and developing products that minimize environmental impact.
Figure 2. Indian Lubricants Demand Outlook by Volume and Value, 2023-2033
Source: Kline & Co.
Consequently, the shift toward biodegradable lubricants and the adoption of green manufacturing processes are key trends shaping the industry. India’s commitment to reducing carbon emissions and promoting sustainability aligns with global efforts to address climate change, making its lubricant and grease sector more competitive on the international stage.
Export Potential
India’s growing expertise and production capacity are not just serving domestic needs but are also positioning the country as a key exporter of lubricants and greases to regions like Asia, Africa and Europe. This expanding export footprint highlights India’s evolving role as a global player in the sector.
Challenges and Future Outlook
According to Sachdeva, despite its progress, the Indian lubricant and grease industry faces a few unique challenges. These include fluctuating raw material prices, regulatory changes and the need for continual innovation.
However, with ongoing investments in technology and a strong focus on sustainability, the industry in India is well-positioned to overcome these hurdles.
Figure 3. Global Grease Production by Region
Estimated to grow at a CAGR of 4% for the next decade, India is a bright spot for the grease industry
Source: NLGI
Looking ahead, India’s role as a superpower in the lubricant and grease world is likely to strengthen. As the country continues to develop its industrial base and embrace technological advancements, its influence in the global market is expected to grow. The combination of robust domestic demand, strategic positioning and a commitment to sustainability underscores India’s emerging prominence in this critical sector.
In conclusion, India’s ascent as a major player in the industry reflects its broader economic growth and technological progress. As the world watches, India is not only meeting the demands of its burgeoning economy but also making significant strides on the global stage.
Sudhir Sachdeva is president of NLGI’s India Chapter, chairman of Siddharth Grease & Lubes Pvt Ltd, India, and chairman of Trinity Lubricants and Grease, UAE.