ExxonMobil bets big on Indian lubricants segment

Global oil and gas major ExxonMobil is working towards strengthening its foothold in the automotive lubricants segment in India as it sees a potential for growth within the lubricants industry.

“In our global portfolio, India is one of the top markets pertaining to industry demand, and hence a very important market for us. We have traditionally had a presence in the country, but we want to grow even more. India is a market which is attracting more of our attention and our investments,” Pablo Conrad, global brand manager, Passenger Vehicle Lubricants (PVL), ExxonMobil, told Autocar India.

India is the third largest lubricants market in the world, behind America and China, and around 58 percent of the same is contributed by automotive segments in different spaces.

Talking about the future area of focus, Conrad said the company is directing more efforts towards the two-wheeler segment where it sees a high level of growth. “We have been surprised by the growth rates in the two-wheeler segment, so that’s an area where we are paying more attention now and are investigating additional ways of meeting those consumer needs,” he said.

The lubricants space in India is highly competitive. The US oil major, which has more than 50 distributors in the country and over 500 stores under the Mobil1 brand, aims to expand its presence in the near term by strengthening its partnership with distributors and automakers.

“We believe it’s a great way to get into a marketplace with leading automakers and continue the relationship of technology development. We want to expand our relationship with them. In India, we have a great partnership with Maruti Suzuki and Tata Motors among others, and globally, too, we are working in close collaboration with automakers such as Porsche, Mercedes, and Bentley,” he added.

In the lubricants segment in India, Indian Oil Corporation commands the highest share, followed by other majors like Bharat Petroleum Corporation and Hindustan Petroleum Corporation, according to reports. While the above three cover nearly half of the market, the rest consists of private players such as Shell, Gulf Oil, Castrol, ExxonMobil, IPOL and others.

Earlier this year, ExxonMobil Lubricants announced that it will be the official partner of the three Maruti Suzuki rallies that will take place in 2016, starting with the 14th iteration of the Maruti Suzuki Desert Storm. Talking about the partnership, Conrad said, “Apart from obtaining a great level of exposure by partnering with Maruti Suzuki, we also gain insights into the working of our products as they operate in cold or hot conditions, and even dusty environments.”

The company recently launched its Mobil 1 5W-30 synthetic engine oil in the Indian retail market under its lubricants arm, ExxonMobil Lubricants. Its existing range of oils in India includes Mobil 1 0W-40, Mobil Super 4T 20W-40, Mobil 1 5W-50 and Mobil 1 ESP Formula 5W-30.