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• Positive factors:
- Growing disposable income
- Changing Demographics
- Changing lifestyle
- Improvement in Road infrastructures
- Increased usage of automotive transportation
- Rural demand
- Support from Government
- One of the fastest growing markets in the world
- Migration to 4 wheelers
• Increasing demand:
- OEM tie-ups
- Pollution norms
- Advances in technology and awareness among
consumers
- Engine oil, Brake oil, Coolant oil, Gear oil.
Future Challenges
Market Size & Behaviour
• 5th largest market in the world, worth
Rs.17000 crores in 2009.
• 6% annual growth.
(Rs.17000 Cr)
• 67% - Automotive lubricants segment Lubricant
• Fragmented market with 22 players & 30 Market
brands.
• 70% share of 4 big players: IOC, HPCL,
BPCL & Castrol.
• 50% share of PSUs.
• Leading PSU brand: Servo (IOC)
• Leading Private brand: Castrol
(67%)
• Industrial Marine & Energy
Unorganized sector. Automotive
segment segment
• Little scope for Brand Differentiation. segment
• Price wars
• Market Survival:
- Own refineries
- Solid R&D
- Wide distribution network
- Strong Brand recognition (70%) (30%)
- Innovative Business Plan CI Engines (Diesel) SI Engines (Petrol)
- Consumer promotions.
- Consumer relationship.
Consumer Buying Behaviour
• 2 Basic Types of Customers:
- Quality Conscious
- Price Conscious
• Continuous Innovation.
- Castrol: Liquid Engineering