This post is a part of Climate G2I Intelligence series from Energy Alternatives India (EAI), India’s leading climate-tech consulting firm.
G2I stands for Gateway 2 India, and provides comprehensive market intelligence and go-to market assistance for International firms entering the Indian climate-tech market. More about Climate G2I from here
ExxonMobil, a global leader in lubrication technology, is investing ₹900 crore to build a new lubricants production plant in Maharashtra, India. The plant is expected to be operational by the end of 2025 and will create 1200 jobs. By building a manufacturing plant in Maharashtra, ExxonMobil aims to increase its domestic production capacity within India. This could potentially reduce reliance on imports and improve their ability to cater to the Indian market.
ExxonMobil’s investment signals their confidence in the Indian market’s potential and aligns with the “Make in India” initiative. This investment holds promise for increasing domestic production of lubricants, potentially reducing reliance on imports. Furthermore, the creation of 1200 anticipated jobs can contribute significantly to the local economy and boost skill development.
The Indian lubricants market is expected to grow at a CAGR of 5% over the next five years, driven by factors such as increasing industrial activity, growing vehicle sales, and rising disposable incomes. ExxonMobil’s new plant will be well-positioned to meet this growing demand.
The Indian lubricants sector is experiencing dynamic growth, driven by several factors. Expanding infrastructure development, a robust automotive sector, and the growth of manufacturing industries fuel the demand for high-quality lubricants. Government initiatives like “Make in India” promote self-reliance in critical areas, incentivizing domestic production and encouraging collaboration between local and international players. Moreover, a focus on sustainability and environmental concerns is driving innovation in the sector, with companies exploring bio-based lubricants and eco-friendly disposal solutions.
Beyond ExxonMobil, the Indian lubricants market is experiencing increased interest from international players. It exhibits a mix of indigenization and international involvement, with established Indian companies like IOCL and HPCL holding a strong presence alongside major global brands
Despite the promising growth, challenges remain for those entering the Indian lubricants market. The highly competitive landscape, with established global and domestic players vying for market share, is a significant obstacle. The presence of counterfeit products poses a serious threat, requiring robust brand protection strategies from companies operating in this sector. Additionally, stringent environmental regulations and evolving waste management practices necessitate continuous adaptation and compliance efforts.
This post is a part of Climate G2I Intelligence series from Energy Alternatives India (EAI), India’s leading climate-tech consulting firm.
G2I stands for Gateway 2 India, and provides comprehensive market intelligence and go-to market assistance for International firms entering the Indian climate-tech market. More about Climate G2I from here
