Stress on bio-degradable lubes
The sluggishness in the Indian economy due to stagnating demand and high inflation had resulted in high interest rates and depreciation of the Indian rupee. Consequently the lubricant industry also passed through difficult times.
With the change in the consumption pattern, focus is now on the various marketing drives such as fuel economy improvements, engine 
protection and constant technology upgradation in the industry. Further, the growing demand for sophisticated passenger cars and high-tech trucks and buses, and with the entry of multinational car manufacturers, the Indian lubricant industry is poised to grow in the coming years. Also there is a gradual shift towards high quality lubricants with longer drain intervals, leading to reduced lubricant consumption per vehicle and slower growth in overall engine oil demand.
According to a study conducted by Ken Research, the Indian lubricant market is the fifth largest in the world in terms of consumption after the US, China, Russia and Japan. Growing personal disposable incomes, improvement in the road infrastructure, increasing usage of automotive transportation, rural demand, growing industrial production and support from the Government are some of the factors for the growth of Indian lubricants market. The industry revenues have increased from $1,611.7 million in 2006 at a CAGR of 18.6 per cent and is expected to exceed $7,713 million by 2017 due to the major push from the automobile market in India.
Asia-Pacific region development
A recent survey by Research and Markets states that the Asia-Pacific region accounted for the largest share of global lubricants demand with 42 per cent of the overall lubricants market in 2012. By 2017, with the exception of Europe and North America, all regions are expected to increase their global share, with the Asia-Pacific region expected to account for 46 per cent, i.e., 17 million tons, while the Middle East & Africa, South and Central America are expected to account for respective shares of 11.6 per cent and 8.9 per cent of the global lubricants market. Europe and North America are expected to account for 16.7 per cent of global lubricants demand each by 2017.
Major players in India
The lubricant industry in India is broadly divided into three major market sectors – automotive, industrial & marine and energy applications. The industry is led by three major PSUs, namely, Indian Oil Corporation Ltd., Hindustan Petroleum Corporation Ltd., Bharat Petroleum Corporation Ltd., who together contribute nearly half of the market in terms of volumes while the rest is accounted for by multinational companies such as Exxon Mobil, BP-Castrol, TotalFinaElf, Shell, Gulf Oil, Tide Water Oil, etc., and numerous other domestic players leading to a very competitive market scenario. The size of the organized lubricants industry in India is Rs. 230 billion in value terms and 1.8 mt in volume terms. Volumes have been growing at three to five per cent per year, as the drainage period (longevity) has been continuously increasing.
Stronger emission norms and demand for fuel efficiency are driving OEMs to keep developing new engine technology at a faster pace. India has also become an export hub for many global players who are demanding higher specification engines and engine oils to meet more stringent international specifications. It is expected that these factors will result in a demand for higher quality lubricants, leading the industry towards wider acceptance of synthetic lubricants.
Biodegradable lubes
Environmental research shows that conventional mineral oil-based lubricants are extremely harmful for the biosphere when they get into the environment. Due to its poor degradability, mineral oils remain in the eco-system for a long time, even when highly diluted, which will lead to fatal eco-toxicological effect. High sums have to be spent for the elimination of damages which clearly show that economy and ecology today have the same priority. Thus, most of the oil majors in India like IOC, BP-Castrol, etc., as well as institutions like I.I.P., TERI, CLRI, etc., have been doing a lot of research and conducting trial runs on degradable green lubricants and would soon evolve a marketing and branding strategy for their products.
Biodegradable lubricants can be vegetable oil-based or based on synthetic esters manufactured from modified renewal oils, from mineral oil-based products. These lubricants which are mainly derived from genetically modified vegetable oils can be used in agricultural, forest machinery and also in transport sector. Most liquid lubricants used at present all over the world are petroleum-based mineral oils.