HPCL

LUBRICANTS
On
E-Commerce
Platform

BY:
SANANDAN PAHARI
NILADRI CHAKRABORTY

AutomotiveGrades

Engineoils
DieselEngineoils

HylubeHdx MG 20W40

Hylube X3 10W 30,40,50

Hylube MTU 40

Hp Laal Ghoda 20W40

HpMilcy Power 15W40

HpPumpset oil(LG)20W40

Hp Rail Road oil 813M

Hylube X3 10W(KB),30(KB)

HylubeMilcy 30,40,50

Hp Rail Road oil 613

Hp MILCY EUROL 15W 40

Hp MILCY Super 20W 40

Hp Rail Road oil 713

HpHylube LL 15 W 40

Hylube Extra 20W 40

Hylube Rail Road oil 817M

HpMilcy Turbo Tech 15W40

PetrolEngineApplication

FourWheeler
o

Hp Extra Super Motor oil 20W40/20W50

Hp Extra Super Motor oil MG 20W40/20W50

Hp CRUISE 15W 40

Hp RACER 4

Gearoils

Hp Gear oil EP 80W,90,140

Hp Gear oil EP 80W-90

Hp Gear oil EP 75W-90

Hp Gear Oil XP 80W,90,140

Hp Gear oil XP 85W 140

Hp Gear oil XP 80W-90

AutoSpecialities

HpThanda Raja

HpKoolgard

HpKoolgard P

Hp Radiator Protector

HpS.D.Brake Fluid DOT3

HpS.D.Brake Fluid DOT4

Hppowerfluid TH 46

Hppowerfluid LTP-100

Hp Shock Absorber oil

Hp Shock Absorber Oil AW

Hp Shock Absorber Oil TELE

Hp Shock Absorber Oil GB

Greases

Automotivegreases
o

Hp Chassis Grease

Hp Wheel Bearing Grease

Hp multipurpose Grease 2,3

HpLithon RR-3

Associated Products:

Solvent 1425

Turpentine Oil (MTO 2445)

Distilled Water

Wax

Polish Clothes

OVERVIEW
The lubricants industry in India is dominated by national oil companies namely IOC,
BPCL and HPCL that account for almost half of market share. Rest of the market
comprises of private multinationals like Shell, Exxon Mobil, Total, IPOL and numerous
smaller and loyal players.
Volume consumption of lubricants in India has consistently declined over past few years
as a result of improving lubricant and engine quality. Industry margins in the year 2013
was affected by slower GDP growth rate accompanied by subdued industrial activity .
The rate of growth is at 2.3 and 1.6 per cent per year vis--vis 0 2 per cent globally 2.5
per cent of world lubes market, perhaps, amongst the highest in the world. The Indian
lubricants market would grow at a considerable CAGR rate thus exceeding USD 7713
million by 2017.
The per capita lubricant consumption in India is quite low compared to developed
countries. However, a comparison with other developing countries like China and
Indonesia reveals significant potential in India for growth in lubricant consumption.

Indian Lubricant Industry

4%

3%

6%

6%

IOC

HPCL

34%

BPCL

IBP

Castrol

Gulf Oil

Tide Water

19%

2%
8%

HPCL LUBRICANTS

H
A
P
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t
L

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m
o
t
i
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e
MARKET DATA:

18%

Elf

Others

Sales

7%

8%
Diesel Engine Oil

14%

2-Stroke
4-Stroke
Others

71%

Figure 1: Dolat Capital data

STRATEGY:
Based on the market data and trend in the lubricant industry in India, we
propose the following strategies for which will help HPCL to successfully
tap the e-commerce market:
Our proposal is to initially target the following 3 customer segment:
Retail or Household: This segment will comprise customers who own
a bike or a car or both. Around 26% of Indian population own either
a 2-wheeler or a car. This will also be a big market for accessories
such as Solvents, Distilled water etc. Also more than 40% of the
population own a bicycle which is a prime target for greases.
Small workshops and repair shop: Indian roads are filled with repair
shops by the road. We will target them with the entire range of
products from engine oils to grease etc.
Research/Educational Institutions: Target segment will be the
workshops and automobile labs in engineering institutions. Also
research institutes of Automobile like ARAI, mining research
institutes like IMMT etc.
We are targeting 21% market share of 2-Stroke and 4-Stroke
lubricants and some part of 8% in the others segment. This segment
include Greases, Turpentine Oil, Solvents and Emulsions.
Indian lubricant industry is around INR 189 billion. We are targeting
21% of this market which is roughly INR 40 billion.
E-commerce is a forum that can provide enhancing of the market
capture of HPCL lubricants and provide cheaper and faster delivery
of products to the customers.
Target
customers:
Retailers,
small
workshops
and
educational/research institutes.
Selection of one particular dealer from each metro cities who will be
taking control of delivery and dispatching of our products in their
relevant zones/states.
Selection of dealership would be completely performance based
wherein the past performances and span of control would be
considered.
Online orders would be received by a central online department
created at headquarters in Mumbai
Forwarding of online orders from Mumbai to local dealers in different
metro cities.
Strategy imitator: Boschs successful strategy to sell hand tools in
online forum
Market segmentation: To understand exact requirement of
customers in different regions.
Promotion through social media:
Facebook

Twitter
Flash discounts and promotion at e-Commerce sites like
Flipkart, Snapdeal
Banners on local transport (bus and auto); providing initial samples
at discount to local transport owners to get permission for banners
for free.

PRODUCTS
Target customer

Main product

Associated product

DieselEngineoils

HylubeHdx MG

20W40
Hylube X3 10W

30,40,50
Hylube MTU 40

Hp Laal Ghoda

20W40
HpMilcy Power

15W40
HpPumpset

oil(LG)20W40

Small workshops

HpThanda Raja

HpKoolgard

HpKoolgard P

Hp Radiator Protector

HpS.D.Brake Fluid DOT3

HpS.D.Brake Fluid DOT4

Hppowerfluid TH 46

Hppowerfluid LTP-100

Hp Shock Absorber oil

Hp Shock Absorber Oil AW

Hp Shock Absorber Oil TELE

Hp Shock

Absorber Oil GB
Greases

Automotivegreases
o

Hp Chassis Grease

Hp Wheel Bearing
Grease

Hp multipurpose Grease

Solvent 1425

Distilled Water

2,3
HpLithon RR-3

PetrolEngineApplication

FourWheeler
Hp Extra Super Motor oil

20W40/20W50
Hp Extra Super Motor oil

MG 20W40/20W50

Target customer

Hp CRUISE 15W 40

Hp RACER 4

Main product

Associated product

DieselEngineoils

HylubeHdx MG

20W40
Hylube X3 10W

30,40,50

Hylube MTU 40

Hp Laal Ghoda
20W40
HpMilcy Power

15W40
HpPumpset

oil(LG)20W40

Retailers

Hp Radiator Protector

HpS.D.Brake Fluid DOT3

HpS.D.Brake Fluid DOT4

Hppowerfluid TH 46

Hppowerfluid LTP-100

Hp Shock Absorber oil

Hp Shock Absorber Oil AW

Hp Shock Absorber Oil TELE

Hp Shock

Absorber Oil GB
Greases

Automotivegreases
o

Hp Chassis Grease

Hp Wheel Bearing
Grease

Hp multipurpose Grease

Solvent 1425

Turpentine Oil
(MTO 2445)

2,3
o

HpLithon RR-3