Texas-based US multinational oil and gas giant ExxonMobil Corporation has planned to set up a lubricants manufacturing facility in Maharashtra with an investment of US$110 million (Rs 900 crore). ExxonMobil’s proposed plant will be the first greenfield project in India. The company has been present in India for the last few years through its marketing offices.
Now, ExxonMobil has chosen Maharashtra Industrial Development Corporation’s Isambe Industrial Area in Raigad as the preferred location to set up its greenfield project. The objective of this greenfield project is to meet the growing demand for lubricants in India and the same trend is projected to continue in the future as well.
The new facility will have the capacity to potentially manufacture 159,000 kiloliters of finished lubricants per year and is expected to begin commercial production by the end of 2025. The plant will be built in one of India’s leading manufacturing hubs in the area MIDC’s Isambe industrial plant in Raigad, which is expected to generate around 1,200 new jobs at this plant.
“We are proud to deepen our long-standing commitment to India with our first greenfield investment,” said Monte Dobson, lead country manager for ExxonMobil’s subsidiaries in India.
In fact, the ‘Make in India’ initiative aims to encourage multinational companies to invest in India and promote innovation and technology in the manufacturing sector. ExxonMobil’s investment in a greenfield project is a testament to this effort, and is expected to have a positive impact on the growth of the manufacturing sector in India.
The commissioning of this lubricant manufacturing facility will provide a much-needed boost to domestic manufacturing companies, particularly in sectors such as steel, power, mining and construction, ensuring a reliable supply of lubricants from high quality Also, production of lubricants in India will help reduce the country’s dependence on imported lubricants. Also, passenger and commercial vehicles could get ExxonMobil’s made-in-India lubricants. Once this plant is operational, national MSMEs will be able to supply basic raw materials and additives. Also, the Indian packaging industry will get a new impetus.
India, being the world’s third largest lubricants market, has seen steady growth in demand over the past few years. With a pick-up in demand for lubricants post-pandemic, especially due to accelerating industrial growth, India’s lubricants industry has seen steady growth in recent years. With more vehicles hitting the road, India’s demand for lubricants is expected to grow further in the coming years.
Interestingly, the automobile industry has been the main driver of demand for lubricants in India, which received ample support from rapid industrialization. Reports estimate that the lubricants market in India will be $1.4 billion in 2020 and is expected to reach $1.8 billion by 2027.
All the big companies in India who have a factory to operate plants and machinery, use mobile lubricants to prevent the machines from generating too much friction and thus making noise and thus operate the machine smoothly. Mobil lubricants are used in all industries involved in the manufacture of steel, cement, pumps or any other type of product or machine.
DILIP KUMAR JHA
editor
dilip.jha@polymerupdate.com
