Industry Overview
Lube oils encompass a broad range of lubricating materials used to reduce friction, wear, and heat in machinery and equipment. Most lube oils are derived from the more viscous portions of crude oil remaining after the removal of gas oil and lighter fractions through distillation. Differences in crude composition and hydrocarbon structures influence the physical and performance characteristics of finished lubricants.
The manufacture of finished lubricating oils generally involves selecting and aggregating suitable crude sources, distilling crude into fractions with similar boiling ranges, processing the fractions to remove undesirable constituents or convert them into more useful materials, and blending them to achieve the required physical characteristics. Chemical additives may also be incorporated to improve performance.
Lube oils are broadly classified into naphthenic and paraffinic oils. Naphthenic oils are valued for their fluidity at low temperatures, while paraffinic oils are commonly used because of their comparatively low viscosity and density. The lubricants industry also includes a wide range of greases, such as lithium, calcium, sodium, aluminium, complex and mixed-soap greases, as well as soap-free, PTFE, silicone, molybdenum-modified, specialty, and synthetic greases. These products serve applications ranging from bearings and conveyors to heavy construction equipment, rolling equipment, open gearing, wire ropes, and general industrial machinery.
Cost Estimation
| Particulars | Cost |
|---|---|
| Land & Building (16,000 sq.mt.) | Rs. 10.55 Cr |
| Plant & Machinery | Rs. 5 Cr |
| Working Capital for 2 Months | Rs. 33.84 Cr |
| Total Capital Investment | Rs. 49.69 Cr |
| Rate of Return | 48% |
| Break Even Point | 31% |
Content Index
- INTRODUCTION
- BASICALLY, LUBE OIL IS CLASSIFIED INTO TWO PARTS
- GREASES
- TYPE OF GREASE
- MINERAL OF OILS MIXED SOLIDS
- HEAVY-ASPHALTIC-TYPE OILS BLENDED WITH LIGHTER OILS
- EXTREME-PRESSURE GREASES
- ROLL NECK GREASES
- SOAP THICKED MINERAL OILS
- MULTI- PURPOSE GREASE
- VARIANTS OF GREASES
- VARIANTS OF LUBRICANT OILS
- USES AND APPLICATIONS
- USER INDUSTRIES OF LUBRICANTS
- LUBE OIL
- FLOW CHARACTERISTICS ARE GIVEN AS FOLLOWS
- GREASES
- 1) VISCOSITY OF THE OIL
- 2) LOSS OF EVAPORATION
- 3) OXIDATION STABILITY
- 4) HEAT STABILITY
- COMPONENTS FOR GREASE MANUFACTURE
- PALM OIL
- THICKENER
- SPENT BLEACHING EARTH
- FUME SILICA
- ADDITIVES
- USUAL GREASE ADDITIVE LEVELS (%)
- THE MOST COMMON ADDITIVES ARE:
- COMPONENTS AND CHARACTERISTICS OF GREASE
- GREASE COMPONENTS
- GREASE CONSISTENCY
- DEFINITION OF NLGI GRADES
- GREASE STRUCTURAL STABILITY
- GREASE AT END OF ASTM D1831 ROLLER TEST
- APPLICATION AND FUNCTIONAL PROPERTIES OF GREASE
- FUNCTIONAL PROPERTIES OF GREASE
- B.I.S. SPECIFICATION
- GLOBAL MARKET POSITION OF LUBRICANTS
- MARKET OVERVIEW OF LUBRICANTS IN INDIA
- OIL SUPPLY AND DEMAND IN INDIA
- GAS SUPPLY AND DEMAND IN INDIA
- EXPORTS OF PETROLEUM PRODUCTS FROM INDIA
- UPSTREAM SEGMENT: CRUDE OIL AND GAS PRODUCTION
- UPSTREAM SEGMENT: EXPLORATION AND DEVELOPMENT ACTIVITIES
- PIPELINES: CRUDE PIPELINE NETWORK
- PIPELINES: EXISTING PIPELINES IN INDIA
- PIPELINES: REFINED PRODUCTS AND LPG PIPELINE NETWORK
- DOWNSTREAM SEGMENT: REFINERY CRUDE THROUGHPUT
- DOWNSTREAM SEGMENT: PETROLEUM PRODUCTS
- DOWNSTREAM SEGMENT: DISTRIBUTION AND MARKETING
- STATE-WISE CRUDE RESERVE, CAPACITY AND THROUGHPUT
- MARKET OVERVIEW OF GREASE IN INDIA
- MANUFACTURERS/SUPPLIERS
- LUBRICATING OIL FORMULATION
- TYPICAL PROPERTIES OF THESE MOLECULES ARE:
- GRADE
- TYPICAL GREASE COMPOSITION
- FORMULATION OF LUBRICATING GREASE USING BEES WAX THICKNESS
- FORMULATIONS OF GREASES LEAD BASE LUBRICANT GREASES
- PROCEDURES
- MANUFACTURING PROCESS
- (A) FOR LUBE OIL BLENDING
- FORMULATION
- PROCESS FLOW DIAGRAM
- MANUFACTURING PROCESS
- FORMULATIONS OF LUBRICATING GREASES
- FORMULATION OF LUBRICATING GREASE USING BEES WAX THICKNESS
- SOME TYPICAL FORMULATIONS OF DIFFERENT TYPES OF GREASES ARE GIVEN BELOW
- 1) SODIUM SOAP GREASE
- 2) BALL - BEARING GREASE
- 3) HIGH SPEED BALL BEARING GREASES
- 4) CALCIUM SOAP GREASES
- 5) STUFFING BOX GREASES
- 6) TRANSPARENT LUBRICATING GREASES
- FORMULATIONS OF CALCIUM BASE GREASE
- FORMULATION NO. 1
- GREASE FORMULATION GUIDE FOR GREASE MANUFACTURE
- PRACTICE FOR BLENDING AND HANDLING LUBRICANT PRODUCTS
- SUPPLIERS OF RAW MATERIALS
- LUBRICANTS & SPECIALITY PRODUCTS
- SUPPLIER OF BASE OILS
- RESORCINOL
- NAPHTHOLS
- ANTIOXIDANT
- LUBE OIL BLENDING
- SUPPLIERS OF RAW MATERIALS
- SUPPLIERS OF PLANT AND MACHINERY
- APPLICATION PROCEDURE
- CONSTRUCTION AND SPACING OF TANKS
- STORAGE TANK DESIGN SPECIFICATION AND FITTINGS
- IN ALL CASES, TANKS SHALL
- ENVIRONMENTAL PROTECTION
- FIRE FIGHTING AND PROTECTION MEASURES
- QUALITY CONTROL
- LICENSING PROCEDURE
Appendix
- 01. PLANT ECONOMICS
- 02. LAND & BUILDING
- 03. PLANT AND MACHINERY
- 04. OTHER FIXED ASSESTS
- 05. FIXED CAPITAL
- 06. RAW MATERIAL
- 07. SALARY AND WAGES
- 08. UTILITIES AND OVERHEADS
- 09. TOTAL WORKING CAPITAL
- 10. TOTAL CAPITAL INVESTMENT
- 11. COST OF PRODUCTION
- 12. TURN OVER/ANNUM
- 13. BREAK EVEN POINT
- 14. RESOURCES FOR FINANCE
- 15. INSTALMENT PAYABLE IN 5 YEARS
- 16. DEPRECIATION CHART FOR 5 YEARS
- 17. PROFIT ANALYSIS FOR 5 YEARS
- 18. PROJECTED BALANCE SHEET FOR (5 YEARS)
Frequently Asked Questions
The two basic classifications of lube oil described in the report are naphthenic oil and paraffinic oil.
Naphthenic oils are particularly valued for their fluidity at low temperatures, while paraffinic oils are widely used because of their comparatively low viscosity and density. The selection of a lubricant depends on the operating conditions, equipment design, temperature range, load, speed, and required performance characteristics. Industrial formulations may also incorporate additives to improve properties such as oxidation stability, heat resistance, and protection against wear.
Industrial grease includes lithium, calcium, sodium, aluminium, complex and mixed-soap greases, along with soap-free, PTFE, silicone, molybdenum-modified, specialty, and synthetic greases.
The report also discusses mineral oils mixed with solids, heavy-asphaltic oils blended with lighter oils, extreme-pressure greases, roll neck greases, soap-thickened mineral oils, and multipurpose grease. Each type is formulated for particular operating conditions and applications, with factors such as temperature, water exposure, load, speed, mechanical stability, and equipment design influencing grease selection.
Multipurpose grease is designed for general lubrication applications where highly specialized grease characteristics are not required.
Such greases combine properties associated with more than one specialized grease and can simplify lubricant inventory and application practices. The report notes that many multipurpose greases use barium, lithium, or calcium-complex soap bases. Desired characteristics include good water resistance, mechanical and oxidation stability, suitable temperature performance, and effective lubrication across a range of general industrial applications. Selection should still be based on the equipment manufacturer's requirements and operating conditions.
Extreme-pressure grease should be selected according to the load, speed, surface condition, temperature, and design characteristics of the equipment.
EP greases contain additives intended to improve film strength and help prevent metal-to-metal contact under demanding conditions. The report describes additive systems containing compounds based on elements such as chlorine, phosphorus, and sulfur. The appropriate formulation depends on the application and operating environment. Compatibility with existing lubricants, equipment materials, temperature limits, and manufacturer recommendations should also be considered before selecting or changing an EP grease.
Important grease properties include consistency, structural stability, temperature performance, water resistance, oxidation stability, and mechanical stability.
The required balance of properties varies with the application. Bearing and machinery lubrication can involve different demands related to speed, load, temperature, moisture, and operating environment. The report also identifies viscosity, evaporation loss, oxidation stability, and heat stability as important lubricant characteristics. NLGI grade is another key consideration because it indicates grease consistency and helps determine whether a grease is appropriate for a particular lubrication system.
The main steps include crude selection and aggregation, distillation, processing of fractions, and blending.
Crude sources are selected according to their principal hydrocarbon characteristics and then distilled to separate fractions with suitable boiling ranges. Processing is used to remove undesirable constituents or convert certain materials into more desirable components. Finally, the processed materials are blended to achieve the physical characteristics required for finished lubricants. Chemical agents may also be incorporated to improve performance. The report separately covers lube oil blending, grease formulations, manufacturing processes, storage, quality control, and related plant practices.
A lubricant manufacturing facility requires suitable storage, processing, blending, quality-control, environmental, and fire-protection arrangements.
The report covers construction and spacing of tanks, storage tank design specifications and fittings, environmental protection, fire-fighting and protection measures, quality control, and licensing procedures. Proper segregation and handling of raw materials, finished lubricants, additives, and other inputs are important for safe and consistent production. Plant layout and equipment selection should be developed according to the manufacturing process, applicable standards, material characteristics, storage requirements, and relevant regulatory obligations.
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