Detailed Project Report (DPR) on lubricating oil (20w40 grade sn type) manufacturing with formula

LUBRICATING OIL (20W40 GRADE SN TYPE) MANUFACTURING WITH FORMULA
[CODE NO.3406]  

Economic, political, and regulatory forces are reshaping the dynamics of lubricants supply and demand throughout the world, and opportunities to grow this business continue to emerge. India, in particular, has emerged as a key growth market, as well as a source of competitively priced lubricants. Strong growth in the Indian automotive, power and engineering sectors is creating new market opportunities for lubricants manufacturers.

In the automotive sector, consumers are migrating to better quality vehicles and increase in demand for four stroke motorbikes, tie ups with original equipment manufacturers using higher grade lubricants; this is benefiting multi-grade lubricant products with strong brand recognition and wide distribution. Whilst there are no restrictions on foreign lubricant manufacturers from establishing 100%-owned operations in India, many have chosen to partner with National companies. (Merger & Acquisition). The automotive lubricant market is estimated to have grown volumes by over 3% on the back of a strong economic performance. Increased motorcycle and car stock, growth in agricultural driven lubes consumption and a booming construction sector have been the primary factors to this. The old generation truck market and the 2-stroke motorcycle lubes market, is projected to continue declining sharply in the short-term.

The trends highlighted above are expected to continue, Thus, lube consumption is projected to grow strongly in cars and 4-stroke bikes. With the rapid growth in vehicle and infrastructure sector, the shape of the customer groups would be undergoing significant change in the future. Fleets, construction companies and large workshop groups would be forming an increasing percentage of the market. Another trend, which is rapidly catching up, is the emergence of organized retail chains. While the impact on lubricant sales at this juncture is minimal, these outlets could present opportunities for marketing in rural areas who are customers in the future. It is also expected that the rural growth of 4-stroke motorcycles will continue to outstrip urban demand in the foreseeable future. Penetration in rural and semi urban areas is extremely low and could provide opportunities for marketers. New entrants will have to deal with uncertainty of demand, different and involving customer needs, a relatively poor supplier base, a market crowded with competition and niche market specially in rural areas.

Lubricants are used to reduce friction between moving parts, thus resulting in lower wear and tear. In many machines, lubricants also play a role in cooling, rust prevention and help to avoid deposition of solids between closely fitting parts. Liquid lubricants are most commonly used. A lubricant is a blend of base oils and performance enhancing additive as required by engine, gearbox and other applications areas.

COST ESTIMATION

Plant  Capacity                                           :       1.00 KL/day
land & Building (800 Sq.Mtr)                   :       Rs.  95.00 Lacs
Plant & Machinery                                     :        Rs.  30.00 Lacs
Working Capital for 2 Months                 :        Rs.  57,37 Lacs
Total Capital Investment                          :       Rs.  1.86  Cr
Rate of Return                                           :       29%
Break Even Point                                      :        53%

INTRODUCTION    
PROPERTIES & CHARACTERISTICS    
FEATURES OF 20W 40 LUBRICATING OIL    
B.I.S. SPECIFICATION    
INDIAN AUTOMOTIVE LUBRICANT INDUSTRY    
MARKET SURVEY    
INDIAN LUBRICANTS SECTOR    
AUTOMOTIVE LUBRICANTS    
BAZAAR TRADE    
INDUSTRIAL LUBRICANTS    
FOCUS AREAS    
CAPEX AND NEW CAPACITIES    
BRIEF PROFILE OF KEY LUBRICANT PLAYERS (BAZAAR SEGMENT)    
OVERVIEW OF AUTOMOBILE INDUSTRY IN INDIA    
CURRENT TREND OF INDIAN AUTOMOBILE INDUSTRY    
PERFORMANCE OF AUTO INDUSTRY DURING 2015-16    
MAJOR DEVELOPMENTS OF THE INDIAN AUTOMOBILE INDUSTRY
IN INDIA ARE AS FOLLOWS:    
GOVERNMENT INITIATIVES    
SOME OF THE MAJOR INITIATIVES TAKEN BY THE GOVERNMENT
OF INDIA ARE:    
FUTURE TRENDS IN THE AUTOMOBILE INDUSTRY    
DEMONETISATION EFFECT ON AUTO INDUSTRY    
FACTORS DETERMINING THE GROWTH OF THE INDUSTRY    
INDIAN AUTOMOBILE INDUSTRY – CHALLENGES AHEAD    
SPECIFICATION OF BASE OIL SN 150    
BASE OIL SN 150 SPECIFICATIONS    
BASE OIL    
TYPICAL PHYSICAL CHARACTERISTICS    
HIGH PERFORMANCE FOUR STROKE MOTORCYCLE ENGINE OIL    
FEATURES AND BENEFITS    
TYPICAL PROPERTIES    
FUNCTION AND FORMULATION OF LUBRICANTS    
SWOT ANALYSIS OF AUTOMOTIVE LUBRICANT INDUSTRY    
FORMULATION OF LUBRICATING OIL (20W40, GRADE SN TYPE)    
MANUFACTURING PROCESS OF LUBRICATING OIL 20W40 GRADE SN TYPE    
PROCESS FLOW DIAGRAM    
PLANT LAYOUT    
SUPPLIERS OF RAW MATERIALS    
SUPPLIERS OF PLANT AND MACHINERY    
COOLERS/HEAT EXCHANGER    
STORAGE VESSEL (STORAGE TANKS)    
FILTER    
INSTRUMENTATION & PROCESS CONTROL EQUIPMENTS    
TESTING EQUIPMENTS    
PACKAGING MACHINE    


APPENDIX – A:

 1.      COST OF PLANT ECONOMICS      
 2.      LAND & BUILDING                                      
 3.      PLANT AND MACHINERY                                  
 4.      FIXED CAPITAL INVESTMENT                             
 5.      RAW MATERIAL                                         
 6.      SALARY AND WAGES                                     
 7.      UTILITIES AND OVERHEADS                              
 8.      TOTAL WORKING CAPITAL                                
 9.      COST OF PRODUCTION                                   
10.      PROFITABILITY ANALYSIS                               
11.      BREAK EVEN POINT                                     
12.      RESOURCES OF FINANCE                           
13.      INTEREST CHART                                       
14.      DEPRECIATION CHART                                   
15.      CASH FLOW STATEMENT                                   
16.      PROJECTED BALANCE SHEET