VELVEX: Total lubricant solutions for heavy-duty diesel vehicles


Posted November 14, 2019 by velvex123

Velvex is one of the leading business houses in India with diversified interests in lubricants, petroleum derivatives & food products catering to multi-disciplinary industries.

 
Nandan Petrochem Ltd. (NPL) is quite beamish on surging demand for Genuine Lubricants and AdBlue (Diesel Exhaust Fluid) in the heavy duty commercial vehicles and construction equipment segments in India. The company’s Managing Director, Mr. Nandan S. Agrawaal, spoke to MOTORINDIA on the state of affairs and the growth trajectory of the diesel lubricants and AdBlue market in the country.

The Indian automotive lubricants market is projected to touch $9.6 billion by 2022, thanks to the demand-driven business scenario out of the sheer surge in the number of vehicles on road and growing awareness among end-users of right engine oil and other lubricants. Further, almost every OEM is tying up with lubricant manufacturing companies to direct end-users towards genuine oils, thus augmenting demand. An important aspect of the aforementioned growth projection is the upcoming BS-VI emission regime, which is expected to be a big booster for organized lubricant manufacturers in the country.

Mr. Nandan S. Agrawaal, Managing Director, Nandan Petrochem Ltd., (third from left), with his team and Ms. Alisha Abdullah, Motor Racer and Velvex Brand Ambassador

Getting ready for the aspired heyday is NPL, with the expansion and consolidation of product portfolio in the CV and CE segments. The company is one of the largest producers of diesel engine oils, transmission oils, hydraulic oils, coolants, AdBlue and other lubricants in the country, along a wide range of lubricant solutions to passenger cars, motorcycles and other industrial applications. It claims that more than half of the total demand comes from commercial vehicle applications, followed by bikes and scooters, agricultural and CE applications and passenger cars.

“Last fiscal, we grew by almost 35 per cent, with greater prospects unfolding the current period… the run in the first five months of this FY is simply amazing. We look forward to grow three fold in the next 2-3 years”, rejoices Mr. Nandan Agrawaal when asked about the current growth scenario. “The strategic move for us was the addition of AdBlue in our portfolio, whose demand is going to move up exponentially post BS-VI in 2020”, he adds.

How the technology of lubricants is improving, we asked. Mr. Agrawaal replied: “With improving engine technologies and stringent emission regulations, the lubricants are required to improve their quality, with lower viscosities and longer drain life. We at NPL keep abreast of the latest changes in powertrains to offer superior products”.

He added that his company is ready with BS-VI motor oils and is already collaborating with leading OEMs to co-develop next-gen products. The latest one being SML Isuzu, to whom NPL has started supplying diesel engine oil meeting the API CK-4 specification for developing BS-VI engines.

Making high spec oils means higher formulation costs, which pushes up the retail prices of new products. “But higher spec lubricant means longer drain life, which significantly reduces the maintenance cost and TCO, especially for commercial vehicles”, notes the Managing Director.

Asked about the weakening international value of the rupee and unstable oil prices, he agreed that the rupee value and global oil prices are a big dampener for the lubricant industry in India. “More than 70 per cent of the base oil is imported, so insulating ourselves (lubricant manufacturers) from the global instability is hardly possible”, he said.

NPL claims that its VELVEX branded products are rightly priced for the Indian market, although its product quality and manufacturing prowess is superior akin to international standards. “Our product reach and market response so far is quite impressive, we are upbeat in strengthening our distributor and retailer networks across the country, and also in reaching out to mechanics, large commercial fleets, and end-users”, Mr. Nandan Agrawaal said.

NPL committed to lubricant needs of construction equipment
From wheel loaders, excavators to mining dump trucks, all CEs are subjected to harsh working conditions, both in terms of working ambience and activity cycles. The vulnerabilities of extreme cold or heat, moisture and dust impacting engine lubricant performance is very high, which may lead to premature engine failure or abnormal wear and tear, pushing up downtime and maintenance costs for the operators.

Not all lubricants are made the same. Heavy-duty diesel engines, especially the ones that power CEs, require high performance lubricants that can retain its clean and soot-free character to protect the equipment as well as the lubricant itself. Bearing failures are common in CEs, as the greases melt and run out in extreme heat conditions or wash out easily. Greases have to remain extremely tacky and nearly impervious to water washout, to handle heavy loads with ease.

Over the years, NPL has developed its expertise in manufacturing tailor-made motor oils and greases for CEs. Depending on the application, suitable oils are formulated to meet different OEM specific requirements. It has even partnered with Escorts, BEML, ACE, Greaves Cotton and Kirloskar to offer quality genuine oils to the equipment operators.

AdBlue (DEF) market in India: Urgent need for product standardization and quality regulation
NPL BlueSky Automotive, a joint venture between NPL and KRUSE Automotive GmbH of Germany, pioneered the local manufacturing of diesel exhaust fluid meeting the ISO 22241 standards in the country, and is the largest producer in terms of volumes as well. The product is supplied to almost all major OEMs in the country, and has great reach in retail market as well. Recently, the company has tied up with PSU oil marketing companies to make the VELVEX AdBlue available in their retail fuel outlets. NPL also has plans to set up more AdBlue processing plants in the country to meet the emerging demand.

All diesel vehicles that feature the Selective Catalytic Reduction (SCR) technology use the AdBlue solution to offset NOx tailpipe emissions. Under the BS-IV emission norms, only heavy-duty diesels demand SCR systems. However, the upcoming BS-VI regulation would mandate the technology to even light diesel vehicles and passenger cars using diesel engines above 1.8-litre displacement. Thus, the AdBlue demand will considerably go up, resulting in wide prevalence of sub-standard products in the market made by local formulators in the unorganized sector.

“DEF may be a simple aqueous urea solution, but is also very sensitive. Specific grade of Automotive Grade Urea and Deionized Water is used in a manufacturing process that cannot tolerate any exposure to atmosphere, as the product properties will change otherwise”, says Mr. Nandan Agrawaal, while pointing out that standardized AdBlue manufacturing requires laboratory infrastructure and constant checks for each batch, which the unorganized players are bound to miss out.

Bad quality and sub-standard DEF hurts the SCR system in vehicles, while also defeating the very purpose of its usage – the emission reduction. “Premature SCR failures covered under vehicle warranty impacted OEMs significantly in the first year of BS-IV implementation, but now the operators are facing the heat due to contaminated DEF”, notes Mr. Agrawaal, while adding that the price difference between inferior products and genuine AdBlue is negligible while considering the repair costs of SCR Catalytic Converter. There is an urgent need for legislation in this regard, so as to usher in an era of standardization and quality regulation to protect the DEF market and benefits of the stringent vehicular emission norms in the country, he says while warning that any damage control measures post the BS-VI implementation will be too late to prevent this menace.

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Last Updated November 14, 2019