Consumer Discretionary

Diesel Exhaust Fluid

<p style="text-align: justify;"><strong>Diesel Exhaust Fluid</strong><strong> </strong>commonly known as DEF and even locally named as Urea in transportation language.&nbsp;</p><p style="text-align: justify;">In Australia, the same fluid is named as AUS 32 and Adblue in European countries.&nbsp;<br /><br />This is something a new type of chemical or lubricants which is now second most consumed item after diesel in Commercial range of vehicles.&nbsp;<br /><br />In India, Post April 2017 when Govt of India implemented BS4 technology with new emission norms by which this chemical came into existence. DEF is a combination of water and technical urea in a gradient of 32.5% Urea is like a liquid which was earlier used 4-5% of 100 liter diesel consumption in BS4 which is now 8-10% in BS6. The liquid is sprayed via a SCR kit used in vehicle which helps to clean harmful exhaust gases passing out into environment.&nbsp;<br /><br />The future industry of this chemical is so huge that we can understand that whatever trucks and buses which got on road post April 2017 needs this for operating the vehicle. Till April 2020 Ashok Leyland which is India's second largest HCV manufacturer was using EGR technology which is exhaust gas recirculation in which this DEF was not needed, but post April 2020 Ashok Leyland also introduced the same into BS6 vehicles.&nbsp;<br /><br />In coming times, the same will be used in LCV, ICV and even in Cars too which will boom this Industry to new levels.&nbsp;<br /><br />Either there are few global players in this stream or Vehicle OEMs are manufacturing this, rest there will be many new entrants who are coming into manufacturing of this chemical or lubricant.&nbsp;<br /><br />A separate Tank has been installed in Commercial vehicles for refilling this and there would be pump setup is coming times like diesel or petrol to buy this at various points. Petroleum companies are also doing tie up with different companies to sell this via their existing network of petrol pumps. At present DEF is coming either into 20/26 liter buckets and even in 200 liter drums which customers is buying either via OEM workshops or from parts retailers. Big fleet owners are even keeping this in stock in 1KL IBCs also to lower down cost of ownership or operating dynamics.&nbsp;</p>
KR Expert - Arpit Nahar

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