Energy

<h2 style="text-align: justify;"><span style="font-size: 12pt;">Q1. Could you start by giving us a brief overview of your professional background, particularly focusing on your expertise in the industry?</span></h2><p style="text-align: justify;">I am a seasoned professional with over 25 years of experience in both domestic and international markets, specializing in the petroleum and lubricants industry. I was the Senior Vice President (Lubes &amp; Bitumen) at Lanka IOC, where I oversaw a USD 600 million company. Additionally, I served as the Chief General Manager - Lubes at Indian Oil Corporation Limited, where I managed the All-India Lubricants division.</p><p style="text-align: justify;">My areas of experience include supply chain management, production management, sales and marketing, and international commerce in the Middle East and Southeast Asia. I currently assist companies in navigating market trends, creating strategies, and promoting company expansion as a consultant to the lubrication sector.</p><p style="text-align: justify;">&nbsp;</p><h2 style="text-align: justify;"><span style="font-size: 12pt;">Q2. What are the key growth segments within synthetic and bio-based lubricants (e.g., automotive, industrial machinery, marine, aviation), and how are they projected to evolve between 2025 and 2030?</span></h2><p style="text-align: justify;">We are witnessing the increasing use of pure synthetic lubricants in the PCMO segment. Approximately 2 to 3 percent of the automotive market is based on PAO-based synthetic oils. The market may reach 5% by 2030 (expected). The growth of Synthetic oils in other segments, such as two-wheeler and diesel engine oils, is slow.</p><p style="text-align: justify;">&nbsp;</p><h2 style="text-align: justify;"><span style="font-size: 12pt;">Q3. What percentage of industrial users are switching from conventional to synthetic lubricants, and what are the barriers to full-scale adoption?</span></h2><p style="text-align: justify;">Industrial oils are also limited to 2 to 3 percent, particularly in the gear oil segment, compressor oils, etc. Cost is the major barrier to full-scale adoption. Synthetic oils being approx. 5 times costlier than mineral oils.</p><p style="text-align: justify;">&nbsp;</p><h2 style="text-align: justify;"><span style="font-size: 12pt;">Q4. Which national oil companies are pursuing international expansion aggressively in 2025, and how does their competitive playbook differ from traditional IOCs like BP, Shell, and TotalEnergies?</span></h2><p style="text-align: justify;">Understand BPC is aggressively pursuing global expansion as compared to IOC and HPC. IOC has lube plants in India and Sri Lanka and toll blending in Dubai.</p><p style="text-align: justify;">&nbsp;</p><h2 style="text-align: justify;"><span style="font-size: 12pt;">Q6. Which companies are leading in lubricant innovation, particularly in developing products that meet both performance and environmental standards?</span></h2><p style="text-align: justify;">Mobil, Shell, and Castrol are leaders in the lubricant business with global presence and global approvals.</p><p style="text-align: justify;">&nbsp;</p><h2 style="text-align: justify;"><span style="font-size: 12pt;">Q7. If you were an investor looking at companies within the space, what critical question would you pose to their senior management?</span></h2><p style="text-align: justify;">Turnover, product range, segment-wise OPM, segment-wise sales for the last five years, market share, R&amp;D facilities for product development, OEM approvals, Service backup, Infrastructure, and future expansion plans are some of the questions that need to be probed.</p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;">&nbsp;</p>