Himalayan News Service

Kathmandu, March 31:

Till a few years back, the engine oil market in Nepal was dominated by American and British brands. But now Indian brands, buoyed by cheap prices and incessant marketing drives, have virtually raided the market, capturing half of the total market share. While Indian products are cheaper, engine oil brands from third countries continue to enjoy the advantages of consumer trust, built over decades. As cars and their engines become more sophisticated, the quality requirement in lubricants being used by such engines, is also becoming increasingly stringent. Unlike other segments related to the automobile sector, the domestic engine oil market does not suffer from the evils of the grey market. It is populated by a number of major players from India and third countries. Various types of engine oils, worth more than Rs 700 million, are being sold in the domestic market every month. “Today more than a dozen engine oil brands are dominating the Nepali market. Quality and features of an engine oil are to be considered rather than its price. Synthetic oils are expensive, but they are of a high grade that increases durability and performance of the engine,” said Suraj Kumar Maharjan, managing director at Valvo International Pvt Ltd.

Valvoline is an American product and is blended in India by Valvo-Cumis Ltd. More than 500,000 litres of Valvo products are sold in Nepal annually, making it the third most sold engine oil in Nepal, Maharjan informed. Lower price, compared to brands from third countries, is the major reason for the boom in Indian engine oil brands. Aggressive marketing has lent them a further edge, said Pramod Pundit of Rishav International Pvt Ltd, importer of Unicorn engine oils from Singapore. “Castrol, a world-wide leader in engine oils, used to enjoy a 50 per cent market in Nepal till two years back,” said Amar Jyoti Ranjit, marketing manager at Nepal Overseas Trading Concern, the importers of Castrol lubricants in Nepal.

“Competition increased with the introduction of engine oils from India. But in the premium grade, Castrol is still the market leader,” Ranjit added. Ranjit is also of the opinion that the aggressive marketing, easy availability and cheap price have contributed to the boom in Indian products in Nepal.

“Servo, an Indian product holds 20 per cent market share in engine oils. Its competitive pricing and quality assurance have helped it to become the leading Indian engine oil in Nepal,” said Pranay Hada, marketing manager at Servo division at Hansraj Hulaschand and Company Pvt Ltd. About 80 per cent vehicles plying in Nepal are Indian in origin. Engine oils manufactured in India meet the need of such vehicles. This is another reason for the dominance of Indian engine oils in Nepal, said Hada. Servo has also introduced specific products like Hyundai Genuine Oil and Maruti Genuine Oil, which are doing well in the domestic market, Hada said. Mak is another Indian product, launched by Bharat Petroleum about two years back in Nepal. “The market share of Mak is about 10 per cent, with monthly sale of about 50 kilo litres. Competitive pricing and good quality has helped the product to grow rapidly within a short span of time,” said Rudra Dahal at Lube Department of Sipradi Tradin Pvt Ltd.

The oil factor

Motor oils serve a variety of functions. They are primarily needed to lubricate and cool engines. Engine oils must ensure easy starting, prevent wear and tear of engine parts, even under extreme temperatures. Engine oil that does not flow well in cold temperatures can leave parts of an engine with no protection. Oil that burns off quickly and becomes too fluid can leave little protection in high temperatures. The goal of engine oil is to provide constant full-film lubrication to an engine’s components. Another important function of motor oil is to capture and suspend contaminants and wear particles, preventing premature wear of engines’ internal parts. The other functions of engine oil includes reducing friction, preventing rust and corrosion, keeping engine parts clean, working as cooling agent for vital components, working as a seal filling hills and valleys on ring surfaces and cylinder walls, allowing maximum combustion pressure and providing adequate protection once the engine reaches normal operating temperatures. With all theses actions, engine oil contributes to increasing fuel economy and efficiency of vehicles.