MACHINERY LUBRICATION- INDIA MARCH-APRIL 2020 | Page 36

INDUSTRY NEWS
COVID-19 :
Impact on Lubricant Market
Public sector oil companies like Indian
Oil Corporation Ltd, Balmer Lawrie,
HPCL & BPCL and major private sector
players like Castrol India & Gulf Oil
Lubricants India Ltd. temporarily closed
its lubricant plants (fully or partially) as
the government tries to stop the spread
of the deadly coronavirus in the world’s
third-largest lubricant market. The
partially
operating
plants
are
manufacturing lubricants for Defence &
Essentials services.
The local authorities and various state
governments in India issued directives
around the week of March 2020 to shut
down factories and offices as well as
public transport for a few days to prevent
the spread of the coronavirus, which has
killed more than 47,245 globally as of
2nd April 2020 (10:01 am), according to
the World Health Organization.
India, Asia’s third-largest economy, has
also been affected by the coronavirus,
and the government has taken several
measures to slow the pandemic. The
retail market and institutional sales of
lubricants is down by over 75%, which
may adversely affect the books of most
of the companies.
It is expected that even after the national
lockdown is lifted some time in mid-April
2020, it may take at least a few quarters
for the economy to come on track.
Industry officials feel that the complete
lockdown in the country will put further
strain on businesses, including auto
sector, which is already facing the heat
due to change over from BS IV to BS VI,
which was to be implemented from 1st
April 2020. There is also subdued
demand amid slowdown in the economy
and weak consumer sentiment.
34 | March - April 2020 |
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