The foundation stone for the new ExxonMobil plant was laid on May 19th.
ExxonMobil had announced the final investment decision in the presence of Deputy Chief Minister Devendra Fadnavis, Industry Minister Uday Samant and senior officials from the state government.
The new, INR 900 crore (US$110 million) plant will have the capability to potentially manufacture 159,000 kiloliters of finished lubricants a year, and is expected to begin operations at the end of 2025.
The plant will be built in one of India’s leading manufacturing hubs, in the Maharashtra Industrial Development Corporation’s Isambe Industrial Area in Raigad, southeast of Mumbai, supporting almost 1,200 new jobs construction of the plant.
“We are proud to deepen our longstanding commitment to India with our first greenfield investment.”
– Monte Dobson, Lead Country Manager for ExxonMobil affiliates in India
The investment is a significant boost to Make in India, a government-led initiative encouraging global companies to manufacture in the country. The program also aims to foster innovation and enhance skills development in the country’s manufacturing sector.
Once operational, the plant will supply lubricants to meet growing demand from industrial sectors such as manufacturing, steel, power, mining and construction, as well as from passenger- and commercial-vehicle segments.
Breaking ground on the new manufacturing plant, near Mumbai, on 19 May.
It will also support local industry, sourcing a larger part of the base stocks and additives as well as all packaging from Indian businesses.
The demand for lubricants is accelerating in India, which is the third largest lubricants market in the world, growing at a compound annual growth rate of 2% thanks to its expanding industrial demand and more vehicles hitting the road.
While the automotive industry continues to dominate India’s lubricant market, rapid industrialization is also driving increased lubricant demand from industries.
This indicates high growth potential in the country’s industrial lubricant market, which was worth around US$1.4 billion in 2020 and is forecast to reach U$1.8 billion by 2027.
Mobil lubricants are being used across India by major industrial companies like Tata Steel, JK Cement, Dalima Cement, Manjushree Technopack, and others to help reduce operational costs, improve productivity and energy efficiency.
ExxonMobil Lubricants Pvt. Ltd. CEO Vipin Rana says that this investment is part of the company’s growing role in advancing India’s growth.
Vipin Rana [left] says the plant will help advance India’s growth.
Recently, as part of an initiative to incorporate recycled plastics in finished lubricants product packaging, the company also launched a plastic pail packaging with 50 percent post-consumer recycled plastic, an industry first in the packaging category.
“We understand the ever-changing needs of our customers, and our initiative to transition to 50% post-consumer recycled plastic pails is just one example of how we are advancing their sustainability aspirations,” Rana says.
