Shell, a global leader in finished lubricants, has expressed its desire to make India one of its top three markets worldwide. Currently, India is among the top five markets for Shell, and the company aims to double its business in the country over the next five years. The Indian lubricant market is projected to grow at a compound annual growth rate (CAGR) of over 5%, with the automotive segment expected to be the fastest-growing category, driven by an increase in new vehicle sales.
Amit Ghugre, the automotive sales and marketing manager of Shell Lubricants India, emphasized the importance of the two-wheeler segment, which currently accounts for around 3% of the company’s volume share in the automotive lubricant space. Shell sees significant growth potential in this segment and plans to focus its marketing efforts on the two-wheeler market in the coming year. While Shell has a limited market share in the two-wheeler segment, it believes that the right product portfolio and increased awareness and distribution will help capture market opportunities.
Shell views India as a crucial market globally and plans to invest significantly in the country. The company adopts a customer-centric approach in product development and aims to address unique needs, improve engine performance and efficiency, and extend engine life. Additionally, Shell is differentiating itself in the business-to-business (B2B) segment by offering integrated solutions that help customers reduce their total cost of ownership. It aims to expand its fluid reliability and digital solutions, including services like used oil testing, fluid management, and on-site lubrication.
Regarding its expansion plans, Shell acknowledges the importance of Tier-II and Tier-III markets in India, considering the digital connectivity in these areas. While the brand is currently underrepresented in these markets, it intends to invest in distribution channels and brand building to leverage the opportunities. Shell recognizes that pricing strategy is crucial in these markets, and although there won’t be different pricing for the same stock-keeping units (SKUs) initially, it aims to offer compelling products at competitive price points. Recently, the company launched the Helix HX6 10W-40 lubricant and a new grease product, targeting Tier-II and Tier-III markets.
Shell’s latest campaign, ‘Sapne Honge Apne’ (Dreams Will Be Ours), focuses on building a mechanic community and engaging with them emotionally. The campaign aims to support mechanics in realizing their dreams and provides a platform for their success. Shell has also established partnerships with industry leaders such as Ferrari and Ducati, leveraging these collaborations for effective advertising and marketing. The brand has been actively engaging in various initiatives, including partnerships with movies like ‘Pathaan’ and participation in events like Formula One racing.
In terms of advertising, Shell recognizes the significance of below-the-line (BTL) channels, including installations, activations, promotions, and branding, in the lubricant space. However, the company is increasing its investments in above-the-line (ATL) advertising, which includes PR, digital platforms, and mainstream media, as part of its post-COVID strategy.
Overall, Shell is committed to strengthening its presence in India, expanding its retail network, and diversifying beyond lubricants to achieve its goal of making India one of its top three markets globally. The company aims to capitalize on the growth opportunities in the Indian lubricant market, particularly in the automotive segment, by focusing on the two-wheeler market, investing in Tier-II and Tier-III markets, and offering competitive products and solutions.
