Shell bets on metallurgy revival in India

Shell oil company in India has high hopes of reviving production in the metals sector to spur growth in the country. "India is the fourth largest metals market. Currently, the country's steel production is 80 million tons per year, and expects to reach 120 million tons by 2020, and Shell would like to be part of this growth story," said the director of marketing for Shell India. Because every ton of metal produced creates a demand for lubricants.

India is currently struggling to become the world's third largest steel producer. The country is on the verge of growth in the metallurgical sector and GDP, and the economies of the United States, Europe and China will slow down, according to Shell analysts. The market for lubricants in the country is estimated at 2.2 million tons per year. Shell has a 15 percent market share of the available market, which excludes contracts with the government or any government players. Shell India primarily operates through direct supply to its customers.

“For the most part, we have decided not to work in the segment that includes materials for the government or public companies. We offer our customers the most advanced technology,” said Vice President of Shell India. Shell considers the Indian market to be strategically important as the country is the third largest lubricants market and the second largest use of two-wheeled vehicles. “We have more than 140 direct distributors nationwide and 150,000 distribution points for lubricants. So going forward, we would like to expand our presence into small cities as well as rural markets, strengthening our operations in large cities,” said he.

Shell India has over 3,000 employees working in the Bangalore R&D Center, Business Services and Finance Center, LNG (Liquefied Natural Gas) joint venture and regasification terminal.