Kluber Lubrication banks on increased awareness for growth

The Freudenberg Group company is aggressively banking on increased consumer awareness about specialty lubricants to grow faster in the Indian market. 

Kluber Lubrication, part of Germany’s Freudenberg Group, is eyeing higher than industry growth in India. This optimism stems from rising consumer awareness about speciality lubricants. It is also working with OEMs and Tier 1 and 2 component suppliers to develop customised products.

Kluber caters to several industries in India including automotive, chemical, metal, mining, railways, oil and gas. The auto industry contributes to nearly 20 percent of its revenue in India with year-on-year growth pegged at around 1-2 percent over the past few years. Now, it is eager to consolidate as well as accelerate growth.

Talking to Autocar Professional, Tamamani Ghosh, head of Automotive Industry India, said: “We expect to grow at a faster pace as companies are looking at new technologies and new methods to increase efficiencies. Most vehicle manufacturers are looking at partners who can provide the leading edge in technology. With our facilities and huge investment in our R&D facilities in Mysore, we are certainly able to deliver that.”

“The automotive industry is very significant to the entire Freudenberg Group. In 2016, Freudenberg generated around 40 percent of its global sales from its activities in the automotive industry – in India about 50 percent” said Dinkar Pande, head of GATEs, Kluber Lubrication India. 

EXPANSIVE PRODUCT PORTFOLIO

Kluber Lubrication has a product portfolio of over 200 speciality products which are designed in-house following detailed feedback from customers. Most of them are developed keeping in mind the requirements of OEMs, Tier 1 and Tier 2 suppliers.

With approximately 250 friction points in a car, which all have different tribological requirements, Kluber says it offers solutions suited to the specific needs of these friction points in areas such as the body and exterior, chassis, interior and powertrain.

Along with passenger vehicles, Kluber also caters to the two-wheeler industry. “We have products for OEMs, suppliers as well as the aftermarket. Lubricants for motorcycle bodies and exterior areas must be highly effective within specified temperature ranges and should be able to withstand salt, water and dust for many years. All our lubricants are developed keeping this in mind,” said Ghosh. 

 
Kluber has a manufacturing facility in Mysore, which caters to market demand in India and Asia Pacific. This facility produces specialty lubricating oils, greases, pastes, aerosols and release agents the across Chem- Trend, OKS and Kluber brands.

Covering 17,000 square metres on a 40,000 square metre site, the expanded facilities in the existing Kluber India plant in Mysore makes the plant one of the biggest in the Kluber Lubrication world. The expansion programme was completed in 2015 with an investment of Rs 135 crore. This unit serves as a major tribology test facility with equipment such as an FZG test rig (gear research centre) and product development.

This expansion is globally significant for Kluber Lubrication to remain very competitive in the Indian market. “We have an R&D facility that also develops products using raw materials available locally and meet the needs of local customers and specific requirements. This helps us to respond faster to the market needs,” says Pande.

Globally, Kluber Lubrication has been manufacturing speciality lubricants for the automotive industry for about 80 years; at present, it has a 12 percent share of the global market. Kluber Lubrication has a global presence and has operations in Europe (Belgium, Germany, Italy, Austria, Turkey) and the US (Mexico, USA, Brazil). In Asia, the company has manufacturing plants in in China, India, Japan and Korea.

India, at present, ranks eighth in the Kluber Lubrication Group’s automotive business. Germany leads, followed by China, Korea, Japan and the US. “Sustainability is at the core of our principles. We launched water-based bonded coatings at Auto Expo 2016. We are working with OEMs on new advancements which we cannot share because of confidentiality agreements,” says Pande. 

 
The company foresees increasing demand from vehicle manufacturers and suppliers for NVH (Noise Vibration and Harshness) solutions. It expects this demand to grow manifold with a host of new passenger vehicle models expected this year and also with rising customer expectations. The company has a host of products that cater to this requirement in interior, body and exterior modules. It also has products that target niche applications in the demanding chassis and powertrain areas. It has developed an NVH kit for OEMs and suppliers; this, the company says, has clicked with industry and is currently used by R&D teams.

PROMISE OF EVS

The company believes the Indian automotive industry is at an evolutionary stage. “There are strong growth opportunities for the industry in India, in the medium term until the year 2020. For our businesses at Kluber Lubrication and chemical specialty, we will see growth that is at least two times faster than the GDP,” says Ghosh.

According to Kluber, at present only one percent of the 200 million vehicles on Indian roads are electric vehicles (EVs). Given the government’s ambitious plan to go all electric by 2030, the company is looking to seize the EV business opportunity. In its bid to drive e-mobility in India, Kluber has already started working with many players in this sector by banking on its global expertise and experience of working with OEMs in this field.

The company believes the key challenge is to educate people about the importance of speciality lubricants and how it reduces the total cost of operations while improving safety and reliability. India being a cost-sensitive market, some suppliers and vehicle manufacturers try to cut corners when it comes to lubricants and customers often have to bear rattles and squeaks in their vehicles. It could also be a safety issue. Therefore, the company is going all out to increase awareness of specialty lubes in the Indian market. 

(This article was first published in Autocar Professional's 1st July 2017 Issue)