India White Oil Market Outlook to 2028

India White Oil Market Overview

The India white oil market was valued at USD 1.9 billion, based on the five-year analysis. This growth is driven by increased demand in various industries such as pharmaceuticals, cosmetics, and plastics. White oil's application in these industries is due to its purity, stability, and versatility. The pharmaceutical sector, in particular, has seen a surge in demand for white oil as an excipient in ointments and lotions.

The India white oil market is dominated by several key players who contribute to the market share. These include Savita Oil Technologies Limited, Raj Petro Specialities Pvt Ltd., Hindustan Petroleum Corporation Limited (HPCL), Gandhar Oil Refinery India Ltd. and Bharat Petroleum Corporation Limited (BPCL). These companies have established strong distribution networks and are continuously investing in R&D to improve product quality and expand their application areas.

In 2023, Savita Oil Technologies Limited announced the expansion of their production facility in Maharashtra. This development aims to increase their production capacity by 20%, allowing them to cater to the growing demand for white oil in India. This expansion is expected to be completed by mid-2024 and will position Savita Oil Technologies as a leading supplier in the domestic market.

Maharashtra is the leading state in the India white oil market share in 2023. The state's dominance is attributed to the presence of major white oil manufacturers and well-established distribution channels. Additionally, Maharashtra's advanced industrial infrastructure and strategic location provide easy access to raw materials and export markets, further enhancing its market position.

India White Oil Market Segmentation

By Product Type: The market is segmented by product type into Light Grade White Oil, Heavy Grade White Oil. In 2023, light grade white oil dominated the market share. This dominance is due to its extensive use in the cosmetics and pharmaceutical industries, where purity and lightness are critical. Light grade white oil's non-toxic and non-reactive properties make it ideal for applications in baby oils, lotions, and medicinal ointments, driving its higher demand.

By Application: The white oil market is segmented by application into Pharmaceuticals, Cosmetics and Personal Care and Plastics and Polymers. In 2023, the pharmaceutical segment held a dominant market share. The increasing demand for high-purity white oil as an excipient in pharmaceutical formulations drives this segment's growth.

By Region: The market is segmented by region into North, South, East and West India. In 2023, West India, particularly Maharashtra, dominated the market share. This region's dominance is due to the presence of leading manufacturers, advanced infrastructure, and strategic location for distribution, driven by high industrial activity and significant pharmaceutical manufacturing units.

India White Oil Market Competitive Landscape

Company

Establishment Year

Headquarters

Savita Oil Technologies Limited

1961

Mumbai, Maharashtra

Raj Petro Specialities Pvt Ltd.

1993

Mumbai, Maharashtra

Hindustan Petroleum Corporation Ltd.

1974

Mumbai, Maharashtra

Gandhar Oil Refinery India Ltd.

1992

Mumbai, Maharashtra

Bharat Petroleum Corporation Ltd.

1952

Mumbai, Maharashtra

HPCL: HPCL manufactures white spirit oil, which is a type of white oil used in various applications, including as a solvent in the paint and coatings industry. This product is part of HPCL's broader portfolio of lubricants and specialty products, which includes over 300 grades of lubes and greases. The company has established the HP Green R&D Centre to develop innovative technologies and products that align with environmental goals.

Gandhar Oil Refinery: Gandhar Oil Refinery India Ltd. announced the expansion of their refining capacity in 2024, with an investment of INR 250 crore. The expansion aims to increase their production capacity by 15% and meet the rising demand for white oil in the Indian market. The new facility is expected to be operational by the end of 2024, positioning Gandhar Oil Refinery as one of the leading suppliers of high-quality white oil in India.

India White Oil Industry Analysis

Growth Drivers

Expansion of the Pharmaceutical Sector: The Indian pharmaceutical industry is estimated to be valued at USD 50 billion, with white oil being a critical component in various products such as ointments, creams, and lotions. This growth is driven by the government's focus on making India a global pharmaceutical hub and the rising need for healthcare products due to an increasing population and prevalence of chronic diseases.

Growth in the Plastics and Polymer Industry: The plastics and polymer industry in India has been witnessing robust growth, with a market value of INR 3,500 billion in 2024. White oil is used as a lubricant and release agent in the production of plastics and polymers. The automotive and packaging industries are major consumers of plastics, contributing to the increased demand for white oil.

Technological Advancements in White Oil Production: Several leading companies invested in advanced refining technologies that enhance the purity and stability of white oil. These advancements have enabled manufacturers to cater to the stringent quality requirements of the pharmaceutical and cosmetics industries. The increased investment in R&D and the adoption of innovative production techniques are expected to drive the market forward.

Challenges

Competition from Substitute Products: The market faces competition from substitute products such as mineral oils and synthetic oils. These alternatives are often preferred due to their lower cost and similar functional properties. The availability of these substitutes poses a challenge for white oil manufacturers to differentiate their products and justify the higher costs associated with white oil.

Environmental Concerns and Sustainability Issues: Environmental concerns related to the extraction and refining of crude oil, the primary raw material for white oil, pose significant challenges. The Indian government imposed stricter environmental regulations on oil refineries to curb emissions and reduce environmental impact. Compliance with these regulations requires substantial investment in cleaner technologies and sustainable practices.

Government Initiatives

Circular Economy: The 3rd Rosefield Conference on Circular Economy in Used Oil, held on 20th June 2024 at the Taj Palace in New Delhi, gathered over 270 participants, marking a pivotal step in promoting sustainability under the Extended Producer Responsibility (EPR) framework. This event featured six sessions with more than 25 speakers, providing an in-depth analysis of the future of used oil management.

Industrial Lubricants Development Program: The Industrial Lubricants Development Program, introduced by the government in 2024, aims to promote the production and use of high-quality industrial lubricants, including white oil. The program offers grants and technical assistance to manufacturers for adopting advanced refining technologies and sustainable practices. An allocation of INR 500 crore was made to support this initiative, facilitating the development of superior white oil products and expanding their application areas.

India White Oil Market Future Outlook

The India white oil market is projected to continue its upward route. This growth will be driven by increasing applications in emerging industries, advancements in manufacturing processes, and rising consumer awareness about the benefits of white oil in personal care products. Additionally, the expansion of the pharmaceutical sector in India will further boost the demand for white oil.

Future Trends

Growth in the Personal Care and Cosmetics Industry: The personal care and cosmetics industry in India is projected to grow substantially over the next five years, driven by rising consumer awareness and disposable incomes. The demand for high-purity white oil in skincare and haircare products is expected to increase. Technological advancements in white oil production will further enhance product quality, catering to the stringent requirements of the cosmetics industry.

Expansion of Industrial Applications: The industrial applications of white oil are projected to expand significantly over the next five years, driven by growth in the plastics, polymers, and automotive industries. White oil's role as a lubricant and release agent in these sectors will become increasingly critical. Government initiatives to promote manufacturing and industrial development will further support this trend, creating new opportunities for market growth.
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