Motor oil, engine oil, or engine lubricant is any one of various substances that consist of base oils enhanced with various additives, particularly antiwear additives, detergents, dispersants, and, for multi-grade oils, viscosity index improvers. Motor oil is used for lubrication of internal combustion engines. The main function of motor oil is to reduce friction and wear on moving parts and to clean the engine from sludge (one of the functions of dispersants) and varnish (detergents). It also neutralizes acids that originate from fuel and from oxidation of the lubricant (detergents), improves sealing of piston rings, and cools the engine by carrying heat away from moving parts.
In addition to the aforementioned basic constituents, almost all lubricating oils contain corrosion and oxidation inhibitors. Motor oil may be composed of only a lubricant base stock in the case of non-detergent oil, or a lubricant base stock plus additives to improve the oil’s detergency, extreme pressure performance, and ability to inhibit corrosion of engine parts.
Motor oils are blended using base oils composed of petroleum-based hydrocarbons, polyalphaolefins (PAO), or their mixtures in various proportions, sometimes with up to 20% by weight of esters for better dissolution of additives. Motor oil is a lubricant used in internal combustion engines, which power cars, motorcycles, lawnmowers, engine-generators, and many other machines. In engines, there are parts which move against each other, and the friction between the parts wastes otherwise useful power by converting kinetic energy into heat.
According to research, the annual lubricant demand pegged at 1.75 lakh tons in the 2018-19 fiscal year, which is expected to reach two lakh tons in the 2019-20 fiscal year.
The size of the local lubricant market stood at about BDT 5,000cr to BDT 6,000cr in 2018-19 fiscal year, as the market grows by 5% to 7% per annum.
Increased economic activities, rising power sector, vibrant transportation and mobility sector and ease of getting finance have boosted lubricant market. This growth is also projected on the back of the country’s economic growth, people’s buying capacity and rising number of on-road vehicles. In 2017-18 fiscal year, the number of registered motorized vehicles increased by 56,133 to 4,68,706. In the fiscal 2016-17, the number of registered motorized vehicles was 4,12,573. According to industry people, there are more than 100 plus lubricant brands in Bangladesh, with imported brands dominating the market. They meet around 70% of the local demand, leaving the rest around 30% to local brands. Multinational competitors include brands such as Mobil, Shed, BP, Castrol, Keltex, Total etc. On the other hand, local competitors include Sino, AP Oil, Oriental Oil, Signa Oil, Sandia etc.
Due to huge market potential and sizeable domestic market, MG Oil Industries Limited (MGOI) has taken initiative to establish a new lube oil blending and grease manufacturing project at South Betiyara, 13 No. Jagannathdighi, Bijaykara-3583, Chouddagram, Cumilla, Bangladesh. Due to sizeable domestic market in recent years, the project will be technically feasible, financially rewarding and economically & commercially viable.
Due to huge potential of the lubricant oil and grease sector of Bangladesh and sizeable market, MG Oil Industries Limited (MGOI) has planned to establish a new lube oil blending and grease manufacturing project which will involve lubricant oil blending (Engine Oil, Gear Oil, Hydraulic Oil and Compressor Oil), grease manufacturing (MP, HT, LT, Chaise, EP & Comples) and fluid (Automatic Tranmission Fluid-ATF/PTF, Tyre sealant & Radiant Coolant).
The daily attainable production capacity will be 27,600 litres of lubricant oil, 13,800 kg of grease and 4,600 litres of fluid.
The total project cost has been estimated BDT 574.79 mln in which fixed costs BDT 274.26 mln including IDCP & variable costs BDT 300.53 mln. As per attainable production capacity, the sales revenue has been projected BDT 1,725.00 mln in the first year.
Total Land size of this project is 57 decimals where Project Shed and Building will be total 30,500 square feet.