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Shell might develop lubricants for Bajaj’s small car. Shell lubricants country head Donald Anderson said "“We have a global tie-up with Nissan and most probably our lubricants would be used in Nissan-Renault-Bajaj small car. However, it is still very early and it has not been decided whether we are required to develop a new product for the same.”

Bajaj’s small car which is expected to be rolled out in 2011 might carry a price tag of over $2500. It is believed that if a new lubricant is to be developed for Bajaj small car, Shell Technology India, the Bangalore-based research and development facility of Shell, could play a critical role. This facility is considered to be on par with the best research and development (R&D) units of Shell in the US and the Netherlands.

Mr Anderson said "that Nano is all set to expand the Indian small car segment, which would benefit all the lubricant manufacturers directly or indirectly. For the record, Castrol has the exclusive tie-up with Tata Motors for development of lubricant for the Nano, the world’s cheapest car."

Market analysts say "R&D team from Tata Motors, Castrol’s technology centre in the UK and its R&D centre in Wadala have been closely working for the past 18-24 months for the lubricant. In India, Shell is working with Maruti Suzuki, Skoda, Hyundai and Nissan, among others." Mr Anderson said "Shell is also targeting a double-digit growth by next year. The company, which is growing at around 2% a year, commands an 8% share of the market. Last year, it earned revenue of around Rs 1,000 Crore."

For increasing its penetration in the furnished lubricants, the company has introduced a range of products to meet the needs of business to consumer (B2C) and business to business (B2B) customers in India. In addition, Shell offers a range of services.

Industry experts opine that the Indian lubricant market could grow 5% a year. The private players in the segment are aggressively attempting to increase their share in the market, which is largely dominated by their public sector peers.

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