Citing the opportunity of a growing market, ExxonMobil announced Friday that it will invest nearly Rs 900 crore (U.S. $110 million) to build a lubricant manufacturing plant in Raigad, India, that will have production capacity of 159,000 kiloliters (143,000 metric tons).
The company expects commercial startup of the plant by the end of 2025. The project, located at the Maharashtra Industrial Development Corporation’s Isambe Industrial Area south of Mumbai, is ExxonMobil’s first greenfield investment in India.
“Maharashtra is amongst India’s largest manufacturing hubs and a natural choice for our lubricant plant, thanks to its attractive investment environment,” Monte Dobson, lead country manager for ExxonMobil affiliates in India, said in a press release.
The plant is intended to help meet growing domestic demand from industrial sectors, including manufacturing, steel, power, mining and construction, along with demand from passenger and commercial vehicle segments.
The company noted that the plant will source a larger part of its base stocks, additives and all packaging locally, boosting the country’s “Make in India” initiative.
“This is a step change towards bolstering our position as one of India’s leading providers of high-performance lubricants,” ExxonMobil Lubricants Pvt. CEO Vipin Rana said. “Manufacturing locally will simplify our supply chain, enabling us to serve the needs of our Indian customers and consumers more readily.”
The plant’s construction is expected to create nearly 1,200 jobs.
The company said its Mobil-branded engine oils, greases and lubricants have been used in India’s automotive and industrial sectors for decades.
ExxonMobil is also a major supplier of liquefied natural gas to India, and its chemical products are widely used in Indian manufacturing.