Aviation Lubricants

After having carefully examining the consumption data for most of the machines owned or maintained by OSS, we
have identified the below given Lubricant types, being used and consumed on major scale besides other Solvents,
compounds and consumables needed on requirements basis, by our flying machines.

Avg. Annual
Lubricant Type Product Name Qty. Consumption per
Helicopter

Engine Oil BP 2380 / Turbine Oil 500 Quarts 40

Grease Grease 22 Kgs 4
Grease Grease 33 Kgs 4
Grease Grease 64 Kgs 4
Hydraulic Fluid FH 2 / Aeroshell Fluid 31 Gallon 24
Considering this to be a uniform consumption pattern, an operator happens to spend around 2.5 lacs per
annum for Aviation Lubricants per Flying Machine.

Avg. Annual
Lubricant Current
Product Name Qty. Consumption / Annual Cost
Type Market Price
Helicopter
Turbine Oil BP 2380 / Turbine Oil 500 Quarts 40 1239 49560
Grease Grease 22 Kgs 4 4602 18408
Grease Grease 33 Kgs 4 4602 18408
Grease Grease 64 Kgs 4 4600 18400
Hydraulic Fluid FH 2 / Aeroshell Fluid 31 Gallon 24 5798 139152

Total Annual Lubricants cost (1 Machines) 243928

Indian Aviation Industry has around 200 Rotor Machines- Private and NSOP, With this being taken as our
target customer audience to begin with, we are looking at a Revenue Potential of INR 5 Cr. Per annum.
 Aviation Lubricants
With entering into a strategic partnerships with Bird and Other suppliers or with direct sourcing of
Lubricants from international market, we can substantially bring down our purchase cost as is depicted
in the below given table:

Avg. Annual
Lubricant Discounted Saving per
Product Name Qty. Consumption / Market Price
Type Price Annum
Helicopter
BP 2380 / Turbine Oil
Turbine Oil 500 Quarts 40 1239 1000 9560
Grease Grease 22 Kgs 4 4602 2300 9208
Grease Grease 33 Kgs 4 4602 2200 9608
Grease Grease 64 Kgs 4 4600 2650 7800
Hydraulic FH 2 / Aeroshell Fluid
Fluid 31 Gallon 24 5798 4100 40752
76928
These figures put into perspective, the kind of margins (30%), Aviation Lubricants sector is getting
around by and it pegs the margin potential at INR 1.5 Cr. Annually. – Only for Rotor Crafts
Segmentation.
Indian Aviation Industry Size: Lubricants –

GA Rotor Wings
Indian Aviation Industry has around 200 Rotor Machines- Private and NSOP, With this being taken as
our target customer audience to begin with, we are looking at a Revenue Potential of INR 5 Cr. Per
annum.

GA Fixed Wings
In General Aviation, India has a fleet strength of around 343 Aircrafts (Turbo and Jet Engines). Putting
it all together, GA Fixed Wings Fleet is consumer to Engine Lubricants and Hydraulic Fluids to the tune
of INR 35 Cr. per annum.

Commercial Airlines
Considering a relative proportional consumption in Commercial airline fleet of 690 aircrafts flying in
Indian Skies, Engine Lubricants and Hydraulic Fluids stares at a figure of around 100 Cr. Per annum.

Industry Size: 140-150 Cr. an annum

 Lubricants Consumption – Rotor Crafts
Based on the previous data, we come to understand that out of the total Lubricants consumption, 50 % of
the total consumables used are for the Engine Oil, which makes us focus more upon this particular product
type along with Hydraulic Fluid and Greases.
Major Engine Oil Suppliers:
Others
7% ExxonMobil
Shell
British Petroleum
Hydraulic Engine
Fluid Oil
Total
27% 48% Eastman

India’s air operators majorly consume

Engine Oil from ExxonMobil,
Shell and British Petroleum.

Customer-Wise Segmentation:

Fixed Wings: ExxonMobil

Grease Rotor Crafts: BP & Shell
18%
 Revenue Projection & Investment
With only 40 Machines mandate comprising of fleets of OSS, Heligo & Maintenance Customers
(including their fixed wings) , which we can look at currently, we can expect the below given turn out:

Revenue Target
40 Machines 1 Crore
Discount percentage Offered to Customer (10%) 10 Lacs
Profit Margin Retained (20%) 20 Lacs

Going forward, we can target another approx. 340 Fixed Wings machines, flying with in India.

Procurements and Initial Investment:

To start with, we will be procuring different Products from the below given Entities:

Shell Products (Grease, Engine oil & Hydraulic Fluids): Bird Group

Investment:
Initial Inventory for 20 Helicopters and 50% of the annual consumption requires us to put in
approximately 18-20 Lacs for initial investment.
Aviation Lubricants…
Challenges:
 Different operators have been using different products for the same type. e.g. Engine Oil
(Part Number 2380) being used by a particular operator could be of British Petroleum
whereas the other operator may be using Engine Oil of AeroShell or Turbo. It may be a
difficult task to convince the operators to use our product against the one, they have
already been using.

 Shelf Life: For the Product offering, identified, Shelf life is Three Years or more. We can
procure and sell it at regular intervals as and when demand arises. Limited Shelf Life may
appear to be a challenge in the initial months, therefore we intend to plan inventory
procurement only for 50% requirement of half of the target fleet size.
Aviation Lubricants…
Strengths:

 OSS, with its Sister Concern Heligo Charters, may attend to the Lubricants requirements
of 15 helicopters immediately.

 OSS, being an MRO, can easily attempt to offer its product price list to its existing MRO
Customers for their Lubricants requirements and can go on to add Helicopters and Fixed
Wing Fleet of around 20-25 more, taking the total tally to around 40+ Helicopters.

 OSS, being an reputed established company for more than One and half decade can use
its credibility to offer our target customers an ease of procurement and inventory solutions.

 We can offer our clients the discounted prices and offer them to block the inventory at our
warehouse storage without them having to maintain the storage space.

 Also we can offer them 50% advance payment option to block the inventory and remaining
50% when the product is finally delivered.