Asia Pulse
SRI LANKA'S LAUGFS HOLDINGS ENTERS LUBRICANT MARKET
Monday July 21, 03:20 PM
COLOMBO, July 21 Asia Pulse - Sri Lanka's diversified Laugfs Holdings has introduced lubricants to the local market, working capture 30 per cent share in two years, top officials said.
The lubricants were launched through the subsidiary of Laugfs Holdings, Laugfs Lubricants Limited.
"As a fully Sri Lankan company, we are proud to enter a market which is already dominated by international players," W K H Wegapitiya, chairman, Laugfs Lubricants said.
The company, with an initial investment of 225 million rupees (US$2.1 million), has introduced lubricants for both diesel and petrol engines.
"We are confident of commanding around 30 per cent of the market share of the lubricant industry in less than two years," Wegapitiya said.
The chain of supermarkets and petroleum depots owned by Laugfs Holdings will be an advantage over other competitors for the sale of the lubricants, Wegapitiya says.
The company also sells Liquefied Petroleum Gas.
Sri Lanka's lube market has been dominated by Caltex Lubricants Lanka Limited with nearly 72 per cent market share.
Lanka Indian Oil Corporation (LIOC) holds a 20 per cent of market while the balance eight per cent is split between Mobil, Valvoline, Shell and BP/Castrol.
"Entry criteria to the lube market by the authorities were stringent," Wegapitiya says.
The company however has been able to acquire the approval from Mercedes Benz to use its multi-grade oil in Mercedes vehicles.
Laugfs lubes were also approved by the American Petroleum Institute, the apex body for petroleum standards.
The company imports lubricant from a toll blender in Singapore to be packed into containers in Sri Lanka which is cost effective, the company said.
Apart from the automotive sector, the company plans to cater to the demand of the industrial and marine sectors.
"There is a significant demand in the industrial sector and it will be an attractive market due to fewer suppliers," said Shamal Boteju, CEO Laugfs.
The company also hopes to expand overseas to the Maldive islands within the next three months.
Following the expansion to the atolls, Laugfs will focus on South Asian countries such as Bangladesh, Pakistan and Myanmar, Boteju also said.
"We hope to capture three per cent market share in the first six months."
The products Power P40+ and Power D40+ are mono-grade lubricants, also called single-grade that provide a stable viscosity or ability to flow at a given temperature.
The Supreme Petra and Supreme DX are multi-grade oils.
Multi-grade oils are mono-grade lubricants that have been mixed with chemical additives to produce a hybrid with varying viscosity that can react to temperature changes.
(LBO)
Next Article: Euro At 1.5900 as Oil Up, Stocks Down - Another Run At 1.60?
Previous article: Hess says makes second gas discovery off Australia
Top Headlines
Tower ends relationship with ANZ National
Thursday August 7, 03:10 PM - NZPA
From March next year Tower branded general insurance will no longer be sold through ANZ National banks because the insurer said it has been making an underwriting loss on the business. Read More...
Union says state workers not overpaid
Thursday August 7, 03:08 PM - NZPA
The union representing public servants is taking issue with a study that found public servants earn more than private sector workers. Read More...
Employment rebound seen reducing chance of rate cuts
Thursday August 7, 03:08 PM - NZPA
The unemployment rate rose to a two-year high of 3. Read More...
Calculators
Copyright © 2008 Yahoo! All rights reserved.
Yahoo!Xtra: A Yahoo!7/Telecom New Zealand Company.