Quality check on lubricants, an urgent need- Kishu Gomes
By Fernandopulle
The lubricant industry which faced a setback for nearly five years
has recovered and is making a vital contribution to the economy. The
value of the lubricant industry is around Rs. 16 billion.
The industry has revived after a year on year negative growth of
around four to five percent during the past five years. Industry
stakeholders are optimistic of a brighter year for the lubricant market
which is rapidly expanding.
 CEO/MD, Chevron Lubricants Lanka PLC, Kishu Gomes said the lubricant
industry is on a solid growth path and the outlook for 2011 is positive
with potential for further growth.
“Peace, stability and increased economic activities in the North and
the East contributed to the revival of the industry”, Gomes said.
The current size of the lubricant market is around 55 million litres
which is shared by 16 players including Cepetco. Caltex and IOC
manufacture lubricants while the others import finished products.
Industry experts said that 16 players are enough for a small market
and added that there is no space for more entries.The lubricant market
comprises top multinational and regional brands.
Gomes said there is no mechanism to check the quality of lubricants
marketed by players and added that there is an urgent need for a system
to check the standard of products.
“While there are quality standard specifics there is no proper
mechanism to check the quality of lubricants. Players are expected to
prove quality only on paper”, he said.
Sale of adulterated products and importation of lubricants by
unlicensed players are issues affecting the growth of the industry.
Gomes said there are around 12 cases currently pending in court
against adulterators filed by police following raids conducted on
evidence of products used to adulterate lubricants.
Proper regulation of the lubricant market is paramount for the
sustenance of the industry. Safety of engines of automobiles and
industrial machines will be secured with the use of quality lubricants.
While hailing the move by the government to reduce the custom duty on
a litre of petrol from Rs. 15 to Rs. 5 he said he hopes that the right
policy framework will be created for the sustainability and expansion of
the local lubricant manufacturer to enable value creation for the
country.
The Ministry of Finance slashed the custom duty on a litre of petrol
to maintain the current market prices.The move is aimed at reducing the
losses incurred by the Ceylon Petroleum Corporation and the Lanka Indian
Oil Company.
Gomes said it is paramount that the government creates an environment
within which the prices of energy products can be maintained at
reasonable prices for the economic growth of the country.
Chevron Lubricants was ranked 16th among the Top 20 powerful entities
in Sri Lanka by Business Today magazine.
At the ceremony Gomes said the company contributed immensely to value
creation and its local manufacturing offers huge benefits to the Railway
Department, CTB, CEB and large industries.
Chevron Lubricants has contributed Rs. 3 billion to government
coffers by way of taxes and duties. The company has provided over 5000
indirect jobs through its islandwide distribution network, channel
brands and export of lubricants to Bangladesh and the Maldives.
Attired in the national dress among CEOs and Chairmen clad in Western
clothes, Gomes drew the attention of the audience with his impressive
speech that paid glowing tribute to the role of Sri Lankan employees in
developing businesses.
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