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| Sunday, 13 February 2005 |
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Business |  |
| News Business Features Editorial
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Lubricant dealers to market products in CPC outlets by Hiran H. Senewiratne The Ceylon Petroleum Corporation (CPC) has signed agreements with top lubricant dealers to market their products in CPC service stations to ensure a level playing field in the business. The CPC signed a Memoranda of Understanding (MoU) with all leading lubricant dealers in the country following the termination of the agreement with Caltex last November, its Deputy General Manager (Marketing) Ranjith Wickramasinghe said. "We want to give equal opportunity for other players in the lubricant business while providing an opportunity for our consumers to have a wide-brand choice," Wickramasinghe said. Up to last November Caltex products were monopolising CPC service stations but now all leading lubricant brands are freely available, with the signing of agreements, he said. Under these agreements the consumers would have a better choice to purchase top lubricant brands including Shell, BP, Castrol, Mobil and Valvoline, from all CPC service and filling stations, Wickramasinghe said. Since most of the CPC service stations were run by dealers throughout the country CPC has permitted dealers to sell the brands of their choice, he said CPC has nearly 125 service stations in the country. It sold 100 of its stations to the Indian Oil Company two years ago. According to Wickramasinghe the CPC intends to have its own lubricant blending plant in its premises at Sapugaskanda in the near future. Manager - Marketing and Business Development, Raj Abel said that they have signed agreements with lubricant dealers and it would be valid for one year. He said that CPC is planning to have their own lubricant blending plant at the Sapugaskanda oil refinery premises since it has all infrastructure facilities for a plant. CEO/Managing Director Caltex Lubricants Lanka Limited Kishu Gomes said the CPC service stations sold less than 20 per cent of their total volume of the lubricant market. "We are prepared to face any challenge in the future with our excellent brand equity," Gomes said. He said that the company used CPC service stations as one of their distribution channels to market their products, which accounts for less than 20 per cent of the total volume.Sixty per cent of sales come from the retail market. Caltex said that it has more than 90 per cent market share. |
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