Laugfs lubricants for overseas markets

by Lalin FERNANDOPULLE

[email protected]

Laugfs Holdings which entered the local lubricant market will launch its products in the Maldives, Bangladesh and Pakistan within the next six months.

The company has already begun negotiations with the Maldivian and Bangladesh partners to commence operations this year, Chairman, Laugfs Holdings Ltd, W.K.H. Wegapitiya said.

Laugfs Holdings with the launch of its brands became the first Sri Lankan company to enter the highly competitive local lubricant industry. The company launched the products in Australia on the same day.

He said it is not an easy task to launch products locally and internationally at the same time. A company needs time to study the market conditions before venturing into a new market.

“We have produced the oil to meet local and international standards and the distinct feature of the products will be lion logo on the products”, Wegapitiya said.

He said the local lubricant market had been dominated by multinational companies and added that they were proud to have launched the brands as a truly Sri Lankan company. The company aims to achieve a 5 per cent market share within the first year of operations in the country.

Caltex, Lanka IOC, Mobil, Shell and British Petroleum are some of the key competitors in the local lubricant market. Wegapitiya said the company will initially import oil blended from the Singaporean blender Italsing Petroleum and will set up its blending plant here when the company consolidates its market share.

“The entry into the local market is a big achievement for the company which had to cross many hurdles.

Laugfs Holdings was refused a licence to enter the lubricant market on several occasions.The company applied for a licence in 1998.