‘Total’, the French multinational oil company in a tie up with Nawaloka ABC Petroleum (Pvt) Ltd has entered the Sri Lankan lubricant market with a short term target of capturing 10% of the market, a top official of the local agent told the Business Times on the sidelines of a press conference in Colombo on Wednesday. Sri Lanka's lube market dominated by Chevron is now highly contested by at least 15 local and international brands.
The lube sector is now rising after the government cut taxes on vehicle imports in June last year. The company brings down lubricant oil from ‘Total’s Mumbai India blending plant.
Nawaloka ABC Petroleum commenced operations in the local market in the Western province in September last year and have now spread to the Central and Eastern provinces, as well as parts of the Sabaragamuwa province. “It is our intention to cover the rest of the island shortly, providing the local consumer with the ‘right choice in lubricants’ that are both high performance and cost effective,” said General Manager - Nawaloka ABC Petroleum, Sanjay Benjamin.
The company has introduced two product lines under the brands of ‘Total’ and ‘Elf’, he said. “Our target market is the quality conscious motorist with a sense of social responsibility who wishes to contribute towards protecting the environment”.
He revealed that the company is currently creating a healthy competition for quality lubricants in the Western province, Kandy and several other areas. Chevron controls around 80 % of the market, with the balance split between Lanka IOC, Servo, Mobil, Valvoline, British Petroleum/Castrol and Shell.
Addressing the media, Chairman, Nawaloka ABC Petroleum, Jayantha Dharmadasa said that as part of its diversification strategy, the Nawaloka Group had identified an opportunity in the local lubricant market for a superior range of lubricants, offering the consumer value for money; hence the partnership with ‘Total’.