Caltex seeks regional exports

Caltex Lubricants, a Chevron company, is banking on regional exports for volume growth, as it faces stiff competition in the domestic market from a local unit of the Indian Oil Corporation. It has started marketing in the Maldives and is planning to start a test marketing drive in Bangladesh. Sri Lanka’s lubricant market size is 45,000 kiloliters a year with an estimated 12% share held by Lanka IOC. The Bangladeshi market is three times the size of the Sri Lankan market. At one time, Caltex had a monopoly in lubricant sales in Sri Lanka. The company is due to commission a blending plant later in the year, which will give it an edge over imported products. Packaged imports are taxed at 28% over the 6% cess on locally blended products. (February 26, 2007)