Sri Lanka IOC expands lubricant export business

Lanka IOC PLC (LIOC), a unit of Indian Oil Corporation, reported exports worth US$118.6 million of SERVO branded lubricants in its annual report. The company said it plans to boost foreign sales further in the current year to Southeast Asian countries by appointing lube distributors in Indonesia, Malaysia, Myanmar and Singapore. Market assessment and viability studies are being made because the company wants to enter these countries in a big way. LIOC is now exporting lubricants to Nepal, Mauritius and Maldives, aside from supplying lubricants to the Sri Lanka Air Force.
The report also indicated that the LIOC brand SERVO has gained a 16% share in the domestic market, becoming the second largest brand. The company reported that sales in March 2012 had risen by 12%. LIOC Chairman Makrand Nene also said 60% of the lubricants are now being made at its Sri Lanka blending plant.
The report clarified that though the firm lost money for a time from petrol and diesel fuel due to state taxes and price controls, its bunkering, lubricant and bitumen businesses were profitable. Bitumen sales volumes rose 167% due to higher demand from road construction. (September 3, 2012)