Sri Lanka’s Laugfs Holdings enters lubricant market

Sri Lanka’s diversified Laugfs Holdings has introduced lubricants to the local market, with the goal of capturing 30% market share in two years, top officials said. “As a fully Sri Lankan company, we are proud to enter a market which is already dominated by international players,” W. K. H. Wegapitiya, chairman of Laugfs Lubricants said. “We are confident of commanding around 30% of the market share of the lubricant industry in less than two years,” Wegapitiya said. The chain of supermarkets and petroleum depots owned by Laugfs Holdings will be an advantage over other competitors for the sale of the lubricants, Wegapitiya said. Sri Lanka’s lube market has been dominated by Caltex Lubricants Lanka Limited with nearly 72% market share. Lanka Indian Oil Corporation (LIOC) holds 20% of the market while the balance of 8% is split between Mobil, Valvoline, Shell and BP/Castrol. “There is a significant demand in the industrial sector and it will be an attractive market due to fewer suppliers,” said Shamal Boteju, CEO of Laugfs. (July 21, 2008)