BPCL to launch Mak in Lanka

In a first step towards entering the global lubricants market, Bharat Petroleum Corporation (BPCL) is planning to launch its Mak brand of lubricants in Sri Lanka.

BPCL controls around 12 per cent of India's lubricants market.

The company, which is awaiting a go ahead from the Sri Lankan government, is likely to sign a licensing agreement "in a few weeks," an official of the company said.

The Sri Lankan government had in January announced it had licensed six firms to market lubricants locally, as part of its efforts to open its market. BPCL is one of the companies, along with Gulf Oil International of the UK, French companies Motul and Total SA, and Sinopec of China.

BPCL is likely to export its lubricants to Sri Lanka from its plant at Taloja near Mumbai. This will be the company's first overseas foray in the fuel and lubricants retailing business.

Indian Oil Corporation (IOC), the largest company in India in terms of sales, is already present in Sri Lanka through its subsidiary Lanka IOC.

Lanka IOC not only retails petroleum products but is also building a lubricant blending plant there that is expected to go onstream by July this year.

IOC, which sells its Servo brand of lubricants there, has around 24 per cent of the total market. Caltex Lanka Lubricants is the leader with a 70 per cent market share.

The BPCL official said that the Sri Lankan government was likely to give a licence for 4-5 years. A part of the license fee would be paid at the time of signing the agreement and the remaining in half-yearly installments during the licence period.