HPCL set for Kenya, Vietnam foray

Spreading its wings beyond the Indian subcontinent, Hindustan Petroleum Corporation will be marketing some of its products in Kenya and Vietnam during the current year. The company, at present, has a presence in Nepal, Bangladesh and Sri Lanka.

"While we have already appointed a distributor in Kenya, we are nearing completion of formalities for entering the Vietnam markets," a Hindustan Petroleum executive told Business Standard.

He said it was difficult to give any indication of the market share the company would target as it was testing waters at present. He added that only those products that were in surplus, like naptha and lubricating oils, had a marketing potential.

At present, the company was concentrating on selling lubricating oils under its brand name in foreign countries. "We have the largest share, of nearly 40 per cent, in base oil production in India," he said.

The company is also consolidating the distribution channels it has abroad.

For instance in Bagladesh, where it has captured about 2-3 per cent market share, Hindustan Petroleum plans to partner the appointed distributor in setting up a local manufacturing facility.

"Initially, our contribution will only be in the form of technical know-how. But if the venture is successful, the company may think of expanding the facility by pumping in more money," a company source said.

Hindustan Petroleum is also engaged in direct export of lubricating oils to countries like Nepal, Bangladesh, Malaysia, Sri Lanka and Saudi Arabia.

While it may be ahead of its counterpart Bharat Petroleum in marketing products abroad, it has a long way to go before it catches up with Indian Oil Corporation.

Indian Oil has two wholly owned subsidiaries in Sri Lanka and Mauritius and a regional office at Dubai. Its brand of lubricants ""Servo "" is being marketed in Dubai, Nepal, Bhutan, Kuwait, Malaysia, Bahrain, Indonesia and Kyrgyzstan.