Lube Deal

April 19, 2007 (LBO) – Laugfs Holdings said Thursday it had signed an agreement with the government of Sri Lanka that gave it permission to import and market lubricants in the island. Laugfs group holds 30 percent market share for domestic Liquefied Petroleum Gas and around 55 percent for industrial bulk demand. The local market has been dominated by Caltex Lubricants Lanka Limited with nearly 72 percent market share.

Lanka Indian Oil Corporation (LIOC) holds a 20 percent of market while the balance eight percent is split between Mobil, Valvoline, Shell and BP/Castrol.

Laugfs Holdings, which has interests in Liquefied Petroleum Gas, retailing of petroleum fuels and a chain of supermarkets, hopes to start marketing lubricants by June this year.

We had to wait to get the original equipment manufacturer’s approval that got delayed. The government wants the OEM approval for the lubes we are to import ,” Sarath de Silva, General Manager of Laugfs Holdings, said.

OEM approvals from automobile manufacturers are needed to say the oil is suitable for use in their engines.

The firm had applied only for the import-and-sell license but at the end of this year th