Pakistani Supplier Seeks Growth


Hi-Tech Lubricants Ltd., a Pakistani supplier of SK Lubricants Zic brand, is set to expand its share of the domestic market with a new blending plant and initial public offering.

Hassan Tahir, CEO of the Lahore-based firm, said the company will take a two-pronged strategy of both forward and backward integration to achieve growth.

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Hi-Tech holds about7 percent of the countrys totallube market,with more than 16 percent of the passenger car motor oils market, he told Lube Report Asia, noting that the companys sales volumes warranted setting up a plant in Pakistan as opposed to importing more of the Korean companys finished lubricants.

Backward integration involves setting up a blending plant, he continued. Civil works are in process and installation of machinery is expected to be completed by October 2016. The company expects to make a test run on the plant by the first quarter of 2016.

Tahir said the blending facility will also manufacture bottles and caps and have blow-molding capacity of 3,000 metric tons per year. The blending plant will eventually be an integrated unit both producing lubricants and also filling, capping and labelling finished products in high-density polyethylene bottles.

We will still be importing some of our high-end products, but with blending we will be importing the base oil and blending it here, Tahir said.

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