Sri Lankan petroleum company Lanka IOC has been expanding its lubricant outreach to the Association of South East Asian Nations region.
An overseas venture of Indian Oil Corp., Lanka IOC currently only has operations based in Sri Lanka, with established export chains to the Maldives and Nepal. However, the company recently said it has been given the latitude by Indian Oil to expand to ASEAN markets such as Indonesia, Malaysia, Vietnam, the Philippines and Myanmar.
According to Lanka IOC Managing Director Subodh Dakwaleh, One of our strategic pursuits is to develop exports from Sri Lanka, given our international capabilities in the lube business. We see emerging markets in the Mekong Valley and Southeast Asia as prime prospects.
Lanka IOC is one of the top distributors of Servo Lubricants, an Indian Oil brand, including a wide range of automotive, marine and industrial lubricants, both within Sri Lanka and increasingly to the ASEAN region.
The company currently operates 155 petrol sheds and distributes Servo lubricants throughout the island through its distribution network. In 2012, Lanka IOCs annual turnover was U.S. $451 million with sales of lubes increasing by 16 percent (totaling nearly U.S. $100 million) from 2011 to 2012.
Lanka IOC has a lube blending plant of 18,000 metric tons per year capacity in Trincomalee. Servo has become the second largest selling brand in Sri Lanka with about a 16 percent market share. In India, it has a market share of more than 30 percent. Currently the Servo brand also has footprints in more than 20 countries across the globe.
Headquartered in the Sri Lankan capital of Colombo, Lanka IOC carries out retail marketing of petroleum products, bulk supply to industrial customers, and building and operating storage facilities.