Nine new players were allowed to enter the lubricants industry, as a result of which the total count has grown from 13 to 22. This is a rather unusual move as the market has been in a flat to declining trend over the previous four years, says Muhammad Najam Shamsuddin, Managing Director / Chief Executive Officer at Chevron Lubricants Lanka PLC.
“The company spearheaded the escalation of some of the industry challenges with the authorities, particularly adulteration and counterfeit oils. However, we are still awaiting concrete steps by the regulator to mitigate these threats to the overall industry. The enactment of the required legislative framework empowering the regulator to operate effectively is yet to take place , Shamsuddin, told shareholders in Chevron Lanka Lubricants Annual Report-2021.
Also, while the Ministry of Energy has taken certain initial steps to set up an independent laboratory through the Industrial Technology Institute to test the conformity of lubricants to standards, it is yet to be operationalized to meet the market’s needs, he added.
Whilst the company adapted quickly to the new normal, some external challenges persisted for the industry, including supply chain disruptions due to scarcity of vessels, shortage of containers, and spiraling freight charges, which pushed up production costs in other sectors.
These unprecedented increases resulted in the company passing on multiple price increases to the market, which was followed by most industry players.” Rochna Kaul -Chairperson of Chevron Lubricants said the financial year under review is one of the strongest years from an earnings perspective.