Power plants drive lubricant market
The lubricant market has been witnessing steady growth on the back of strong demand from automotive and industrial sectors.
The market is now worth Tk 2,400 crore, which was Tk 1,200 crore five years ago.
Annual domestic consumption now stands at around 100,000 tonnes, with the market growing at almost 3 percent a year, which is on par with India but behind China.
“Lubricant consumption by the industrial sector, especially by power plants, has increased significantly in the last 2-3 years,” said Sanaul Haque, chief executive officer of MJL Bangladesh that markets the Mobil brand of engine oil.
The automotive sector accounts for 70 percent of total lubricant consumption in Bangladesh and the industries the remaining 30 percent, he added.
Mobil is the market leader with its 30 percent share, followed by British Petroleum at 11 percent, French brand Total at 5 percent and Shell, Castrol and Caltex with 2 percent each.
Omera Fuels, a sister concern of MJL Bangladesh, has a 2 percent share as well. The remaining 46 percent share of the market is held by over 70 brands.
“The power sector has driven the growth of the lubricant market in the country for the last few years,” said Mujibur Rahman, general manager of TotalGaz in Bangladesh.
Cement, steel and fertiliser industries also consume a good amount of lubricants, he added.