'Valvoline Lubricant - Ensuring durability of engine and minimising maintenance expenses'

Q. Please tell us something about the history of Valvoline lubricant and its business in Pakistan?
Ans: Valvoline, a subsidiary of Ashland group, USA, one of 500 fortune groups, has been developing and marketing high performance engine oils and related chemicals, since 1886 longer than any other engine oils company.
Valvoline's commitment to quality and innovation is reflected from the fact that it offers a full line of premium convential and synthetic engine oils, gear oils, greases, industrial oils and other automotive lubricants specially formulated for all round protection of the engine. Pakistan is a vibrant market for lubricant producers because of high demand of the commodity in the vehicles, generators and industry. The number of existing producers are not meeting the increasing demand of very high quality lubricants of the country, which has paved the way for world's largest lubricant producer to enter the profitable market.
It is a 140 years old company serving more than 100 countries in the world, has a very large share in lubricant market all over the world. The product quality is compatible and dynamic for its consumer, which is reflected by the huge recommendation of leading auto makers to their byers.
Valvoline is a globally recognised product with highest acceptability all over the world, which was reported by international business monitors and journals.
Q. What is your current market share in the lubricants market? How do you plan to increase it to near the level of the bigger competitors?
Ans: We have started conducted meetings with retailers, dealers, workshops and industrial customers, who could be fundamental partners of our business to flourish our products in every nook and corner of the country.
The number of vehicles is increasing in the country whether it is motorcycles, four wheelers or big trucks. Power is also our major sales area after automotive because there are a number of Power Producers that need qualitative lubricant for generating electricity through heavy machinery.
Valvoline was introduced in Pakistan during 1994/95 duly approved by Cummins sales and service pvt ltd as a part of cumminms Generators had successfully been in service since then.
During 2010/11 other high grade Automotive grades were introduced in Pakistan.
It is not out of place mention here that most of these grades are manufactured and packed in one of the Valvoline plants in Singapore from where it is transported to Pakistan the remaining grades are blended and transported from Europe.
All these grades are blended with Group ll base oils whereas almost all locally manufactured lubricants are blended with Group l oil, this give extra mileage which is almost double then locally available brands.
Q. Which is the most significant category of lubes in terms of usage?
Ans: In our country we are still using prior to 1980 technology (approved by API during 80s) of lubricants which has been discontinued by the leading engine manufacturers all over the world. At present the engine manufacture are recommending high quality synthetic lubricants which are expensive than conventional motor oils.
In Diesel engine oils category, since our High Speed diesel oil, contain excessive Sulpher contents, therefore Higher T B N oils are necessary to neutralise acid formation, which results in corrosion and early damage of engines. We are marketing High T B N value Diesel Engine oils which not only protects the engine life but also give extra milage in automobiles and exta hours in Generators. In the end there is almost 50% saving in using Valvoline lubricants and at almost the same price of existing available grades.
We are also importing in near future Synthatic grades, for the customers who are very particular of using latest recommended grades.
As stated above that presently we have very high quality conventional engine oils which are less expensive then synthetic oils and almost at par on prices comparing with locally blended oils and give double the mileage of existing grades available in market.
Q. Lubes are often considered the most lucrative products, in terms of margins - how true is that and how high are the margins?
Ans: Yes, there is lucrative margin in locally blended oils which are mostly manufactured in developing countries like ours, due to ignorance and lack of knowledge of customers of quality and after effect of engines. Since the taxes and duties are on higher side for imported products there is not much margins by importing these high grades in Pakistan.
We have offered our customers our products, keeping low margins and ensure uninterrupted supply of to the end market. Besides, the Valovoline team is arranging road shows, marketing an awareness campaigns in order to penetrate the market at an accelerated pace.
Q. What is the strategy of Valvoline Lubricant with respect to price and quality competitiveness and are your products spread all over the country?
Ans: we have started conducted meetings with retailers and dealers of the lubricant, who could be fundamental partners of our business to flourish our products in every nook and corner of the city. It's a highly efficient product, which gives extra mileage to the cars and commercial generators as compared with different lubricant producers. It ensure the durability of engine of large commercial vehicles and saves their expenses on maintenances and oil changing.
Valvoline is not a new product in the country because it has already been supplied to commercial based power section, therefore, it is already well-known in the Pakistani market.
The management of Valvoline(M/S Petrozol pvt ltd) has established big sales centers in major cities - Karachi, Lahore, Multan, Faisalabad Rawalpindi/Islamabad and Gujranwala. The number of dealers is committed to sell our products on profitable terms that will not only increase our sales significantly but also supply better product to the customers. At present, we manage 200 tonnes sales per month, which has been planned to increase to 4000 tonnes.
Q. Have you made any contracts with bigger industrial players in order to ensure a certain demand level?
Ans: Our total demand of country is around 300,000 tons per year, however, 10 local brands can meet 75 % of the demand whereas rest of the supply is made through import. The demand is not constant but it is increasing by leaps and bounds, therefore, the industry players are cautions to retain their share in the local market.