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The Sri Lankan unit of Indian Oil Corporation plans to expand export markets and has said it will enter the Malaysian and Indonesian lubricant markets.
“Our growth plans have not been limited to the domestic market,” Lanka Indian Oil Corp. Managing Director Subodh Dakwale said.

LIOC has done a study on entering export markets with its premium lubricants and is currently testing the markets of Indonesia and Malaysia with the appointment of a small number of distributors for Lanka IOC lubricants.

“Plans for exporting lubricants will be unrolled during the year to test the markets of Indonesia and Malaysia,” Dakwale told shareholders in the company’s annual report.

“Although I do not anticipate significant revenue contributions from market development initiatives over the short term, I believe export markets will open up new revenue opportunities over the longer term.”  (Colombo/August 25 2015)

Extracted from: www.shipandbunker.com

Lanka IOC PLC (Lanka IOC), the Sri Lankan subsidiary of India’s largest oil refiner Indian Oil Corporation Ltd, says it is aiming to sell 10,000 mt of MGO and 380 CST by the end of 2015, Platts reports.

The company has already reportedly sold 4,000 mt of both 380 CST and MGO since its Trincomalee bunkering operations began on June 25, and is aiming to increase this to 6,000 mt during its second month of operations.

Lanka IOC is said to have a capacity for 20,000 mt of 380 CST and 6,000 mt of MGO in its Trincomalee storage tanks.

Lanka IOC is currently offering 380 CST product that it says it imports through a tender process from either Singapore, Fujairah, or India.

Both types can be set for delivery within the next one or two weeks, says Lanka IOC.

Last week, it was reported that Lanka IOC had commenced bunkering operations from its Trincomolee oil terminal, which is said to provide additional bunkering options to the vessels operating in Bay of Bengal.

Extracted from: Daily FT

Lanka IOC joined hands with CMA – Sri Lanka as Platinum Sponsor for the Global Management Accounting Summit 2015 to be held on 27-29 July at Cinnamon Lakeside, Colombo.

The Sponsorship Cheque was presented to Prof. Lakshman R. Watawala by Subodh Dakwale.

From left: CMA Consultant L.B. Wattegedare, Lanka IOC Senior VP (Finance) Anuj Jain, Lanka IOC Managing Director Subodh Dakwale, CMA President Prof. Lakshman R. Watawala, CMA VP Basheer Ismail, CMA Council Member H.M. Hennayake Bandara and CMA Council Member Adrian Perera

Adapted from the Island article by Ifham Nizam

Lanka IOC has once again requested the government to either increase fuel prices or give them a tax reduction.

They had separate meetings with Finance Minister Ravi Karunanayake and Power and Energy Minister Patali Champika Ranawaka. Both ministers asked for more time, while appreciating IOC’s role here. Ministry officials told The Island that the government wouldn’t be in a position to take a decision till the energy pricing formula was introduced.  The formula is expected to come into effect after September this year.

Lanka IOC Managing Director, Subodh Dakwale yesterday contacted for comment said discussions were on but nothing had come of them. He said if the present situation continued they would take the matter up with the Lanka IOC Board. Dakwale said that, on their part, they often discussed energy conservation and on how to improve the quality.

Earlier this month, the Ceylon Petroleum Corporation recommended that the Power and Energy Ministry request the Treasury to consider a further tax reduction on fuel imports along with the forthcoming oil pricing formula. However, nothing concrete had taken place in this regard, an official said.

Due to selling fuel below market price in keeping with government policy, Lanka IOC had been suffering losses since the government ordered price reductions in fuel early this year, Dakwale said, adding that tax alone came to between 56 and 58 per cent of the cost of petrol which he called a huge by any means.

Dakwale said they believed the proposed pricing formula had to be discussed along with duty reductions. “We have suggested now that the duty be reduced in a big way as we cannot increase the price of a litre of fuel,” he added.

Lanka IOC is calling upon all trusted lube distributors to join SERVO range of lubricants, the preferred choice of Sri Lankans and one of the largest selling brands in the country.

Download: Servo Lube Distributor Application 

The Chairman of Lanka IOC Plc (LIOC), Makrand Nene says it is of great importance that the Sri Lanka Government evolves a transparent pricing system for fuels which would not only benefit the public but would also pave way for systematic infrastructure development in the energy sector. According to the LIOC management, there remains minimal correlation of local prices to International world market prices, which exposes the industry to an acute risk of incurring significant financial losses due to sudden price fluctuations. Hence, they say there is a need for greater transparency in the formulation of a method to correlate to global prices.

Addressing shareholders at the release of the company’s Annual Report for the year March 31, 2014, the LIOC Chairman Nene said that 2013/2014 had been the most successful financial year to date, as the firm continued to grow in its second decade of operations as the second and only other player in the Sri Lankan petroleum sector next to Ceylon Petroleum Corporation (CEYPETCO).

“With the Ceylon Petroleum Corporation having finally increased their diesel selling price in line with Lanka IOC in February 2013, our retail sales of diesel grew by 41% in quantity and 46% in value this financial year,” Nene announced adding that the company has achieved Rs.81.79 billion in sales, up 9% from Rs.75.11 billion recorded in the previous year.

Lanka IOC Plc has thus recorded a profit after tax of Rs.4.8 billion for the financial year, up from Rs.2.9 billion reported in the corresponding period of the previous year.
Domestic revenue for the year has increased by Rs.11.95 billion, which is a 20.9% growth from the previous year with the largest contribution from diesel sales which increased by 53%. Petrol revenue only grew by 8% but it contributed 40% of the total revenue, financials showed.

Meanwhile, Managing Director Subodh Dakwale said LIOC continued to expand its retail sector in 2013/14, opening ten new outlets in locations where fuel filling stations were most needed, increasing its number of filling stations to 147 and refurbishing a number of existing stations.
“In 2014/15, however we plan to kick start our expansion drive by opening over forty new outlets and refurbishing a further fifty. We plan to spread our footprint across the country in a major way, by increasing our presence in the unrepresented areas of the island nation,” he announced.

LIOC said in the financial year 2013/2014, fuel products had continued to be their highest profit center, garnering 75% of the total profit and accounting for 73% of the total turnover. Sales of petrol grew by 3% in 2013/14 to over 200,000 kiloliters while with price parity finally being reached, diesel sales grew by an incredible 41% to over 222,000 kiloliters.

On the corporate end, LIOC said acquisition of the business during the period under review to supply lubricant products to the Sri Lanka Transport Board can be counted upon as a major achievement.

In the year 2013, although value of total oil imported into Sri Lanka grew up to Rs.182 billion from Rs.157 billion in 2012, the value of refined products imported reduced to Rs.353 billion from Rs.467 billion. Nonetheless, the oil prices remained unchanged within the year and sales of petrol grew by 4% and diesel grew by 2%.

Lanka IOC PLC recently opened their 100th ‘SERVO Shop’ in Mawanella. In 2013, LIOC put this innovative idea forward to further increase its stake in the lubricant market and re-conceptualized its retail channel with a unique new concept to showcase LIOC’s  range of Servo lubricants Sri Lanka.

Starting from left, Kegalle Distributor, Mediwatte; Lubes Executive- Retail, Rasheel Hassen; Lubes Marketing and Planning Senior Vice President, Soumen Ganguly; Lanka Servo Shop Dealer, Najimudeen and Kandy Region Sales Supervisor, Sanjaya are present in this picture.

Lanka IOC PLC had a Rs 2.83 billion net profit for the six months ended 30 September 2013, up from Rs 1.37 billion a year ago, interim financial results filed with the stock exchange showed.

Revenue for the six-month period increased to Rs 39.23 billion, up from
Rs 38.86 billion a year ago.Distribution costs fell to Rs 855.75 million, down from Rs 889.24 million a year ago.

Finance income grew to Rs 100.98 million, down from Rs 51.3 million and finance costs increased to Rs 309.49 million, up from Rs 155.84 million a year ago. Basic earnings-per-share amounted to Rs 5.32, up from Rs 2.58 a year ago

Lanka IOC PLC, unveiled a range of new age lubricants in the presence of a large gathering of customers from the automobile industry, OEM representatives, trade partners and distributors at a colourful ceremony at the ‘Atrium’ of Cinnamon Grand Hotel. Following the launch of Servo Futura range of lubricants consisting of SERVO Futura Synth, SERVO Futura P, SERVO Futura P Plus, and SERVO Futura D, Lanka IOC PLC Managing Director, Subodh Dakwale, said the launch today marks a distinct technological milestone in the 40 year history of brand ‘SERVO’.
Speaking further he said: “SERVO Futura meets the latest international specifications of American Petroleum Institute, Volvo and Mercedes Benz, besides the latest European specifications. With the launch of SERVO Futura Synth Lanka IOC now joins the select brands of premium global lubricants that offer fully synthetic engine oils.”
The top-end offering SERVO Futura Synth is a 100% synthetic premium lubricant that is formulated from performance enhancing Polaphoalefins group-IV base oils and additives that are classified by the American Petroleum Institute (API). SERVO Futura Synth meets the most advanced performance level standards of API SN, with 5W-50 viscometrics ensuring improved mileage and excellent engine performance. The product offers outstanding protection to engine, besides, enhanced engine life through its effective anti-wear capabilities.

SERVO Futura P+, a hybrid synthetic oil meeting the highest specifications of API SN, is another superior engine oil as also are SERVO Futura P and SERVO Futura D – for petrol and diesel engines respectively.
SERVO Futura range of lubricants are a unique combination of products and services that enable users to combine high quality maintenance and reduced operating costs for materials. It is the smart solution for people who want to simplify the maintenance of their car. It caters to an entire range of new generation vehicles and the advantage of Futura is that it clings to the piston and works even when the engine is not running. It shields the engine’s crucial components even when it’s off providing round-the-clock protection for your car’s engine. The superior polar chemistry ensures cleaner engine, provides enhanced engine life and lower maintenance cost.

SERVO with more than a 40% share in the Indian market of approximately 1.4 million metric tonnes served by more than 40 lubricant companies which include all of the world’s leading brands, is fast becoming Sri Lanka’s preferred choice of lubricants ahead of its competitors due to the unmatched quality and range of its products. Today, SERVO is the second largest selling brand in Sri Lanka. Continued availability resulting from a wide distribution network further fortifies its stake in the market as a major player. SERVO’s attention to detail also ensures that venturing into new explorations, collaborations and relationships are consistently carried out in accordance with the company’s vision of providing unrivaled product and service excellence. Recently LIOC has commenced manufacturing group II based diesel engine oils meeting API CH4 specification in its plant in Trincomalee. LIOC has launched the concept of SERVO Shops which are exclusive shops for marketing SERVO range of lubricants.

Speaking on this occasion Dakwale, further said, “Being a market leader, we have a keen eye on the ever changing dynamics of the market. Rising oil prices and the ever-growing demand for environment protection has resulted in the industry seeking energy-efficient and less polluting engines. In turn this has pressurized oil manufacturers into delivering absolutely cutting-edge products.”

He further stated that for more than 40 years SERVO has worked assiduously to earn the trust of man and the respect of machine. Working deep inside the crankcase of high-speed engines where massive heat is generated and friction can cause engines to seize, SERVO has discharged an important responsibility with self-belief and commitment. Today, it symbolizes innovation, technology, reliance and value.

Lanka IOC PLC is the overseas venture of IOC India, a Fortune 500 company. It is the only private oil company other than the state-owned Ceylon Petroleum Corporation (CPC) that operates over 150 retail petrol/diesel stations in Sri Lanka and has a very efficient lube marketing network. Its major facilities include an oil terminal at Trincomalee, Sri Lanka’s largest petroleum storage facility and an 18,000 tonnes per annum capacity lubricant blending plant and state-of-the-art fuels and lubricants testing laboratory at Trincomalee. With a powerful compilation of energy brands in addition to the SERVO brand of lubricants including, ‘XtraPremium Euro III Petrol, XtraMile Diesel’ strengthening its portfolio, IOC India has also paved the way for Lanka IOC to achieve a turnover of Rs 60.4 billion.

Addressing the 10th Annual General Meeting (AGM) of Lanka IOC held at Colombo. Mr.M.Nene Chairman Lanka IOC and Director (Marketing), Indian Oil said, “Lanka IOC will continue to play a key role in energizing and enriching the nation, supporting the endeavor of the Government of Sri Lanka, for developing the nation into a strategically important economic power in the region, under the forward-looking leadership of H.E. President of Sri Lanka.” He also added that Lanka IOC has made remarkable progress in the very first decade of its operations in Si Lanka. World-class fuels are now being offered to our valued customers in Sri Lanka for use in new generation vehicles that are increasingly popular in Sri Lanka.
With reference to the companies financial status, Mr.Nene said,”The turnover of Lanka IOC for the financial year 2011-2012 touched Sri Lanka Rs.60.4 billion while profits stood at Rs.930 million. He signed off thanking the valued shareholders for their support and promising that Lanka IOC would continue to work towards achieving energy security in Sri Lanka while focusing on offering world-class technology, products and services as part of the Company’s customer-oriented growth agenda.