Business Times

Expansion for Chevron

Chevron Lubricants is looking to expand operations in Sri Lanka after reporting positive financial results over the past year in spite of challenging circumstances. Managing Director Kishu Gomes told the Business Times this week the company is hoping to capitalize on market growth in the north and east in the post war era. “Over the last three years, there has been an industry decline of 4% to 5% but given the peaceful environment, the global economic recovery and enhanced investor confidence in Sri Lanka, we believe the market decline will end.”

Mr. Gomes attributed the industry decline to the war which took a toll on volumes not only in the north and east but also affected activities in the rest of the country. High import duties on vehicles also affected business. Due to the global recession, some export companies in Sri Lanka were unable to secure average levels of volumes. “The transport sector was not doing that well and our fisheries were restricted,” he said. “Boat owners didn’t have easy access to fishing areas around the country due to restrictions by security forces. Agriculture wasn’t doing that well either and there were natural disasters.

Hopefully, if these things won’t be there during this year, it will create positive growth in the industry.”
In terms of investment, Mr. Gomes said the company is looking towards expanding its distribution network in the north and east and supporting various channel brands such as service stations brands in the rest of the country. The company will also be focusing on consumer awareness programmes and technical seminars to equip customers with the right knowledge to select the correct lubricants.

“The main growth should come from agriculture and fisheries, helped by growth in the construction sector. It’s all about putting the right distribution network in place and supporting the channel partners and retailers through investment for them to be able to capture new volume.”

The company posted a net profit of Rs.375.9 million in 4Q09 compared to Rs.31.5 million for the corresponding period in 2008 due to high gross profit margin enjoyed on the back of low raw material costs.

Top to the page  |  E-mail  |  views[1]
SocialTwist Tell-a-Friend
Other Business Times Articles
IOM to monitor Lankan workers in Libya
Did SriLankan Airlines lose in hedging deals?
Expansion for Chevron
Paint giant Dulux sued by competitor
IMF, EU decisions justified, reveals BT poll
Hayleys into big league with city hotel purchase
LCP seeks Treasury help
Comment - Refreshing side of an annual report
Features - Before cars take over
Features - Squandered opportunity or ‘nation building’ sans Lankan expats?
Insurance regulations to be strengthened
Quiz show to offer over 30 million in prize money
Raigam wants a chemical plant
JKH says committed to protect historic Slave Island Railway Station
NGOs again in focus amidst new proposals to control them
Govt. failed to meet targets set up by IMF, EU: poll
Counter affidavit in hedging cases filed
Sampath wants to be 3rd player in credit cards
Fitch upgrades Singer Finance Lanka Ltd to 'BBB(lka)'
Countrywide tourism infrastructure development drive gets underway
Tourism zooms in February
Pelwatte Sugar doubles factory capacity
Rural sector only way forward for banks
Government puts out ‘Creative Economic Data’ - UNP
Foreigners stay away from Colombo stocks
Royal College to develop Strategic Plan with MTI
Fitch downgrades People's Merchant Bank, assigns negative outlook
Korean Air to resume flights next month
SMS banking from Standard Chartered Bank
One million tourists in two years for Sri Lanka
HSBC to focus on Premier services for future local growth
MAS Intimates Thurulie wins LEED Platinum Green Building certification
Officials hopeful of Colombo Port deal tomorrow
New monitors aim to be number 2 here by end 2010
Browns Group revenue tops Rs 2.6 bln
Tourism industry chiefs troop to Berlin for trade show
Call to revamp plantation industry, social conditions
Stockmarket sees take-off in plantations
Challenges facing the industry
Welfare on estates need to be improved
Plantation sector doing well – officials, firms say


Reproduction of articles permitted when used without any alterations to contents and a link to the source page.
© Copyright 2010 | Wijeya Newspapers Ltd.Colombo. Sri Lanka. All Rights Reserved.| Site best viewed in IE ver 6.0 @ 1024 x 768 resolution