Thursday, July 27, 2017

Shell Lubricants targets 15pc market share

The world’s top lubricant supplier hopes to increase its market share in Myanmar to 15 percent in the coming years.

A car races the track at Xtreme Auto Drive, a first-of-its-kind motorsport event in Myanmar on October 10. The event was sponsored by Shell Lubricants, which is looking to increase its market share. Photo: Aung Htay Hlaing / The Myanmar TimesA car races the track at Xtreme Auto Drive, a first-of-its-kind motorsport event in Myanmar on October 10. The event was sponsored by Shell Lubricants, which is looking to increase its market share. Photo: Aung Htay Hlaing / The Myanmar Times

Shell Lubricants entered Myanmar in 2013 and now has a 5pc share in the market, said Troy Chapman, executive director for Southeast Asia lubricants, on October 10.

Shell has over 70 years of experience in the lubricants industry and a presence in over 100 countries.

In Myanmar the company is working with Que Holdings, a joint venture between TA Corporation from Singapore and TA Resources Myanmar, which has offices and warehouses in Yangon and Mandalay, a representative office in Nay Pyi Taw and authorized re-sellers in Kalay in Sagaing Region, Lashio in Shan State, and Myeik and Dawei in Tanintharyi Region.

Que Holdings distributes Shell Lubricants, AeroShell products and Continental Tires.

“Each year, 40 million tonnes of lubricant is used worldwide, with around half of the demand coming from Asia,” said Mr Chapman. “As we have seen in neighbouring countries, Myanmar will increasingly use lubricants.”

Growth in the use of lubricants in Myanmar is between 8pc and 9pc each year, versus 1pc to 2pc worldwide, he said.

“As far as I know, Myanmar is importing 80 million litres each year. We have a 15pc market share in Southeast Asia, and hope to achieve this in Myanmar too. We want one in six people who use lubricants to pick Shell.”

Shell Lubricants are more expensive than local brands, but Mr Chapman said he hopes buyers will seek quality products.

“We set the price according to the quality, and buyers will be satisfied with this,” he said. “There are already many brands in Myanmar, but we will focus on marketing the quality of our products. We will not compete with other brands on price.”

Shell initially imported lubricants for use in heavy machines and industry, before adding products for cars and buses, said Mr Chapman.

The automotive lubricant market in Myanmar has changed significantly over the past few years, according to a market study published last year by consulting firm Solidance, which said the market share of low-grade lubricants is falling – from 90pc before 2010 to 60pc in 2014.