The stability of Bangladesh’s economy in the last 5 years and, coupled with its pro-business climate and improving infrastructure has transformed the manufacturing sector into one of the top destinations for the industrial oil market.
The demand from the industrial machinery and equipment application also accounts for a major market share and is driven by the end-user sectors such as power, manufacturing, logistics, automotive manufacturing, and others.
Along with the growth of the power sector and the textile sector, the untapped manufacturing sectors are the steel, cement, and plastic. Also, the manufacturing of automotive vehicles and motorcycles will create more opportunity in the near future.
With an estimated annual consumption of around 45,000 tonnes in 2018 that is projected to reach the 52,500 marks by 2019.
To understand the key restraints to market quality products in this growing market, we have talked with leading oil brands.
Rajat Chakraborty, assistant general manager, industrial sales of Runner Lube and Energy Limited, said various factors, including the key barriers of this market.
“There is a lot of shortcoming in terms of technical knowledge in the user end. Sometimes, we observed that they chose the wrong application with their machinery, which is ultimately a risky decision for that company,” he said.
He said the small-scale factories face difficulties as it is not operated by that technical person who doesn’t have proper knowledge on oil usage.
Even, sometimes they are not willing to use a high-end quality product to save the production cost.
“Mostly, we found that to save a little amount of money for purchasing the oil, you are playing with the lifespan of your machine,” he added.
“Immediately, you aren’t facing the trouble with your machinery. But in the long run, the lifespan of your highly expensive machinery is decreasing, which is in threat,” he said too.
Process capacity of the local brands’ product matter
For the local manufacturing of the industrial oil segment, our findings say that there are few local blenders in our country those don’t have the proper process capable of manufacturing lubricants.
“Proper manufacturing of the lubricant product requires a continuous process and manner, which are not maintained in the local blending process,” said Mr Rajat.
When you decide on the local brands, that might cause the wrong application with your machinery. As the lack of process and recommended formulation may cause that wrong application, which is a risky decision.
So, for the sake of your machinery, you should rely on the O.E.M product of the trademark brand. In this competitive market, for pricing, we should not compromise with the quality of the product.