Keeping pace with the automotive sector, the demand for industrial oil is eyeing exponential growth in Bangladesh.
And the oil players have already established their footprints in this segment.
Also, the growing industrial sector is on the way of setting up efficient machinery to be used in the factories.
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.
The growth of the power sector has already highlighted the industrial oil in our country.
With the prospective textile sector, the untapped industries which are yet to explore are steel manufacturing, cement, and the growing plastic.
And in the near future, the manufacturing of automotive vehicles and motorcycles will create the opportunity for the marketer.
To know the current status of it, we tried to find out the key barriers that are facing by the marketer.
With extensive working experience in the industrial arena, Rajat Chakraborty, Assistant General Manager to Runner Lube and Energy Limited, said, “We mostly face the short cummings on technical knowledge among the user end.”
Most of the case, it has been observed that the operators of the production unit of the factories use OEM product until the warranty period of the machinery, which is recommended by the manufacturer. But after that, the operators have a tendency to change the brand to save a little amount of money.
In this regard, Mr Rajat said, “Unfortunately, we found that to save a little amount of money for purchasing the oil, you are playing with the lifespan of your machine.”
“Immediately, you aren’t facing the trouble. But in the long run, the lifespan of your highly expensive machinery is decreasing, which is in threat,” he added.
Currently, industrial oil segment holds the third-largest demand after mineral-based monograde segment and automotive-based multi-grade segment.
With an estimated annual consumption of around 45,000 tonnes in 2018 that is projected to reach the 52,500 marks by 2019.
This industrial sector accounts for around 30% of the total lubricant oil consumption.