‘SL’s banking sector suffering from a lack of forex liquidity’ – The Island
By Hiran H. Senewiratne
For the first time, an Indian online wholesale startup for emerging brands and distributors in Sivagangai, Tamil Nadu, will introduce Sri Lankan petrochemicals to the Indian market, said CEO of Vinayagam Associates of Tamil Nadu, T. Murugesan Vinayaga.
“We are now in the process of connecting leading and emerging brands in India to successfully reach and expand their network of customers, resellers and distributors across India. When I met the Deputy High Commissioner of Sri Lanka in Chennai, Dr. D. Venkateshwaran, he asked me to explore the possibility of marketing some of the best Sri Lankan brands in Tamil Nadu and all over India through our “DigiRiver.in”, an e-commerce site. platform, Murugesan told The Island Financial Review.
Murugesan added: “Lubricants, such as engine oils, hydraulic fluids, gear oils, transmission oils, greases and other similar lubricants are used in various applications in the agricultural sector to protect them from the wear caused by continuous use and also in the motor segment and especially for three-wheelers.
“After a visit to Sri Lanka, I discovered that Sri Lanka has a vibrant lubricants market and the products are economical and of high quality.
“The Sri Lankan lubricants market is expected to grow by more than 3% annually after suffering a setback due to the pandemic shutdowns in the country.
“Leading companies, such as Chevron Ceylon Ltd., IOC and Laugfs Holdings Ltd., have assembly plants and blending plants in Sri Lanka that offer products for the automotive and industrial sectors, with manufacturing capabilities. export to other regions.
“More recently, Ideal First Choice (Pvt.) Ltd, a wholly owned subsidiary of the Ideal Group, partnered with Gulf Oil Lubricants, India to bring lubricants to the Sri Lankan market.
“India is one of the leading countries in the world in terms of vehicle production. In 2021, India’s total vehicle production volume was around 22.7 million units, including around 400,000 three-wheelers.
“Despite manufacturing lubricants for these, India still imports around 40% and in Tamil Nadu alone over 25% of lubricants are imported. I plan to take a large share of these exports from Sri Lanka as it would be cheaper for the end user. This is because we could get benefits under several bilateral agreements with Sri Lanka.
“I intend to start imports of lubricants from Sri Lanka to India soon and distribute them all over India through our e-commerce portal. We also have a strong transportation system to support this distribution in all of Sri Lanka and this process will also help Sri Lanka to add a new item to their export basket and earn some much needed dollars for the country.