After LPG pull-out, Laugfs launches lubricant brand in Bangladesh

Selling off its liquefied petroleum gas (LPG) business to Hong Kong-based Kai Heng Long Global Energy Ltd for $23.39 million a few months ago, Sri Lankan conglomerate Laugfs Group now eyes a fair share in the lucrative lubricant market of Bangladesh.

Laugfs Lubricants Bangladesh, the foreign group's lubricant arm in the country, has launched its lubricant brand at a Dhaka hotel on Monday.

Laugfs Lubricants has already entered a strategic agreement with local lubricant blender Min Oils for blending its lubricant products for the Bangladesh market under the quality control criteria of Laughs, according to Tharaka Mudalige, general manager of operations, Laugfs Lubricants Bangladesh.

"We are reinvesting part of the LPG divestment proceeds in the lubricant business here because of the market size and growth potential" said Dr Niroshan J Pieries, director and CEO of Sri Lankan Laugfs Lubricants Ltd and Laugfs Petroleum (Pvt) Ltd.

Starting with the strategic partnership with Min Oils, Laugfs has a plan to invest more for a joint venture here as the company eyes a fair share of the Bangladesh lubricant market, he added while talking to TBS in the launching event where Sri Lankan High Commissioner in Bangladesh Professor Sudharshan DS Seneviratne was the chief guest.

"Good brands can ask for a better price in the lubricant market, while LPG prices are being fixed by the government," Niroshan J Pieries said regarding Laugfs Group's industry choices in Bangladesh. 

Laugfs, a home-grown lubricant brand of Sri Lanka starting in 2008, has emerged as the second largest lubricants player in its home market, with market leadership in the two-wheeler segment.

It has grown exponentially offering lubricant solutions for every class of motor vehicles and industrial applications, according to a company statement.

The company has dominated its presence in both the local and multinational landscape, utilising cutting edge technology in compliance with international industry standards, gaining the trust of all motorists, it added.

In Bangladesh, Laugfs lubricants would be a good choice because "Laugfs manufactures lubricants that suit the tropical climate experienced in Bangladesh."

The Laugfs Lubricants state-of-the-art laboratory located in Sri Lanka was accredited with the ISO/IEC 17025:2017 certification, for its cutting-edge laboratory by the SL Accreditation Board in collaboration with the Global Accreditation Society.

The Company also holds 'Original Equipment Manufacturer (OEM)' approvals from world-renowned brands such as Volvo, Renault, MAN, and Porsche vehicles, etc. Laugfs Lubricants holds licences from American Petroleum Institute (API), Japanese Automotive Standards Organization (JASO MA) and National Marine Manufacturers Association (NMMA), which defines global standards for motor oils.

Propelled by this entrepreneurial spirit Laugfs went on to become trailblazers in many industries in Sri Lanka.

Currently the group is present in 20 industries and has expanded beyond Sri Lankan borders, establishing a strong presence as a leader and pioneer in the power and energy, terminal, maritime, retail, industrial, services, leisure, and logistics sectors.

Moreover, Laugfs Group owns the largest LPG Transshipment Terminal in South Asia. In its pursuit of innovation, Laugfs explores opportunities to enter into new industries and market segments as it plans its future growth strategies.