Malaysia’s Hyrax Oil to reach other South Asian markets through Sri Lanka’s CPC
Malaysia based Hyrax Oil Sdn. Bhd, which has commissioned a contract blending for Sri Lanka’s state owned Ceylon Petroleum Corporation (CPC) is reportedly looking at reaching other South Asian markets to use excess capacity.
Hyrax already has customers in Bangladesh it was exporting out of Malaysia, but exporting out of Sri Lanka had advantages Hyrax Group Managing, Director Hazimah Zainuddin has been quoted as saying.
“There are significant tax and logistical benefits,” she has said.
Sri Lanka’s Prime Minister Ranil Wickremesinghe has commissioned Hyrax 72,000 metric tonnes a year blending plant build on a 20-year build operate transfer deal for state owned CPC.
Hazimah has stated that about 40 percent of the output of the plant could be exported.
“The Bangladesh lubricant market is huge. Even if we could get a share less than 1 percent it will be a big volume,” she has noted.
The firm was also looking at India and other South Asian markets where there were preferential trading access, she has added.
Hyrax had already been supplying lubricants for CPC which were being sold under its Ceypetco brand and it was now in fifth place, the local media has reported.
OSL take:
The business plan of Hyrax Oil to reach out to other South Asian markets through its operations in Sri Lanka is indicative of the advantages in setting up operations in the island. As stated by Hyrax, there are significant tax and logistical benefits when reaching out to the South Asian markets through Sri Lanka. Sri Lanka has close trade ties with South Asian countries and enjoys free trade agreements with India and Pakistan. Also, the geographical positioning of Sri Lanka in the Indian Ocean has also added to its advantage. Therefore, foreign businesses/investors looking at doing business in South Asia could explore the opportunities that could be enjoyed by setting up base in Sri Lanka.
| Article Code : | VBS/AT/26062019/Z_3 |