Chevron Pakistan Lubricants Chairman Muhammad Najam Shamsuddin said the company will invest more than PKR 2 billion (USD 19 million) from 2016 to 2018 to upgrade its infrastructure. The investment will be used to upgrade and expand its lube blending plant in the West Wharf area of Karachi, as well as other facilities across Pakistan. Chevron Pakistan plans to boost its lube blending capacity from 55 million litres to 75 million litres per annum.
“We see high growth prospects in Pakistan,” said Shamsuddin. “Some people thought Chevron would exit the lubricants industry once it divested its fuel business. Chevron isn’t going anywhere. We are scaling up our investments instead,” he added.
Chevron Pakistan Lubricants is an indirect subsidiary of Chevron Corp., which is the world’s fourth largest integrated energy company. Chevron Corp. recently sold its fuel retail and storage business to Total Parco Pakistan.
Chevron Pakistan Lubricants trades under the Caltex brand in Pakistan and markets its lubricants products in the country under the Havoline and Delo brand names.
Chevron Pakistan Lubricants has a market share of about 24%, according to its chairman, with gross profits of about PKR 3 billion (USD 28 million) last year.
In the last 18 months, Chevron Pakistan has been able to establish a chain of 65 oil change facilities across the country. “We plan to have up to 150 such facilities by the end of 2017,” Shamsuddin said.