October 11, 2019
Volume 7 Issue 4
Kismat Ventures into Southeast Asia
Energy trading company Kismat Singapore entered the Southeast Asian lubricant market through a toll-blending deal in Malaysia, the company announced this month.
The products of Kismat subsidiary Dynamo Lubricant are toll-blended by D. K. Lubricants Sdn in Malaysia and then distributed in Myanmar, Vietnam, the Philippines, Cambodia, Malaysia and Nepal. Dynamo said it expects its toll blender to have capacity to produce approximately 3,200 metric tons of lubricants for Dynamo during its first year, using retailers and workshops as its main distribution channel.
“There is a lot of upside in the form of opportunities for growth in the automotive and industrial industries that is to be gained in countries like, Cambodia, Myanmar, Vietnam and the more established economies in Southeast Asia such as Thailand, Indonesia, the Philippines and Malaysia,” Dynamo Executive Director Prakash Dhamala said during an interview.
“The move is part of the group’s strategic aim to entrench itself across the Southeast and South Asian markets to capitalize on the rising demand for automotive and industrial oils and lubricants in the regions’ highly sustainable industries and emerging economies,” Dynamo said in a press release issued earlier this month.
In Australia, the company is targeting the farming, mining and automotive sectors.
Dynamo has three automotive engines – one semi-synthetic and two fully synthetics – that are licensed as meeting API specifications. “Our product range is quite wide and are formulated with German and American additives. Although not all our products are API-certified, they will soon be recommended by original equipment manufacturers,” Dhamala added.
Kismat is headquartered in Singapore and trades base oils, rubber process oils, bitumen and fuel oils throughout Asia, the Middle East and Africa. The company began manufacturing lubricants in 1993 in Nepal under the brand name Control Lubricant. In 2008, Kismat started using local toll-blenders in the United Arab Emirates to manufacture Dynamo brand lubricants.
D.K. Lubricants was set up in 2000 in Selangor, western Malaysia as an independent blender of automotive and industrial oils for original equipment manufacturers like Caterpillar.