6. THE 5th ASIAN TIGER
“Asian Tigers” – a title that marks the high growth economies of Asia. Singapore, South Korea,
Taiwan, and Hong Kong are the four Asian Tigers who have come to be known as the Asian Tigers
due to their incredible high growth rates between the early 1960s and 1990s.
The 4 countries managed to maintain an exceptionally steady GDP growth rate of over 7% or more
during their rise.
In the last five years, Bangladesh has been able to maintain a GDP growth rate of over 7%, reaching
an all-time high of 8.2% in 2019.
Obviously, Bangladesh took a hit in its growth rate in 2020 due to the pandemic. But according
to ADB (Asian Development Bank), Bangladesh is projected to have a quick recovery in 2021
reaching 6.8% and eventually going over 7% again in 2022. Its growth rate is also expected to
stay steady at over 7% from there.
SOURCE: WEBSITE – disruptglobal.com
8. Economic
indicators for
Bangladesh
Bangladesh’s GDP growth is
expected at 6.9% in 2022 and
7.1% in 2023 – ADO 2022
Bangladesh’s inflation rates
forecasted at 6.0% in 2022 and
5.9% in 2023 – ADO 2022
Per capita GDP growth for
Bangladesh is expected at
5.8% in 2022 and 6.0% in 2023
– ADB Report
11. Socio Economic Development of Bangladesh with opportunity of
Lubricant Business in next 10 years.
Lot of mega infrastructures, industrializations, urbanizations are
under progress which will be completed by 2030.
Infrastructure developments and logistics in next 10 years resulting
to the rapid growth of automotive sector in the country.
Building of 100 economic zones in different locations of the country
by 2030.
SOCIO ECONOMIC DEVELOPMENT
FACTORS OF BANGLADESH
12. Annual registration of automobile vehicles - 4 times increase in last
10 years.
The number of automotive vehicles is expected to be 25 mln by
2030. So the consumption of lube oil for automotive will be more
than 5 times of present.
As because of development economic growth and consumption power,
the market size of lubricant is expected to grow up by 12%-15% annually
SOCIO ECONOMIC DEVELOPMENT
FACTORS continues…
14. Industry Overview
120,000
Tonnes Market yearly
biggest Segment
2%
19%
26%
Heavy taxation
Traffic
Service industry
New Roads &
highways
Favorable Tax
structure
Local
manufacturing
However MCO segment is on a
tremendous growth trend for the
last 5 Years
Source NBR, BRTA
YoY Growth
2015-2020
HDDO
44%
Industri
al
40%
PCO
5%
MCO
11%
Major segment
15. THE STRUCTURE OF
ORGANIZED LUBE
MARKET
Source: Websites & Industry Expert
• 120,000 METRIC TONNES (ORGANIZED SECT)
• BDT. 35,000 mln, Around US$400 mln
• CAGR 3%
16. LUBRICANT MARKET (Organized /Channel
sectors)
Top 4 Brands are Contributing 53% of Total Lube Market
Annual Market Size & Share
Mobil,
21%
BP, 12%
Total, 11%
Shell, 9%
Castrol,
3%
Caltex, 3%
Omera,
1%
Others,
40%
Lubricant Market Share %
BRANDS VOL IN MT VOL in KL
Mobil 25,200 28,224
BP 14,400 16,128
Total 13,200 14,784
Shell 10,200 11,424
Castrol 3,360 3,763
Caltex 3,600 4,032
Omera 1,680 1,882
Others 48,360 54,163
TOTAL 120,000 134,400
17. LUBRICANT MARKET (all sectors)
Annual Market Size & Share
BRANDS VOL IN MT VOL in KL
Mobil 25,200 28,224
BP 14,400 16,128
Total 13,200 14,784
Shell 10,200 11,424
Castrol 3,360 3,763
Caltex 3,600 4,032
Omera 1,680 1,882
Others 48,360 54,163
TOTAL 120,000 134,400
Sectors Vol in MT Vol KILO Ltr
Not Included 45,032 50,436
Organized/Channel 120,000 134,400
TOTAL 165,032 184,836
Annual Market Size
*Local & Individual Sourcing
*NOT INCLUDED VOL IN MT KILO LITERS
RECYCLE 23,680.80 26,522.50
SHIP BREAKING 9,472.32 10,609.00
SPECIALTY 4,736.16 5,304.50
GREY MARKET 7,142.86 8,000.00
TOTAL 45,032.14 50,436.00
18. SEGMENTATION TO TOTAL VOLUME
PRODUCT SEGMENT %
15W-40 DIESEL ENGINE OIL 10%
20W-50 MULTIFUNCTIONAL 17%
MONOGRADE 40/50 (CC, CD) 21%
GAS ENGINE OIL 10%
MULTI GRADE PCMO
SL/SN/SM 9%
MOTORCYCLE OIL 11%
SPECIAL PRODUCT ATF, BFC,
GEAR OIL, OTHERS 10%
PP HFO 11%
HEAT TRANSFER OIL 1%
COMPRESSOR OIL 1%
TOTAL 100% TOTAL LUBE MARKET SIZE 120,000 MT
LOB (LINE OF
BUSINESS)
CONSUMPTION
%
AUTOMOTIVE (AL) 50%
INDUSTRIAL (IL) 41%
AGRICULTURE 6%
OTHERS 3%
19. MARKET SEGMETATION
Product Type
1 Engine Oil
2 Transmission and Hydraulic Fluid
3 Metalworking Fluid
4 General Industrial Oil
5 Gear Oil
6 Grease
7 Other Product Types
End-user Industry
1 Power Generation
2 Automotive and Other Transportation
3 Heavy Equipment
4 Food and Beverage
5 Metallurgy and Metalworking
6 Other End-user Industries
28. INDUSTRIALIZATION:
• Bangladesh economy is growing based on industrialization i.e. RMG & Textile,
Pharmaceuticals, Automobiles, Agriculture, Steel Rerolling, IT, Leather, Food & Beverage,
Electronics etc.
• Last 10 years the rapid growth of industrialization is remarkable.
• Lubricant oil market size for industries has double in last 5 years due to establishment of
Industrial Infrastructures, Mega Infrastructure, Power plant etc across the country.
• The demand for industrial oil will continue to raise at least for the next 15 years.
• Industrial lube oil is expected to take over 35% of the overall demand in next 10 years.
• On the other hand, Bangladesh agricultural lube market is eyeing growth. This market is
expected to growth at a significant annual growth rate at 12 -15 % between the period of
2018 to 2023.
29. AUTOMOBILES:
• As per BRTA (Bangladesh Road Transport Authority) record on June 2022 total registered
vehicles are 5,305,936.
• Few number of automobile manufacturing industries stablished in BD in last 10 years
(Rangs Automobiles, RUNNER Automobiles, HONDA, Mitsubishi in collaboration with the
government in 1984, Proton, Hyundai CKD, Mahindra, Walton etc.)
INDUSTRIALS:
• Last 5 years industrialization growth was 22% (Heavy & Lite Industry).
• As per BEPZA: 55 Govt. and 11 Private economic Zone established in BD now, where local
and foreign lite and heavy manufacturing industries are growing up.
URBANIZATIONS:
• In 1996 when current govt. took the power have taken a long term strategy to develop the
living status of the country people through urbanization. Last 20 years the urbanization
development in several areas of BD was staring. Because of that the consumption of lube
oil for transformer, generators etc have been increased.
30. 10 MEGA Projects
1. PADMA MP BRIDGE
2. DHAKA METRO RAIL
3. PADMA RAIL LINK
4. MATARBARI DEEP SEA PORT
5. HAZRAT SHAHJALAL INT’L AIRPORT-
Terminal-3
6. DHAKA ELEVATED EXPRESS WAY
7. ROOPPUR NUCLEAR POWER PLANT
($11,895 mln)
8. DHAKA TO CHATTOGRAM EXPRESS
RAILWAY
9. KARNAPHULI TUNNEL
10. BANGABANDHU RAILWAY BRIDGE PROJECT
($1,766 mln)
31. 10 MEGA Projects
1. PADMA MP BRIDGE ($3,178 mln) completed
2. DHAKA METRO RAIL ($2,314 mln)
3. PADMA RAIL LINK ($4,131 mln)
4. MATARBARI DEEP SEA PORT ($1,871 mln)
5. HAZRAT SHAHJALAL INT’L AIRPORT-
Terminal-3 ($2,242 mln)
6. DHAKA ELEVATED EXPRESS WAY ($941 mln)
7. ROOPPUR NUCLEAR POWER PLANT
($11,895 mln)
8. DHAKA TO CHATTOGRAM EXPRESS
RAILWAY ($10,184 mln)
9. KARNAPHULI TUNNEL ($1,092 mln)
10. BANGABANDHU RAILWAY BRIDGE PROJECT
($1,766 mln)
34. REAL STATE:
The urbanization development with the living standard of country people has been
increased
As per the status of the Ministry of Housing & Public Works of BD, 35 % peoples are living in
divisional areas where living standard is high.
20 % peoples are living in different district areas whose living standards are good enough
and rest are living in rural areas whose living standards are standard/sub-standards/poor.
In Bangladesh number of real state companies having a great role in urbanization where
mega infrastructures are building for living of urban people.
So in this sector the lube consumption for transformer, generators and other electrical
equipment are increasing.
36. BRTA REGISTERED VEHICLE – up to JUNE 2022
Source: BRTA, JUNE 2022
Type of Vehicles Grand Total %
Auto Rickshaw 309,004 5.82%
Bus 50,688 0.96%
Jeep(Hard/Soft) 78,089 1.47%
Microbus 112,357 2.12%
Motor Cycle 3,753,138 70.73%
Pick Up (Double/Single Cabin) 149,591 2.82%
Private Passenger Car 391,393 7.38%
Truck 146,995 2.77%
Others 314,681 5.93%
TOTAL 5,305,936 100%
Auto Rickshaw,
5.82%
Bus, 0.96%
Jeep(Hard/Sof
t), 1.47%
Microbus,
2.12%
Motor Cycle,
70.73%
Pick Up
(Double/Single
Cabin), 2.82%
Private
Passenger Car,
7.38%
Truck, 2.77%
Others, 5.93%
%
BRTA (BANGLADESH ROAD TRANSPORT AUTHORITY)
– JUNE 2022
37. Comparison of MOTORCYCLE to all vehicles
Source: Website & BRTA, JUNE 2022
Motor Cycle &
Other Vehicle
DHAKA BANGLADESH
Motor Cycle 961,221 51% 3,753,138 71%
Others 916,653 49% 1,552,798 29%
TOTAL 1,877,874 100% 5,305,936 100%
Vehicles against
Total Universe
DHAKA BANGLADESH
Motor Cycle 961,221 26% 3,753,138 100%
Others 916,653 59% 1,552,798 100%
TOTAL 1,877,874 35% 5,305,936 100%
100%
26%
100%
59%
71%
29%
Bangladesh
51%
49%
Dhaka
41. Motorcycle Brands, Market Share &
Recommended SAE Grades
BRAND OF
MOTORCYCLE IN BD
MS
MC UNIVERSE
Recommended SAE Grades
10W-30 10W-40 20W-40 20W-50
Bajaj 31.00% 1,550,000 20W-50
Honda 15.00% 750,000 10W-30
TVS 17.00% 850,000 10W-30
Yamaha 4.50% 225,000 10W-40
Hero 12.00% 600,000 10W-30
Runner 5.00% 250,000 20W-40
Suzuki 5.00% 250,000 10W-40
Keeway 2.00% 100,000 10W-40 20W-40
Mahindra 2.00% 100,000 15W-40
Others 6.50% 325,000 20W-50
Total 100.00% 5,000,000 4 Major grades
Data source: Opinion Leaders / Industry Experts
42. The Market of Motorcycle
Lubricant
MONTHLY DEMAND: 1.15 mln LTRs
ANNUAL DEMAND: 14 mln LTRs
SUPPLY FROM 5 MAJOR BRANDS:
8.1 mln LTRs (55%)
Leader’s Volume: 4.2 mln ltrs (28%)
43. NEXT TEN YEARS LUBE OIL DEMAND
By 2030 Annual Lube Consumption Will Be 300,000 Tonnes (Appx)
Total Market Size Will Be BDT.170 bln & USD 1.5 bln In Connection With
Annual Growth Rate Of 12% – 15%.
Total coverage of the lube oil consumption will be 35% in Industrial &
Others and 65% in Automobiles.
So we have the real time opportunity to start up the business in this sector.
45. FOR IMPORTS OF FINISHED GOODS H.S. CODES 2710.19.31 FOR IMPORTS OF RM FOR LOCAL BLEND
GLOBAL TAXES 100,000.00 2710.19.89 GLOBAL TAXES 100,000.00
TAX CODE TAX DESCRIPTION TAX VALUE TAX CODE TAX VALUE
CV VAT ON C&F COMMISSION 57.19 0.0572% CV 57.19
DF DOCUMENT PROCESSING FEE 30.00 0.0004% DF 30.00
ITC INCOME TAX ON C&F COMMISSION 38.12 0.0381% ITC 38.12
FP FINES/PENALTIES - 0.0000% FP -
CSF CONTAINER SCANNING FEE 10.83 0.0108% CSF 10.83
TOTAL GLOBAL TAXES 136.14 0.1066% TOTAL GLOBAL TAXES 136.14
ITEM TAXES ITEM TAXES
TAX CODE TAX DESCRIPTION TAX BASE RATE AMOUNT TAX CODE TAX BASE RATE AMOUNT
CD CUSTOMS DUTY 100,000.00 15% 15,000.00 CD 100,000.00 5% 5,000.00
RD REGULATORY DUTY 100,000.00 5% 5,000.00 RD 100,000.00 0% -
SD SUPPLEMENTARY DUTY 120,000.00 0% - SD 105,000.00 0% -
VAT VALUE ADDED TAX 120,000.00 15% 18,000.00 VAT 105,000.00 15% 15,750.00
AIT ADVANCE INCOME TAX 100,000.00 5% 5,000.00 AIT 100,000.00 5% 5,000.00
AT ADVANCE TAX 120,000.00 5% 6,000.00 AT 105,000.00 3% 3,150.00
ATV ADVANCE TRADE VAT 0% - ATV 0% -
TOTAL ITEM TAXES 49% 49,000.00 TOTAL ITEM TAXES 29% 28,900.00
TOTAL GLOBAL TAXES 136.14 TOTAL GLOBAL TAXES 136.14
TOTAL ASSESSED AMOUNT FOR DECLARATION 49,136.14 TOTAL ASSESSED AMOUNT FOR DECLARATION 29,036.14
49.14% 29.04%
GOVT. TARIFF LOCAL BLEND vs IMPORTED FG
46. COMPANY TYPES WITH SOURCING MATRIX
COMPANIES &
SOURCING
IMPORTED
FG
LOCAL
BLEND
TOTAL
NATIONAL /
LOCAL
COMPANIES
20% 19% 39%
MNCs (Multi-
National
Companies)
37% 24% 61%
TOTAL 57% 43% 100%
19%
20%
24%
37%
47. A CASE STUDY ON
THE MOTORCYCLE SEGMENT
THE FASTEST GROWING SECTOR
48. Sales Volume (in Units/M) & Share of MC
Data source: Opinion Leaders / Industry Experts
BRANDS UNITS/M
BAJAJ 20,000
TVS 13,000
HERO 9,000
HONDA 6,000
SUZUKI 4,000
YAMAHA 2,000
RUNNER 600
OTHERS 400
TOTAL 54,600
BAJAJ, 37%
TVS, 24%
HERO, 16%
HONDA, 11%
SUZUKI, 7%
YAMAHA, 4% RUNNER, 1%
OTHERS, 1%
53. STARTING WITH THE MARKETING OF STANDARD & ECONOMY
SEGMENT, THEN GRADUALLY PLACE THE PREMIUM ONES
SPECIAL FOCUS ON MCO SEGMENT (MOSTLY ORGANIZED SECTOR)
DUE TO HIGH GROWTH
INDUSTRIAL PRODUCTS (ESPECIALLY RELATED TO RMG SECTORS)
AUTOMOTIVE SECTOR (FOCUSING ON FLEET SOLUTION)
PRODUCT SELECTION & POSITIONING
54. STRATEGIES
Strong Strategic Tie-up with the Principal
Strong Foot-Print with Dedicated S&M Team
Strategic Coverage through right Manpower Deployment at Right Place
Strategic Tie-up with Local/Domestic OEM/EB
Creating Consumer Awareness
Different Engagement Programs
Flagship Engagement Programs
Engagement with the Master Mechanics
Different Riders’ Group Engagement
Motorcycle (MC) Free Service Campaigns
Digital Marketing Campaigns
Product Differentiation, Validation & Verification
How to Gain Market Share
55. MARKET OPERATIONS COVERAGE PLAN
for Initial Start-up
• 1 National Sales Manager / Head of Sales
• 11 AL Territory In-charges/Managers
• 2 Lube Engineers-Industrial sales
• Widen the coverage in whole country
• Extended Industrial Customers
• Lube Engineering Services
• Available in all major markets with gap coverage
