Energy

<h2 class="MsoNormal" style="text-align: justify;"><span style="font-size: 12pt; line-height: 107%; font-family: Verdana, sans-serif;">Q1. Could you start by giving us a brief overview of your professional background, particularly focusing on your expertise in the industry?</span></h2><p class="MsoNormal" style="text-align: justify;"><span style="font-size: 10.0pt; line-height: 107%; font-family: 'Verdana',sans-serif;">Of course! I have a solid background in the oil industry, with comprehensive experience as a Sales manager (Corporate &amp; Technical). As I have worked here for many years, I have worked in various roles specializing in lube audit, aftersales services of industrial and power lubrication sector in Bangladesh.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-size: 10.0pt; line-height: 107%; font-family: 'Verdana',sans-serif;">I gained a deep understanding of key industry aspects of lubrication by working with Chevron, Shell &amp; Total Lubricants in this country. I started my journey in 2012. After progressing in this profession, I worked as a team manager at TotalEnergies Bangladesh. As a team manager, I always give proper guidelines to my team members on how to complete the whole sales task properly. My work has involved many sectors like inventory, forecast, and technical services of this company, which has given me wide respect.</span></p><p class="MsoNormal" style="text-align: justify;">&nbsp;</p><h2 class="MsoNormal" style="text-align: justify;"><span style="font-size: 12pt; line-height: 107%; font-family: Verdana, sans-serif;">Q2. Who are the main players in the lubricants industry, and what market share or position does each represent?</span></h2><p class="MsoNormal" style="text-align: justify;"><span style="font-size: 10.0pt; line-height: 107%; font-family: 'Verdana',sans-serif;">The following are the leading companies in the Industrial Lubricant market. These companies collectively hold the largest market share and dictate industry trends. </span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-size: 10.0pt; line-height: 107%; font-family: 'Verdana',sans-serif;">MJL (ExxonMobil) is the main player, recognized for its Mobil brand and famous for its automatic and industrial lubricants. </span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-size: 10.0pt; line-height: 107%; font-family: 'Verdana',sans-serif;">Royal Dutch Shell Co. consistently dominates the market share, covering industrial, marine, and automotive lubricants. </span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-size: 10.0pt; line-height: 107%; font-family: 'Verdana',sans-serif;">TotalEnergies is also the most well-known and biggest key player, particularly in Europe and Africa. </span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-size: 10.0pt; line-height: 107%; font-family: 'Verdana',sans-serif;">Chevron Corporation has a significant share, especially in the US market, and is famous for Chevron, Texaco, and Havoline brands. All of these companies dominate the global lubricants market. Each company applied its strengths in R&amp;D to grow its market share. On the other hand, Petronas, Castrol and some other companies like Gulf, Lukoil are also growing for their competitive price benefits.</span></p><p class="MsoNormal" style="text-align: justify;">&nbsp;</p><h2 class="MsoNormal" style="text-align: justify;"><span style="font-size: 12pt;"><strong><span style="line-height: 107%; font-family: Verdana, sans-serif;">Q3. How has pricing evolved since COVID?</span></strong></span></h2><p class="MsoNormal" style="text-align: justify;"><span style="font-size: 10.0pt; line-height: 107%; font-family: 'Verdana',sans-serif;">Pricing has evolved remarkably since COVID-19, because of economic policy adjustments, supply chain disruptions, and changes in customer behavior. Labor shortage and global supply chain problems led to higher production and transportation costs, increasing prices, especially for automobiles and electronics. Price changes were relatively stable in the years leading up to the pandemic.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-size: 10.0pt; line-height: 107%; font-family: 'Verdana',sans-serif;">On average, prices increased by 14% per month while decreasing by 12%. As the pandemic progressed, this changed dramatically. Price increases became more frequent in early 2020, peaking in early 2022. Overall, post-COVID pricing has evolved due to volatility and upward pressure across many sectors. Import-based brands are especially struggling to keep the price due to the dollar price hike in Bangladesh.</span></p><p class="MsoNormal" style="text-align: justify;">&nbsp;</p><h2 class="MsoNormal" style="text-align: justify;"><span style="font-size: 12pt;"><strong><span style="line-height: 107%; font-family: Verdana, sans-serif;">Q4. What are the best growth opportunities in the lubricants market, and why?</span></strong></span></h2><p class="MsoNormal" style="text-align: justify;"><span style="font-size: 10.0pt; line-height: 107%; font-family: 'Verdana',sans-serif;">The demand for high-performance synthetic lubricants represents the best growth opportunity in the lubricants market. It's driven by the industrial, automotive, and marine sectors. Typically, the market for lubricants stands to benefit greatly from the growing demand for renewable energy.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-size: 10.0pt; line-height: 107%; font-family: 'Verdana',sans-serif;">Increased renewable energy infrastructure needs advanced lubrication solutions to work reliably and efficiently.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-size: 10.0pt; line-height: 107%; font-family: 'Verdana',sans-serif;">&nbsp;</span></p><h2 class="MsoNormal" style="text-align: justify;"><span style="font-size: 12pt; line-height: 107%; font-family: Verdana, sans-serif;">Q5. Are there any mergers and acquisitions/consolidations that are expected in the industry?</span></h2><p class="MsoNormal" style="text-align: justify;"><span style="font-size: 10.0pt; line-height: 107%; font-family: 'Verdana',sans-serif;">Yes, mergers and acquisitions are expected in various industries like healthcare, lubricant, energy, and technology sectors (M&amp;A). In healthcare and technology, many small and medium-sized companies seem to compete very difficultly in markets with a handful of behemoths.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-size: 10.0pt; line-height: 107%; font-family: 'Verdana',sans-serif;">These companies often find it more profitable to be acquired by one of the giants for an extensive salary. M&amp;A activity can heat up due to worsening economic conditions. Consumers spend less, and companies, such as retailers, struggle to stay afloat with less cash flow.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-size: 10.0pt; line-height: 107%; font-family: 'Verdana',sans-serif;">&nbsp;</span></p><h2 class="MsoNormal" style="text-align: justify;"><span style="font-size: 12pt; line-height: 107%; font-family: Verdana, sans-serif;">Q6. What is the current demand/volume in the market? How are key players adapting?</span></h2><p class="MsoNormal" style="text-align: justify;"><span style="font-size: 10.0pt; line-height: 107%; font-family: 'Verdana',sans-serif;">Market size is defined by market volume and potential. Market volume displays the totality of all available sales volume in a particular market. Therefore, volume depends on the consumer's volume and general needs. The overall size of the lubricants market, including both high- and low-end products, is around 20-25 million Liters/Month in Bangladesh.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-size: 10.0pt; line-height: 107%; font-family: 'Verdana',sans-serif;">Current demand in markets is experiencing remarkable changes. Markets are frequently driven by causes such as sustainability, post-pandemic recovery, and digital transformation. </span></p><p class="MsoNormal" style="text-align: justify;"><span style="font-size: 10.0pt; line-height: 107%; font-family: 'Verdana',sans-serif;">The demand for technology and e-commerce products is high because of increased online activity. Key players are adapting by accepting innovations. On the other hand, many businesses are emphasizing consumer experience and supply chain flexibility.</span></p><p class="MsoNormal" style="text-align: justify;">&nbsp;</p><h2 class="MsoNormal" style="text-align: justify;"><span style="font-size: 12pt; line-height: 107%; font-family: Verdana, sans-serif;">Q7. If you were an investor looking at companies within the space, what critical question would you pose to their senior management?</span></h2><p class="MsoNormal" style="text-align: justify;"><span style="font-size: 10.0pt; line-height: 107%; font-family: 'Verdana',sans-serif;">As an investor, an important question for senior management will be: </span></p><ul style="margin-top: 0cm; text-align: justify;" type="disc"><li class="MsoNormal" style="mso-list: l1 level1 lfo1; tab-stops: list 36.0pt;"><span style="font-size: 10.0pt; line-height: 107%; font-family: 'Verdana',sans-serif;">How does the company plan to raise capital to fund future growth? And how they will approach to the credit customers because most of the customers are habituate with credit facilities?</span></li></ul><p class="MsoNormal" style="text-align: justify;"><span style="font-size: 10.0pt; line-height: 107%; font-family: 'Verdana',sans-serif;">Also, another important thing should be considered that is, </span></p><ul style="margin-top: 0cm; text-align: justify;" type="disc"><li class="MsoNormal" style="mso-list: l0 level1 lfo2; tab-stops: list 36.0pt;"><span style="font-size: 10.0pt; line-height: 107%; font-family: 'Verdana',sans-serif;">What will the inventory or supply chain procedures be?</span></li></ul><p class="MsoNormal" style="text-align: justify;"><span style="font-size: 10.0pt; line-height: 107%; font-family: 'Verdana',sans-serif;">Because, in the current situation, without blending products, it is very tough to keep a smooth supply to the customers according to their quantity and price demand on time!</span></p><p class="MsoNormal" style="text-align: justify;">&nbsp;</p><p class="MsoNormal" style="text-align: justify;">&nbsp;</p><p class="MsoNormal" style="text-align: justify;">&nbsp;</p><p class="MsoNormal" style="text-align: justify;">&nbsp;</p>