After having established a foothold in the engine oil distribution market, Hi-Tech Lubricants is now gearing up to open 300 petrol pumps nationwide, said its company secretary Muhammad this month. “We have resolved to establish a medium size Oil Marketing Company (OMC) with 300 petrol pumps in the next three years,” he said after the board of directors approved to amend the Memorandum of Association for the purpose.
“The first of the series of petrol pumps would come online by December 2016 or early in 2017 in Lahore,” Imran informed, adding that the pump would offer all petroleum products except furnace oil. He said the company would make a minimum investment of Rs500 million which could stretch up to Rs1 billion. “We would utilise Rs842 million available as working capital with the firm. The available fund is part of the equity recently raised at the Pakistan Stock Exchange through Initial Public Offering.”
Out of 300 pumps in the making, the firm itself would operate four to five as flagship fuel stations while the remaining would be run by dealers as franchise. “We have signed an agreement with Byco Petroleum for the supply of the oils,” Imran added.
He said the firm would also establish storage facilities in all the four provinces, as it was mandatory for running an OMC in any of the provinces.
Subsidiary company in Afghanistan
The board of directors of the firm also approved to incorporate a wholly owned foreign subsidiary company in Afghanistan, which would supply vehicles’ engines oil to the neighbouring land-locked country. “Afghanistan is a ‘30,000-ton engine oil market’, Caltex and Total have a strong foothold in the segment there,” he said.
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