AFAL Manufacturing Limited (AML) of the Tristar Group has officially launched the local blending of Caltex lubricants in East Africa. The launch follows the signing of a long-term license agreement with Chevron Brands International LLC (Chevron) encompassing production, distribution, and marketing of Caltex lubricants in Kenya, Uganda, Tanzania, Rwanda, Burundi and Democratic Republic of the Congo (DRC). This move is timely as Caltex has had a long-term presence in Africa and the region is one of the fastest developing markets in the world with demand for premium lubricants growing at a healthy pace.
Kenyan government official Eric Simiyu Wafukho, Chief Administrative Secretary, National Treasury and Planning, attended the launch event with Rochna Kaul, Chevron Vice President, Europe, Africa, Middle East, South Asia Sales & Global Marine, and Tristar Kenya General Manager, Abhijit Sarmah.
Eugene Mayne, Tristar Group CEO, said, “The move to local manufacturing in Nairobi is a step in the right direction for our relationship with Chevron, which started in 2013 with a distribution agreement covering the imported Caltex Delo and Havoline brands in Kenya and several East African countries through our subsidiary Africa Fuels & Lubricants Limited (AFAL).
"We are confident that through local manufacturing we will add value to enable us to take the Caltex lubricants brand to a strong market position by supplying high quality lubricants backed by competitive prices and service. With more than 8 years of local market knowledge, we are confident that there is a growing need for high quality lubricants in the region and we are extremely pleased with this move to be able to sell and distribute locally manufactured, cutting edge Caltex lubricants."
According to available statistics, the market for lubricants in the region is expected to grow at a compound annual growth rate (CAGR) of more than 3 per cent in the next 4-5 years, though the effect of Covid-19 may impact expected growth.
Douglas Rankine, GM Middle East & Africa - Fuels & Lubricants, said, “The flagship Caltex lubricants that will be blended locally are Havoline and Delo engine oils. For more than a century, people have relied on Caltex Havoline advanced motor oil technology to continuously protect their engines against premature wear. Havoline motor oils with Deposit Shield technology feature an advanced formulation that protects your engine from harmful deposits, protects engine performance and maximizes fuel economy to protect the environment. Not to be outdone, Caltex Delo has been delivering advanced engine protection for over 80 years – going further since 1935, with a history of technological firsts and innovation. Caltex Delo advanced products are designed to deliver high-level engine and transmission protection with optimized fuel economy, for improved running costs, less downtime, and helps to save money.
“As part of this new relationship with AML, Chevron is excited to grow the Caltex brand across Eastern Africa and will continue to explore future growth opportunities in new and existing markets.”
Rochna Kaul, Vice President, Europe, Africa, Middle East, South Asia Sales & Global Marine, said, “Chevron has a long history in East Africa spanning seven decades. In 2013, Chevron signed a lubricants distribution agreement with Africa Fuels & Lubricants Limited, an affiliate of AML. The success of this new brand licensing model is anchored by the strong equity we have in our brands and a focus on implementing a compelling customer experience through our integrated fuels and lubricants business and strategic partnerships. We look forward to a long, and successful relationship with AML."