Economic Review:
Trading Outside the EU
Duncan Foulkes, Morris Lubricants
Emerging markets will draw over $1 trillion of capital flows from non-resident investors this year, it has been said. Is the European lubrication industry benefiting from this huge growth area? British based company, Morris Lubricants, offers its outlook on the subject.
Paterson Lubricants India Pvt Ltd was launched in April as a fully owned Indian subsidiary of Shrewsbury-based Morris Lubricants. Its aim is to establish the company’s presence in the huge automotive and motorcycle markets in India through distribution partner George Oakes Ltd, which has 35 branch offices across the country.
The lubricants are manufactured to Morris Lubricants tried and tested formulations but there is the possibility that in the future the company would establish its own manufacturing facility to further develop the Indian market, as the country’s economy shows no signs of slowing down.
“From the outset, it was apparent that we wouldn’t be able to achieve our goal of exporting directly from our bases in the UK so the new Indian business was set up to gain entry to this fast developing market,” explains Managing Director, Andrew Goddard.
“It is a rapidly increasing economy and that is why we needed to find an alternative route to market. We established a wholly- owned business trading in India through a reputable distributor network. There are 18 million new motorcycle registrations in India each year so we decided to produce a dedicated automobile and motorcycle product range to meet the specific performance requirements of their market.”
“Inward investment is being actively encouraged by the Indian government, they are spending a huge amount on the country’s infrastructure and are really focused on developing India as an economic powerhouse, and our involvement will soon become an integral and important part of our company’s future.”
India aside, over the last year Morris Lubricants have also begun exporting to Russia, Italy, Vietnam, Mongolia and Azerbaijan as well as increased growth in traditional territories in Europe, Middle East, Far East, Australasia and North America.
The increased exports have brought with it extra demands on the business, space to store orders prior to dispatch, which has meant that the company has had to expand. For example, recently purchased premises adjacent to its Shrewsbury manufacturing plant may well be supplemented by further warehousing developments in the not too distant future. Further investment will also see £250,000 spent on a brand new small pack filling line. Andrew is hoping that Brexit does not result in a change to export tariffs, which would have a tendency to make
42 LUBE MAGAZINE NO.142 DECEMBER 2017
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