Four Profitable Business Ideas and Opportunities In the lubricants Oils (Engine Oils and Greases) Industry in Tanzania

Lubricants such as engine oil and greases are the lifeblood for automobiles and factories. They are essentials commodities for motorists and industrial consumers. This is why make lubricants industry is one of the thriving business industries in Tanzania and Africa.

The job lubricant is to reduce friction. Friction is the sort of drag you get when you try to move one object over one another. 

Friction is what you get when you rub your hands together. Your hands get warms when you rub them because of friction.

There’s always friction when the two objects in contact rub against each other. 

But there are a lot of parts moving over each other in an engine, and the rest of an automobile, so there’s a lot of friction, a lot of wear, a lot of heat. 

If you run water over your hands as you rub them, you’ll notice that you get considerably less drag and practically no heat. 

So a long time ago, they found out that if you put if you could get a layer of fluid between the moving parts of any piece of machinery, you could eliminate a lot of friction, cut down the heat and reduce the wear.

Now that you have a good understanding of what lubricant does to your customers machine, Now let’s look at the demand of oils in Tanzania                                 

The market of lubricants of In Tanzania

Tanzania offers one of the largest and fastest-growing markets for lubricant business. This could be credited to various reasons like the growth of penetration of used cars in the country, more frequent changes of lubricants from older vehicles, and a good level of economic development and regulatory encouragement.

    

                      Opportunities c in Lubricants Industry

1.Start a lubricant Production Company/Build lubricant Production Plants.

Local market production of lubricants is very few in the country.  

There are only six lubricant plants in the country that are insufficient to meet the region’s existing and growing demand for lubricant. 

Entrepreneurs looking to participate in the oil industry come in and fill that gap by building a lubricant plant with innovative design.  

 There has been a proliferation of substandard lubricants in the country, causing loss to consumers by damaging their cars and machinery. 

To win in the lubricants market in Tanzania, you need to produce and package high-quality lubricants. That will be your competitive advantage.

Although before venturing into this project, it is essential to determine where your lubricant plant will be located, where you will procure materials, and what type of products you expect to produce to meet market demand. 

And what licenses and permits are required to start operations. So conducting a proper feasibility study will ensure your way to success.

2. Start Lubricating Oils Retail Shop 

This is easy to start a business in the lubricants industry. If you can secure a place and set up a shop nearby garages, you will be in a position to build a profitable business. 

This is because vehicle owners regularly change oils at the garages. That’s why setting up your shop there can guarantee you sustainable profits. Engine oil, grease, and brake fluids are fast-moving items in most lubricant retail shops.

The best marketing strategy for this business is to build a relationship with mechanics, as most vehicles owners and motorists rely on them for advice on what type and where they should buy lubricants for their cars.

3.Set up Lubricants wholesale distributions business

Eligible entrepreneurs can apply to become a significant oil marketing company’s super dealer who will work partly with them to sell their lubricants in the market.

Your supplier(large oil marketing company) will supply you a wide range of lubricants in bulk at a fair wholesale price, and in turn, you will sell and earn a modest profit margin, and you may decide to sell at retail price double profit.

As a super dealer, you will have to make sure that you have enough warehouse to keep the lubricants products.

4. Start Importation of lubricant oil 

Importation of lubricant is a thriving and lucrative business in Tanzania. As an oil importer, you can dictate your own price in the market and have the power of introducing your own packaging and new brand in the market

You need to rent a space secured enough to house your products. Due to the proliferation of substandard lubricants, there are many licenses and permits you will need to connect with from regulatory agencies before starting operations. The aim is to ensure that all imported oils meet local and international standards.

 

So, what are you waiting for?

If you feel interested in exploiting opportunities in the petroleum industry, start working on your idea right away. There is a price to pay from thinking about something too long and missing an opportunity. Let’s not make such a mistake again. Let’s not miss these opportunities. To make sure you will be able to take advantage of these opportunities, can we discuss your project idea today?