Executive Summary

KIPALA limited will be an innovative lubricant OIL production company that produces and distributes high-quality lubricants to retailers, motorists, automobile and commercial customers in the mining, construction, agriculture, power sectors, and the marine industry.

 The company has incorporated as a limited liability company with business registrations and licensing agency(BRELA). 

The company is desirous of setting up 350,000 liters at Vijibweni Area in Dar es salaam, Tanzania. The main factors that favor the selection of this site are accessibility to transportation and good infrastructure.

The company has management who have experience in the lubricant industry. Our strategic marketing plan will focus on producing high-quality lubricants of wide ranges while building our extensive distribution network in the region.

Opportunity

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.

In the automotive sector, penetration of used vehicles and subsequent lubricant changes in older vehicles increase the demand for lubricant in the country. 

In addition, the introduction of new modes of transportation, including motorcycles (popularly known as boda boda) and tricycles (also known as Bajaji) that require more frequent lubricant changes, provides growth opportunities for individuals and companies interested in starting and running lubricant businesses in Tanzania.

Problems

There is a shortage of lubricant oils production plants in Tanzania. Local market production of lubricants is very few in the country. This led to the importation of substandard lubricants, mainly in Arab countries, South Africa, and Kenya. In turn, it results in the proliferation of the dealers who supply the substandard oils in the maker and causing damage to cars and machinery that drive significant losses to consumers.

KIPALA lubricant plant is looking to fill that gap by building lubricant oils plants with an innovative design that will produce high-quality products according to local and international standards. The plant will have a production capacity of 350,000 liters of lubricants per year. 

KIPALA limited hope to increase lubricant production capacity in Tanzania once the project is operational.

Location

KIPALA lubricant plant will be located at Vijibeweni, Dar es salam. The areas were selected to reduce the transportation hurdle of raw materials from the port of Dar es salaam to our plants. The areas ensure the availability of proper infrastructures.

 Value of the Project 

KIPARA limited lubricant plant will bring the following benefits:

  • Increasing production capacity of lubricant in the country
  • Employment of local through contractor, products and services procurement from local dealers
  • Creating direct and indirect jobs during and after the construction of the project.

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Hussein Boffu is a business consultant with experience in the oil and gas(energy)industry, business strategy development, business planning, research, due diligence, sales and marketing, project coordination, supplies and equipment procurement. He has a passion to help entrepreneurs and businesses in the energy sector to build, grow, and develop sustainable, profitable enterprises. So that they can create more employment and provide a good life for their families, employees, and communities. He can be reached via Hussein.Boffu@Tanzaniapetroleum.com or Text/Call/WhatsApp +255(0)655376543