Indonesian company Federal Lubricants takes brands into Southeast Asian markets
Organisation has doubled in business size in the last six years, and is exporting into new markets across the region
Country Business Reports interviews and articles by Discovery Reports www.discoveryreports.com
For Patrick Adhiatmadja, CEO of Federal Lubricants, excellent products make for excellent brands. Inside the testing laboratory of one of Indonesia’s largest manufacturers of vehicle lubricants, motor engines run in place non-stop at different speeds. Experts from Federal Lubricants’ research and development department combine their observations from this room with survey results from consumers, mechanics and distributors to formulate lubricants that could actually lower engine heat or raise fuel efficiency.
“We know what existing products do, and we fill in the gaps,” Adhiatmadja says. “We maintain brand confidence and loyalty by always giving a little bit more than what the market expects. Product quality is at the core of our corporate philosophy.”
Such dedication and market understanding have driven the growth of Federal Lubricants for more than 25 years. Today, more than one out of five motorcycle riders in Indonesia use Federal Oil, the company’s main brand for motorcycle lubricants. For an organisation that has doubled in business size in the last six years, things are just starting to rev up. Last year, Federal Lubricants successfully launched Federal Mobil, its brand of lubricating oil for passenger cars.
The company also wants to venture into other fast-moving consumer automotive parts such as vehicle batteries and tyres.
To complement its expansion, Federal Lubricants is building a factory in Cilegon, a major coastal industrial city in Banten province, western end of Java. The company will also be putting up its new headquarters near the site.
Federal Lubricants also wants to export to Southeast Asian markets, especially Vietnam, Myanmar, Thailand and the Philippines.
“With help from new long-term distribution partners overseas, we will make our brands household names overseas,” Adhiatmadja says. “We want to work with companies that are willing to reinvest their gains into improving capability, infrastructure, capacity and technology.”