BSE-listed Maximus International, one of the largest producers and distributors of lubricants, plans to set-up a modern manufacturing plant in Africa to expand its capacity to 60,000-kilolitres per annum from 20,000-kilolitres per annum.
The plant is part of ₹25 crore the company has drawn to expand East African operations over the next 2-3-years, targeting to expand its topline by 20 per cent CAGR.
MIL, which has a strong presence in Africa and West Asia, operates in Kenya and other African markets through its step-down subsidiary, Quantum Lubricants EA (QLL).
Deepak Raval, Managing Director, MIL said by tripling the manufacturing capacity, the company will be placed to exploit the market potential in focus markets.
QLL had set-up its first lube oil blending plant of 20,000 klpa in Africa in 2014 and expanded business at 15 per cent CAGR in last seven years.
Plans to expand
Sensing an immense potential in the African market, the company plans to further expand its footprint in East Africa. The expansion would be undertaken through the green-field route and its facilities commissioned within the next 2-3 years.
The company aims to expand and strengthen its lubricants business in Rwanda, Uganda, and Tanzania either through a new subsidiary or an existing distributor partner.
Milind Joshi, MIL’s Chief Financial Officer said the company has identified Congo, South Sudan, Malawi, and Zambia as high-potential markets.
While the focus is on East and South Africa, MIL is also drawing up plans to enter the West African markets of Nigeria and Ghana in the near future with plans to set up manufacturing units, he said.
For the industrial segment, MIL manufactures metal working fluids, textile machinery oils, extreme pressure grease, and gear oils, while for the speciality segment, it manufactures refrigeration compressor oils, speciality hydraulic fluids, and printing ink oils. For the automotive segment, MIL’s products include engine oils, gear oils, and Automotive Transmission Fluid.
Shares of the company was up 2 per cent at ₹178 on Friday.
July 23, 2022