VADODARA, India, July 15, 2022 /PRNewswire/ — Maximus International Limited (MIL) has an over Rs 25 crore expansion plan for East African operations, over the next 2-3 years. This plan aims to increase production capacity by establishing a new state-of-the-art production facility. It will also enable MIL to expand into high potential markets in Africa.
The company aims to grow its sales by more than 20 percent CAGR over the same period and also expand its production capacity from its current 20,000 kilos per year to 60,000 kilos per year over the next 2-3 years.
MIL is a leading player in the lubricant manufacturing and distribution space with a strong presence in Africa and the Middle East. MIL is active in Kenya and other African markets through its retired subsidiary Quantum Lubricants EA Ltd (QLL).
The latter was acquired in 2019 by MIL’s wholly owned subsidiary MX Africa Ltd.
“By nearly tripling our production capacity, we are ideally placed to exploit the market potential in our focus markets,” said MIL’s Managing Director, Mr MIL. Deepak Raval.
QLL started its business in Africa with an inventory and sales business model, by importing finished lubricants into Kenya. As the company expanded, it established its first lube oil blending plant in Africa in 2014 with a current capacity of 20,000 kiloliters per year. QLL has extensive at over 15 percent CAGR in the past seven years.
The company feels huge potential in the African market and now plans to further expand its presence in the region East Africa. The expansion would be conducted through the green-field route and the facilities to be commissioned within the next 2-3 years.
The company plans to expand and strengthen its own lubricants business this year (2022) in Rwanda, Ugandaand Tanzania either through a new subsidiary or an existing distribution partner.
“We will be ready with our plans to expand our lubricants business in the coming months,” said Mr Milind JoshiChief Financial Officer (CFO) of MIL.
The company further identified DRC, Southern Sudan, Malawi and Zambia as high potential markets. While the focus is on East and South AfricaMIL is also planning to expand the West African markets of Nigeria and Ghana in the near future.
Plans to set up production units in some of these countries are currently on the drawing board.
“We are currently conducting feasibility studies to determine the company’s viability, market potential and profitability.” said Mr Raval.
MIL through QLL meet the demands of both automotive, industrial and specialty oil customers in Kenya. It also exports to other neighboring countries. QLL’s key distributors have been instrumental in bringing two-wheeler and four-wheeler oils to levels comparable to global oil companies.
For the industrial segment, MIL produces metalworking fluids, textile machine oils, extreme pressure grease and gear oils, while for the specialty segment it produces refrigeration compressor oils, specialty hydraulic fluids and printing ink oils. For the automotive segment, MIL’s products include engine oils, gearbox oils and Automotive Transmission Fluid (ATF).
The company aims to accelerate its growth and increase its margins and profitability through a better product mix and focus on new potential markets.
“Our nimble financial management enabled us to do well during the pandemic. We will continue to focus on increasing our margins and profitability,” said Mr. Joshi.
With the business plans in place, MIL is confident to execute them seamlessly and reach the next level of growth in the next 2-3 years with the support of both existing and future strategic stakeholders.
About Maximus International Limited (MIL)
Maximus International Limited (MIL) is a subsidiary of Optimus Finance Limited (BSE Listed), a Vadodara based non-bank finance company registered by the Reserve Bank of India. MIL was established under the Companies Act, 2013.
MIL is engaged in importing, trading and exporting a wide variety of products in various quantities and specifications to meet the diverse requirements of our customers for whom we act as an auxiliary/intermediary company.
For more information about the company, visit: https://www.maximusinternational.in/ or refer to the link below:
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