According to the agreement, MAG Lube will pay a royalty to GPPL for the formulation technology and brand. The high quality of IPOL lubricants will be maintained across the world in accordance with the quality standards stipulated by GPPL for IPOL.
“The consolidation of lubricant brands around the world is seen as an opportunity to grow and GP Petroleums with its brand IPOL, is well positioned to fill the space for affordable and high quality products in emerging markets. We will bridge the gap between customer quality expectations and affordability due to our strength in low cost manufacturing. Our objective behind this step is to utilize the expertise of MAG Lube and their distribution to push the IPOL brand across the world, particularly in the Middle East and Africa.” said Mr. Hari Prakash M, CEO at GP Petroleums Ltd.
“In a short time span, MAG Lube is present in over 50 countries and we are looking to leverage this presence to take IPOL global, and in the process create a new global brand. GP Global has ambitions to become a 250,000 MTPA lubricant company by 2021 and this agreement is the first and most vital cog in our efforts to achieve our shareholders vision,” said Mr. Sanjay Singh, COO at Maglube, UAE.
“We are sure that our expertise and widespread presence in various countries along with GP Petroleums, veterans in the lubricant sector, will result in a great partnership. We are happy to be a catalyst and part of IPOL’s journey towards becoming an international brand”, said Mr.Mahmoud Al Theraawi, CEO at Maglube LLC.
The current focus will be in the Middle East, Africa and Far East markets mainly in the automotive and industrial lubricant space. Specialty products like neat cutting oils and rust preventives would be sourced from GPPL. The markets under focus have an aggregate demand of over 2 MTPA.
MAG Lube LLC is an international brand and one of the leading manufacturers of lubricants within the Middle East. Establised in 2013, MAG Lube LLC is one of the fastest growing companies in the UAE having witnessed 100% growth year on year, with 30,000 sqm state-of-the art blending facility situated in the National Industrial Park, Jebel Ali – UAE. Their lubricant products are distributed in more than 50 countries, with a strong representation in the Middle East and Africa. Its factory has the latest fully-automated blending system technologies designed in France and has a fully equipped, ultra modern laboratory focusing on research and development. MAG Lube LLC currently has over 100 employees across the Middle East and Africa, who will continue to service customers with the same level of care following the recently announced acquisition by GP Global.