GP Petroleums (GPPL), a leading lubricant maker in India and part of the UAE-based GP Global, has signed an agreement with UAE-based lubricant manufacturer Mag Lube for manufacturing and marketing the Ipol lubricants across the world.
According to the agreement, Mag Lube will pay a royalty to GPPL for the formulation technology and brand. The quality of Ipol lubricants will be maintained across the world in accordance with the quality standards stipulated by GPPL.
Hari Prakash M, CEO, GP Petroleums, said “The consolidation of lubricant brands globally is seen as an opportunity to grow and GP Petroleums with its brand Ipol is well poised to fill the space for affordable and high quality products in the emerging markets. We would be able to bridge the gap between customer quality expectations and affordability due to our strength in low cost manufacturing. Our objective behind this step is to utilise the expertise of Mag Lube and their distribution to reach Ipol brand across the world, particularly in the Middle East and Africa to start with.”
Sanjay Singh, COO, Mag Lube, UAE said, “In a short span of time Mag Lube has reached out to over 50 countries and we are looking to leverage this presence to take Ipol Global, and in the process creating a new global brand. GP Global has ambitions to be a 250,000 MTPA lubricant company by 2021 and this agreement is the first and most vital cog in our efforts to achieve the shareholders vision.”
Mahmoud Al Theraawi, CEO, Mag Lube, said “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.”
According to the understanding the present focus would be in the Middle East, Africa and Far East markets and mainly in the automotive and industrial lubricant space. The specialty products like neat cutting oils and rust preventives also would be sourced from GPPL. The markets under focus have an aggregate demand of over 2 million tonnes per annum.