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 utilise the expertise of MAG Lube and their distribution to push the IPOL brand across the world, particularly in the Middle East and Africa,” said 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 million tpy lubricant company by 2021 and this agreement is the first and most vital cog in our efforts to achieve our shareholders vision,” said 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 Mahmoud Al Theraawi, CEO at Maglube LLC.
The current focus will on 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 million tpy.
Read the article online at: https://www.hydrocarbonengineering.com/petrochemicals/15082018/gp-petroleums-and-mag-lube-to-distribute-ipol-lubricants-worldwide/