MUMBAI: GP Petroleums today said it has inked pact with the UAE-based Mag Lube to manufacture and market IPOL lubricants across the world.
As part of the agreement, Mag Lube will pay a royalty to GP Petroleums for the formulation technology and brand, a release said today.
"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," said Hari Prakash M, chief executive officer, GP Petroleums.
GP Petroleums, a part of the UAE-based GP Global, is into manufacturing of industrial and automotive lubricants, process and transformer oils, greases and other specialties under the brand name IPOL in the country and overseas market.
The partnership will help the company in utilising the expertise of Mag Lube and its distribution to reach IPOL brand across the world, particularly in the Middle East and Africa to start with, he added.
The focus at present would be on automotive and industrial lubricant space in the Middle east, Africa and Far East markets, the release said, adding specialty products like neat cutting oils and rust preventives also would be sourced from GPPL, as part of the joint partnership.
The markets under focus have an aggregate demand of over two million tonnes per annum (MTPA), it added.
"GP Global has ambitions to be a 250,000 MTPA lubricant company by 2021 and this agreement is the most vital cog in our efforts to achieve the shareholders' vision," said Sanjay Singh, chief operating officer, Mag Lube, UAE.
Mag Lube LLC, one of the leading manufacturers of lubricants within the Middle East, has a 30,000 sqm blending facility in the National Industrial Park, Jebel Ali, the UAE.
It markets its products across 50 countries, with a strong representation in the Middle East and Africa.