Maximus to triple capacity, expand footprint in East Africa, aims to achieve 20% CAGR

VADODARA, India, July 15, 2022 /PRNewswire/ -- Maximus International Limited (MIL) has drawn-up an over Rs 25-crore expansion plan for East African operations, over the next 2-3-years. This plan is designed to augment its manufacturing capacity by setting up a new state-of-the-art manufacturing facility. It will also enable MIL's expansion into high-potential markets in Africa.

The company aims to expand its top-line by over 20 per cent CAGR in the same period and also expand its manufacturing capacity from the present 20,000-kilolitres per annum to 60,000-kilolitres per annum over the next 2-3-years.

MIL is a leading player in the lubricants manufacturing and distributing space with a strong presence in Africa and the Middle East. MIL operates in Kenya and other African markets through its step-down subsidiary Quantum Lubricants EA Ltd (QLL).

The latter was acquired in 2019 by MIL's wholly-owned subsidiary MX Africa Ltd.

"By almost tripling our manufacturing capacity, we will be ideally placed to exploit the market potential in our focus markets," said MIL's Managing Director, Mr Deepak Raval.

QLL started its business in Africa with a stock and sale business model, by importing finished lubricants into Kenya. As its business expanded, it set-up its first lube oil blending plant in Africa in 2014 whose present capacity stands at 20,000-kilolitres per annum. QLL has expanded at over 15 per cent CAGR in the last seven years.

Sensing an immense potential in the African market, the company now plans to further expand its footprint in East Africa. The expansion would be undertaken through the green-field route and its facilities commissioned within the next 2-3 years.

The company aims to expand and strengthen its lubricants business this year itself (2022) in Rwanda, Uganda, and Tanzania either through a new subsidiary or an existing distributor partner.

"We will be ready with our plans to expand our lubricants business within the next few months," said Mr Milind Joshi, MIL's Chief Financial Officer (CFO).

The company has further identified DRC, South Sudan, Malawi and Zambia as high-potential markets. While the focus is on East and South Africa, MIL is also drawing-up plans to enter the West African markets of Nigeria and Ghana in the near future.

Plans to set up manufacturing units in some of these countries are on the drawing board stage presently.

"We are presently conducting feasibility studies to ascertain the viability, market potential and profitability of the business." Mr Raval said.

MIL through QLL caters to the requirements of both automotive as well as industrial and speciality oil clients in Kenya. It also exports to other neighbouring countries. QLL's major distributors have been pivotal in pushing 2-wheeler and 4-wheeler oils to a level on par with global oil majors.

For the industrial segment, MIL manufactures metal working fluids, textile machinery oils, extreme pressure grease and gear oils while for the speciality segment, it manufactures refrigeration compressor oils, speciality hydraulic fluids and printing ink oils. For the automotive segment, MIL's products include engine oils, gear oils and Automotive Transmission Fluid (ATF).

The company aims to accelerate its growth and expand its margins and profitability through a better product mix and focus on new potential markets.

"Our adroit financial management enabled us to fare well during the pandemic. We will continue to focus on expanding our margins and profitability," said Mr Joshi.

With its business plans firmed-up, MIL is confident of executing them seamlessly and attaining the next level of growth over the next 2-3-years with the support of its existing as well as 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-banking finance company registered by the Reserve Bank of India. MIL was incorporated under the Companies Act, 2013.

MIL is engaged in importing, trading and exporting a wide range of products in various quantities and specifications to meet the variegated requirements of our clients for whom we act as a Resource/Intermediate Company.

For further details on the company please visit https://www.maximusinternational.in/ or refer the below mentioned link:
https://www.bseindia.com/xml-data/corpfiling/AttachLive/dbc92e5a-74d1-468c-a41b-4dfc6a7f178c.pdf