Maximus International to expand footprint in East Africa with a triple capacity; stock climbs ~6%

14 Jul 2022 , 09:31 AM

Maximus International Limited (MIL) has devised an over Rs25 crore expansion strategy for its East African operations over the next 2-3 years. This plan is intended to increase its manufacturing capacity by establishing a new cutting-edge manufacturing facility. It will also allow MIL to expand into high-potential African markets.

The company intends to increase its top-line by more than 20% CAGR over the same time period, as well as increase its manufacturing capacity from 20,000 to 60,000 kilolitres per year over the next 2-3 years.

MIL is a market leader in the manufacturing and distribution of lubricants, with a strong presence in Africa and the Middle East. Quantum Lubricants EA Ltd, MIL’s step-down subsidiary, operates in Kenya and other African markets (QLL).

“By nearly tripling our manufacturing capacity, we will be ideally positioned to capitalize on the market potential in our focus markets,” said MIL’s Managing Director, Deepak Raval.

QLL began its African operations with a stock and sale business model, importing finished lubricants into Kenya. As its business grew, it established its first lube oil blending plant in Africa in 2014, with a current capacity of 20,000 kilolitres per year. In the last seven years, QLL has grown at a CAGR of more than 15%.

Through a better product mix and a focus on new potential markets, the company hopes to accelerate its growth and expand its margins and profitability.

MIL is confident that, with the support of its existing and future strategic stakeholders, it will be able to execute its business plans smoothly and achieve the next level of growth over the next 2-3 years.

Maximum International’s counter was trading 5.50% higher at Rs189.95 against its previous close of Rs180.05 on BSE. The scrip opened at Rs180.05 and so far hit intraday high of Rs190.