South Africa is one of Africa’s largest economies, with a population of around sixty-one million. Consequently, the automotive and industrial sectors are sizeable. To cater to the lubrication needs of this vast economy, South Africa has attracted many multinational Oil Marketing Companies (OMCs) to supply lubricants.
According to Mordor Intelligence, the country’s annual lubricant consumption is estimated at 419.90 million litres, with a projected annual growth rate of 4%. The market continues to experience significant growth and is emerging as an attractive hub for key industry players. This market is considered one of the mature markets in Africa, and it, therefore, has a demand for high-quality lubricants. This has seen the major multinational lubricant brands take the lion’s market share. It is impressive that despite the significant presence of multinational companies, indigenous lubricant companies are also present. These companies have a range of products specifically made for the South African landscape, and they, too, have a customer base. To take it a notch higher; some of these companies have blending plants that apply international standards to produce high-quality lubricants.
As a result of this competency portrayed by the indigenous companies, the South African lubricants market has witnessed strategic alliances, cooperation, and partnerships among these companies and the multinational players in the lubricant industry for increased efficiencies, diversification, and other operational and economic benefits.
In this article, we look at one of the indigenous lubricant companies in South Africa that have made significant strides to cement its place in the lubricants industry. Initially a family-owned enterprise, the African Group (AG) Lubricants is a recognized player in South Africa’s market. It is a subsidiary of enX Group, an industrial group listed on the Johannesburg Stock Exchange that serves various industry sectors in South Africa and sub-Saharan Africa, offering branded and, in some segments, locally manufactured industrial equipment, components, services, and technical expertise across a broad spectrum of industries.
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