After recent expansion, the 2018 contract renewal with ExxonMobil in Argentina and the acquisitions of Lubrigrupo in Portugal, TTA in France and Metrolube in the United States, Moove – the lubricant arm of Brazilian energy and logistics group Cosan – is eyeing a possible stock offering and more asset expansions, according to CEO Filipe Affonso Ferreira.
Last week, Lube Report had a brief talk with the executive about the company’s plans, including bringing higher performance products to Brazil and expanding the Brazil business model abroad.
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Present in 11 countries on three continents, Moove is one of the largest lubricant production, sales and distribution companies in the world.
Could you start by telling me a little about Moove and its coverage area?
Ferreira: Moove is a global producer and distributor of lubricants, which has presence in South America, the United States and Europe. Our lubricant operations first began in Brazil, where we developed a unique business model with tailor-made management systems and tools, which have resulted in exponential growth and consistent performance over the years.
With a focus on people and non-stop innovation, we have replicated our Brazil business model, applying it to new business acquisitions, resulting in top-notch performance.
What is the largest challenge you face when it comes to doing business in Brazil?
Ferreira: Due to its large territory and regional diversity, one of the greatest challenges of doing business in Brazil is appropriately managing logistics and distribution, and this is where Moove has put much of its investment.
Over the years, we have developed an efficient management system that has an excellent connection to and understanding of the different customer segments and trade channels in the country. Our system is in constant evolution, and it is recognized as a reference in the market.
What kind of new developments or practices are occurring in the Brazilian lubrication market? And what is Moove doing to support this innovation?
Ferreira: The lubricant industry is constantly changing in Brazil, and what I see now is an evolution toward products that are superior in terms of performance. What I mean are products that are aimed at improving the efficiency and productivity of engines – [as if] equipment [were] seeking lubricants in the market.
To accomplish this, we have a top-notch partner that is highly focused on developing products well-aligned with the technological trends of today, most specifically those that boast high performance.
We are dead set on strengthening brands, and that means offering the best possible portfolio of products and services, always bringing the best solutions to our customers.
Could you tell me a little about Moove’s plan to expand, including IPO intentions?
Ferreira: Since 2017, we have been accelerating our asset investments, and this includes greenfield expansion of our current business as well as brownfield acquisitions and other expansion projects throughout Europe, the United States and Latin America.
As for our future business plan, we have new investments under discussion that are independent of any eventual IPO. We will announce more details later.
Would you say that your business model in Brazil will be the same one used in other countries?
Ferreira: Yes, our Brazil business model is the fundamental base of our strategy. Industry know-how and expertise have been under development throughout the years we have operated in Brazil, and these strategies are now being applied in the other markets we are operating in.
It is not just cut and paste though. We develop a specific strategy for each business unit by first taking local idiosyncrasies into consideration. Remember that it not only entails making operations profitable but also developing a sustainable business growth platform for each market at hand.
Do you see the best opportunities coming out of Brazil or are there other countries Moove is focusing on?
Ferreira: Moove is always on the lookout for new opportunities and acquisitions in all the regions we cover but our focus right now, in terms of expansion, is on Europe and the United States.
We are continuously strengthening our processes by working with clear, well-built strategies. In the end, our objective is to increase our image as a reference in the lubricants market and to boost our ranking as one of the largest lubricant companies in the world.