Tide Water Oil to float JV with JX Nippon Oil

KOLKATA: Tide Water Oil, a member of the Andrew Yule Group, has signed an MoU with Japan's JX Nippon Oil & Energy Corporation to manufacture and sell ' Eneos' brand of lubricants in the country and nearby nations.

Both the companies would float a 50:50 joint venture (JV), following which the manufacturing and selling of 'Eneos' would be transferred to the new entity, Tide Water Oil Chairman Kallol Datta told reporters here today.

At present, Tide Water was manufacturing the product under a licensing agreement with the Japanese firm which owned the brand.

The JV would require a total investment of Rs 100 crore, he said, adding that a part of that would be used as working capital needed for the new entity.

Datta said that Tide Water, which also had its own lube brand ' Veedol', was selling around 70,000 kilo litres per annum. Out of that, 25 per cent was 'Eneos'.

He said Tide Water would get a value for transferring the business to the JV.

Tide Water would now seek approval of the shareholders for the business transfer.

'Eneos' was being used by many OEMs in the two-wheeler, passenger car and construction equipment manufacturing segments in India.