The Telegraph
Saturday , March 1 , 2014
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Yule firm cements Japan ties

(From left) Hajime Uchida, head of New Delhi representative office, JX Nippon Oil & Energy Corporation, with Kallol Datta and R. N. Ghosal in Calcutta on Friday. Picture by Kishor Roy Chowdhury

Calcutta, Feb. 28: Tide Water Oil, a part of the Andrew Yule group, has signed a memorandum of understanding for a joint venture with Japan’s JX Nippon Oil and Energy Corporation to make the Eneos brand of lubricants for cars.

They will float a 50:50 joint venture with an initial investment of around Rs 100 crore subject to shareholder approval.

The joint venture will be responsible for selling, marketing and distributing Eneos in India, Nepal, Bangladesh and Bhutan. Their main clients are the Japanese car makers in the country.

“Earlier, Tide Water Oil used to market the Eneos brand in India through a technical collaboration with JX Nippon Oil and Energy. Now, the joint venture company will be responsible for the manufacture and sale of the brand,” Kallol Datta, chairman of Tide Water Oil, said here today.

He added that Tide Water Oil would now focus on the Veedol brand, which was acquired by the company from energy major BP Plc in 2011.

He said the company was selling around 70,000 kilolitres of automobile lubricant, 25 per cent of which constituted Eneos.

Managing director R.N. Ghosal said the presence of several Japanese automobile companies in India would help the company to increase its client base.

“There are many Japanese and South East Asian original equipment manufacturers with operations in India. Therefore, from a business perspective, there is more value from a stronger linkage with these companies,” Ghosal said.

Toyota, Suzuki, Mitsubishi, Yamaha, Honda and Isuzu have manufacturing facilities in India.