The Telegraph
Tuesday , July 22 , 2014
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Tide inks Japan pact

Kallol Datta (right) with Naoto Hoya of JX Nippon Oil & Energy Corporation (left) in Calcutta on Monday. A Telegraph picture

Calcutta, July 21: Lubricant manufacturer Tide Water Oil Co. (India) Ltd has entered into an agreement on a joint venture with Japan-based JX Nippon Oil & Energy Corporation.

The new company — JX Nippon TWO Lubricants India Private Ltd — will manufacture and market Nippon’s Eneos brand of lubricants in India, Nepal, Bangladesh and Bhutan.

Besides, it will meet the requirements of Japanese and Korean companies in the automotive and industrial segments.

Tide Water Oil has so far been the licensee of the brand in the country receiving technological support from the Japanese entity in return of royalty.

“Our joint venture has been signed and this is a big step. We signed a memorandum of understanding in February. This is a big step for India-Japanese business relations,” said Kallol Datta, chairman, Tide Water Oil Co. (India) Ltd.

The MoU was signed to set up the joint venture entity, which will now be an associate company of Tide Water Oil.

City-based Tide Water Oil is a member of the Andrew Yule group, which has interests in engineering, tea, power generation, digital communication systems and lubricants. It has the Veedol brand of lubricants in its kitty.

According to R. N. Ghosal, managing director of Tide Water Oil, the move opens up a vast opportunity to develop and leverage closer ties with Japanese original equipment manufacturers.

“With their active stake in the JV, I am sure they will bring the latest technology for the Indian market, specially in the passenger car,” Ghosal said.