Kolkata-headquartered Andrew Yule-controlled Tide Water Oil Co plans to take its newly acquired Veedol brand of lubricants to Germany this year.
The company had already set up Veedol International DMCC in Dubai to cater to the high-value West Asian market.
In 2011-12, Tide Water acquired Veedol International Limited, at an undisclosed price, from British Petroleum, with marketing rights in more than 120 countries.
“Veedol has a historic brand loyalty in Germany. We are planning to roll out our marketing operations either through an equity joint venture or franchise model to cater to the German market,” group chairman and managing director of Andrew Yule, Mr Kallol Datta, told newspersons here on Wednesday. The company is in active negotiation with foreign parties in this regard.
“We are expecting a substantial growth in terms of value as well as volumes from the Dubai and European operations this fiscal,” he added.
Future expansion
Andrew Yule holds 26 per cent stake in Tide Water. The residual stake is held by public. The lubricant-maker posted a net profit of Rs 58 crore on a turnover of Rs 1,000 crore the last fiscal.
According to Mr Datta, expansion of Veedol network to Germany will be followed by a similar roll-out of marketing operations in Latin America — preferably in Columbia or Mexico, South Africa and Indonesia and Malyasia.
“While acquisition of Veedol has opened up a huge growth opportunity before Tide Water; having the necessary manpower to manage such growth is now our main concern,” Mr Datta said.
Meanwhile, Tide Water is also expecting wider business opportunity with JX Nippon Oil and Energy Corporation. Tide Water is currently the India franchise of Nippon lubricants.
“Nippon wants to enhance the scope of their business in India latest by 2013. We are still in discussion about the future model of business,” Mr Datta said.