Indian Economy News

Tide Water Oil Co signs equal joint venture with JX Nippon Oil & Energy Corp

Kolkata: Tide Water Oil Co (India), a lubricant manufacturer and a member of the Andrew YuleBSE -1.17 % Group, has signed an agreement with Japan's JX Nippon Oil & Energy Corp to form a joint venture company in India - JX Nippon TWO Lubricants India.

Both companies will have equal stake in the new entity, Tide Water Oil said in a statement on July 21. The 50-50 joint venture will sell, market, distribute and manufacture the 'Eneos' brand of lubricants in India, Nepal, Bangladesh and Bhutan, apart from taking care of the Genuine Oil requirements of, mainly, the Japanese and Korean original equipment manufacturers in the automotive and industrial segments.

"The JV will leverage the capabilities of both its parent companies - the technical know-how of JX Nippon Oil and the distribution strength of Tide Water Oil - to consolidate market share in the Indian lubricant market," said Kallol Datta, chairman, Tide Water Oil Co.

In 1993, Tide Water Oil had entered into a technical collaboration with Mitsubishi Oil Co to market its lubricants in India. This collaboration continued with Nippon Oil Corp when the latter merged with and absorbed Mitsubishi Oil in 1999.

In 2010, Nippon Oil Corp was restructured and re-organized and became JX Nippon Oil & Energy Corp, the largest petroleum conglomerate in Japan. Tide Water Oil, having built a substantial lubricant business in India for its Veedol Brand, continued to market the Eneos brand in India through a technical collaboration agreement with JX Nippon Oil & Energy Corp. This also enabled it to gain a larger footprint in the OEM oil segment by virtue of becoming Genuine Oil suppliers to two-wheeler companies in India like Hero MotoCorpBSE 0.21 %, Honda Motorcycles and Scooters IndiaBSE 4.96 % and India Yamaha Motor, as well as other Japanese OEMs like Kobelco and Kubota.

JX Nippon Oil & Energy Corp is Japan's largest oil company with interests in refining, manufacturing and selling petroleum products, and in the energy sector. The company's markets include the US, Brazil, UK, France, Russia, UAE, India, China and other South East Asian nations.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

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