Tide Water acquires Veedol from BP

October 25th, 2011 - 11:55 pm ICT by IANS  

Kolkata, Oct 25 (IANS) Tide Water Oil (India) Ltd has acquired Veedol International from energy major BP Plc, putting an end to a legal battle of 17 years.

Tide Water, a lubricant maker, and Castrol were fighting the battle since 1994 for the rights of Veedol brand in India. Through the deal, the firm got global rights for the brand.

“The acquisition will put an end to the litigation that is pending between Castrol and us over the rights of Veedol,” R.N. Ghoshal, executive director of Tide Water Oil, told reporters here Tuesday.

The firm has “historical rights” over the brand in India and used to manufacture and sell it since 1920s, when its US parent had shares in the company.

A case over the brand?s rights in India is pending on at the Calcutta High Court, according to the company officials.

Burmah-Castrol was acquired in 2000 by the then BP Amoco (now BP Plc), through which it got control of the Veedol brand across the world, except India.

Tide Water, however, did not disclose the size of the deal.

?It was through a competitive bidding process. BP had put two brands - Veedol and Duckham - on the block. We cannot disclose the size of the deal as we have an agreement with them. They believe that disclosing the details will affect the bidding process of Duckham,? said Kallol Datta, chairman and managing director of Andrew Yule & Co.

Andrew Yule, a public sector company, has more than 26 percent stake in Tide Water.

The firm has five plants in India — at Howrah in West Bengal, Oragadam in Tamil Nadu, Turbhe in Maharashtra, Silvassa in Dadra and Nagar Haveli and Faridabad in Haryana. The plants manufacture the engine oil brand.

Asked about the future plans, Datta said, ?We will come up with a marketing subsidiary in the Middle East within two to three months. With the rise in volume, the firm may even think about a manufacturing facility there.?

The company is looking at overseas growth through the move in Europe, Latin America and neighbouring countries like Bangladesh.

Noting that Tide Water?s turnover was Rs.862 crore in the 2010-11 fiscal, Datta said they expected it to be about Rs.1,000 crore this fiscal and Rs.2,000 crore in another three years.

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