Indias Tide Water Oil Co. is gearing up to enter South African and Sudanese markets with its Veedol automotive lubricants, license sales of its products in Bangladesh, and relaunch Veedol in the Americas through a new wholly-owned subsidiary.
Kolkata-based Tide Water formed a subsidiary to serve as its marketing licensee for both North American and South American markets. A company spokesman told Lube Report Asia that it appointed a tolling and blending agent in Canada, but declined to divulge the details.
Tide Water Oil will market Veedol products in the Andean region of South America, consisting of Colombia, Ecuador, Peru and Chile.
The company also signed a licensing agreement with an entity for sales of its Veedol line in Bangladesh.
The company is also planning entry into South Africa and Sudan. Managing Director R. N. Ghosal told Lube Report Asia that the company considers South African markets tough to penetrate. Its strategy is to enter the continent through existing distributors based in the United Arab Emirates and/or by creating a network of new dealers and distributors pending talks that are currently under way. After establishing itself in South Africa and Sudan, the company will probe other African markets for possible expansion as well.
Ghosal said its too early to forecast sales volumes or revenues Tide Water might achieve in these markets. He said the Veedol brand is already sold in Europe, North America, Latin America and the Middle East through third-party manufacturing.
In July 2014, Tide Water formed a joint venture with Japans JX Nippon Oil & Energy Corp., called JX Nippon Tide Water Oil Lubricants India, to sell, market, distribute and manufacture JX Nippons Eneos brand of lubricants in India, Nepal, Bangladesh and Bhutan, and to cater in particular to the oil requirements of Japanese and Korean original equipment manufacturers in those countries automotive and industrial segments.
Tide Water is an associate of the Andrew Yule Group conglomerate.