Tide Water to Close German Unit

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Tide Water to Close German Unit
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Tide Water Oil Co. (India) Ltd., owner of the Veedol brand, recently announced it will close its German subsidiary due to the restructuring of its European operations.

The board approved the dissolution of the company’s wholly owned subsidiary Veedol Deutschland GmbH on May 18, the Indian automotive and industrial lubricants manufacturer said in a stock exchange announcement.

Tide Water Oil said the subsidiary’s dissolution will be effective from Sept. 1, subject to the approval from the local authorities. “However, the group shall continue with the existing business, in [the] European Union, of the aforesaid subsidiary,” it added.

The company, whose Veedol brand is present in more than 65 countries through overseas subsidiaries and manufacturing plants, did not reply to requests for comment by deadline.

Tide Water Oil took control of the Veedol lubricants brand, including registered trademarks and logos, in October 2011 after the Kolkata-based company acquired a 100% stake in United Kingdom’s Veedol International Ltd. from its parent BP.

The company set up the German subsidiary Veedol Deutschland in 2013 to expand its operations in the European Union.

On May 18, Tide Water Oil said Veedol Deutschland’s financial results and cash flows are not significant to the group’s consolidated financial results and cash flows for the fiscal year ended March 31, 2024.

Veedol Deutschland’s turnover of Rs 9.7 crore (Rs 97.2 million or U.S. $1.2 million) represented 0.5% of Tide Water Oil’s consolidated audited turnover – net sales generated by a business – in FY24, it added.

The company’s consolidated revenue from operations stood at Rs 1,931 crore in FY24, up from Rs 1,854 crore a year earlier, according to its financial statement. The Veedol range of products includes engine oils for passenger cars, two and three-wheelers, heavy commercial vehicles, off-highway vehicles, buses and tractors. It also has gear oils, transmission oils, coolants, brake oil and greases for all automotive applications as well as a wide range of industrial and specialty lubricants.

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