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Tide Water Oil inches up after JV pact with Japan's JX Nippon Oil

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Last Updated : Jul 23 2014 | 11:49 PM IST

Tide Water Oil (India) rose 0.92% to Rs 12005.95 at 10:57 IST on BSE after the company said it has signed an agreement with JX Nippon Oil & Energy Corporation, Japan to form a 50:50 JV firm in India.

The announcement was made after market hours on Tuesday, 22 July 2014.

Meanwhile, the S&P BSE Sensex was up 101.48 points or 0.39% at 26,127.28.

On BSE, so far 232 shares were traded in the counter as against average daily volume of 1,063 shares in the past one quarter.

The stock hit a high of Rs 12,198 and low of Rs 11,940 so far during the day. The stock had hit a record high of Rs 13,004.90 on 21 July 2014. The stock had hit a 52-week low of Rs 6,556 on 6 September 2013.

The scrip had outperformed the market over the past one month till 22 July 2014, surging 13.36% as compared to the Sensex's 3.67% rise. The stock had also outperformed the market in the past one quarter, jumping 39.77% as compared to the Sensex's 14.36% rise.

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The small-cap company has equity base of Rs 0.87 crore. Face value per share is Rs 10.

Tide Water Oil (India) after market hours on Tuesday, 22 July 2014 announced signing an agreement with JX Nippon Oil & Energy Corporoation, Japan, to form a joint venture (JV) company in India - JX Nippon TWO Lubricants India. Both Tider Water Oil and JX Nippon Oil have a 50:50 stake in the new JV entity. The JV will be responsible for selling, marketing, distributing and manufacturing the "ENEOS" brand of lubricants in India, Nepal, Bangladesh and Bhutan apart from catering to 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, the statement said.

In 1993, Tide Water Oil had entered into a technical collaboration with Mitsubishi Oil Company to market its lubricants in India. This collaboration continued with Nippon Oil Corporation when the latter merged with and absorbed Mitsubishi Oil in 1999. In 2010 Nippon Oil Corporation was restructured and re-organized and became JX Nippon Oil & Energy Corporation, 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 Corporation. This also enabled it to gain a larger footprint in the OEM oil segment by virtue of becoming Genuine Oil suppliers to the leading 2-wheeler companies in India like Hero MotoCorp, Honda Motorcycles and Scooters India and India Yamaha Motor as well as other Japanese OEMs like Kobelco and Kubota.

JX Nippon Oil & Energy Corporation is the largest Oil company in Japan having interests in refining, manufacturing and selling petroleum products and in the energy sector. Headquartered in Japan, the company has footprints all over the world including USA, Brazil, UK, France, Russia, UAE, India, China and other South East Asian nations.

Tide Water Oil (India)'s net profit declined 10.1% to Rs 17.76 crore on 6.7% growth in net sales to Rs 275.97 crore in Q4 March 2014 over Q4 March 2013.

Tide Water Oil is one of the leading players in the Indian lubricant industry. It manufactures and markets Veedol brand of lubricants.

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First Published: Jul 23 2014 | 10:55 AM IST

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