KOLKATA: Two years after acquiring global rights for the Veedol brand from oil & gasmajor BP, public sector lubricant maker Tide Water OilBSE -0.30 % has decided to relaunch the brand in European markets, including Germany, Austria and Switzerland, where it once had a strong presence.
"We have decided to enter countries where Vedool had good salience in the past. The brand's equity is still strong in geographies including Germany, Austria and Switzerland. For these markets, sourcing will be done from Netherlands where we have set up a subsidiary. We hope to make our first sale in Europe by October," managing director RNGhosal told reporters after the company's annual general meeting in Kolkata on Monday.
"We are not in a hurry to regain our lost markets. Veedol still has some brand equity in Middle East and Latin America which will help give us some headway in re-entering those markets and slowly getting the market share it once enjoyed," chairman Kallol Datta said.
In October 2011 the company acquired Veedol International from CastrolBSE 1.12 % andLubricants UK Ltd, wholly-owned subsidiaries of BP, a deal that gave Tide Water Oil access to marketing rights for Veedol in more than 120 countries worldwide.
Nevertheless, the Veedol brand has been languishing as its former owner, BP, lost interest and invested very little in advertising and marketing for the past 7-8 years. Prior to that Veedol enjoyed an excellent presence and brand recall. Tide Water Oil will now try and re-launch the brand in markets where recall is still high. After acquiring the brand, Tide Water Oil has floated an operational subsidiary in Dubai, Veedol International DMCC, which servesthe Middle East and African markets where the brand will be launched again.
"Having started operations in February 2012, the Dubai arm has already achieved breakeven. We have already appointed country distributors in UAE, Oman, Kuwait, Jordan, Lebanon and Yemen," said Datta.
"In FY13 the Dubai arm reported a sales of about $7 million and this year we plan to double it," Ghosal said.