I C R A Limited

An Associate of Moodys Investors Service

FOR IMMEDIATE RELEASE

September 6, 2010

ICRA reaffirms LAA- and A1+ ratings to the bank facilities of Tide Water Oil Co. (India) Limited; assigns Stable outlook
ICRA has reaffirmed the LAA- (pronounced L double A minus) rating on the fund based limits of Rs 30.00 crore of Tide Water Oil Company (India) Limited (TWO) . ICRA has also reaffirmed the short term rating of A1+ (pronounced A one plus) of the reduced non fund based facilities of Rs. 45.0 crore of TWO . The outlook on the long term ratings is Stable. The ratings continue to reflect TWOs long established track record of more than eight decades in the business of lubricating oils; modest brand equity for the Veedol brand and technical collaboration with Nippon Oil Corporation, Japan for the manufacture and marketing of certain superior quality lubricants in India. The ratings also factor in the companys demonstrated higher sales growth in relation to the industry growth and moderate financial risk profile. The ratings are, however, constrained by the high competitive intensity in the industry; vulnerability of profitability to volatility in raw material (Base Oil) prices though the company and other industry participants have been passing on base oil price increases to consumers and strained, albeit improved recently, financial position of the parent company, Andrew Yule & Co. Limited (AYCL). Company Profile Tide Water Oil Co. (India) Limited (TWO) was incorporated in 1921 under the name of Eastern Oil Products Limited which was renamed as TWO in 1928. TWO is a part of the Andrew Yule Group (AYG) which has business interests in the field of tea and engineering. TWO is engaged in the production of lubricating oils and greases which are sold under the brand name of Veedol. The company started with its production facility based at Howrah and currently has five plants across the country at Faridabad in North, Silvassa and Turbhe in West, Howrah in East and Oragadam in South India which enables it to from 121.245.130.77 on all the regions effectively. DownloadPDF. ISIEmergingMarketsPDF in-tatacap01 service the requirements of2011-07-04 05:04:18 EDT.The company has a wide marketing and distribution network with 100 distributors, around 300 dealers and 20000 subdealers. Further, TWO has a technological collaboration with Nippon Oil Corporation Limited, Japan for the manufacture and marketing of superior quality lubricants under the brand name of Eneos in India. The Andrew Yule group holds 26.22% stake in TWO, while 14.31% is held by Domestic Financial Institutions and about 37.34% with non-institutional corporate bodies and the balance is held by individuals. Recent Results In 2009-10 the company reported a net profit of Rs. 57.79 crore on net sales of Rs. 651.39 crores as against a net profit of Rs. 27.55 crore on net sales of Rs. 529.05 crores in 2008-09.
1

For further details please contact: Analyst Contacts: Mr. K.Ravichandran, (Tel No. +91-44-45964301) ravichandran@icraindia.com Relationship Contacts: Ms. Anuradha Ray, (Tel. No. +91-33-22813158) anuradha@icraindia.com
ICRA has classified various instruments based on their complexity as "Simple", "Complex" and "Highly Complex". The classification of instruments according to their complexity levels is available on the website www.icra.in
1

100 lakh = 1 crore = 10 million For complete rating scale and definitions, please refer to ICRAs website www.icra.in or other ICRA Rating Publications.

PRESS RELEASE

Page 20

Disclaimer: ICRA Ratings should not be treated as recommendation to buy, sell or hold the rated debt instruments. ICRA Ratings are subject to a process of surveillance, which may lead to revision in ratings. Please visit our website (www.icra.in) or contact any ICRA office for the latest information on ICRA Ratings outstanding.

Downloaded by in-tatacap01 from 121.245.130.77 at 2011-07-04 05:04:18 EDT. ISI Emerging Markets. Unauthorized Distribution Prohibited.