twoil- icra credit rating
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8/6/2019 TWOIL- ICRA Credit Rating
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I C R A Limited
An Associate of Moodys Investors Service
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.
FOR IMMEDIATE RELEASESeptember 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 crore1
ofTide 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 oflubricating 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 thecompanys 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 tovolatility in raw material (Base Oil) prices though the company and other industry participants have been passing onbase oil price increases to consumers and strained, albeit improved recently, financial position of the parent
company, Andrew Yule & Co. Limited (AYCL).
Company ProfileTide Water Oil Co. (India) Limited (TWO) was incorporated in 1921 under the name of Eastern Oil Products Limitedwhich was renamed as TWO in 1928. TWO is a part of the Andrew Yule Group (AYG) which has business interests inthe field of tea and engineering. TWO is engaged in the production of lubricating oils and greases which are soldunder the brand name of Veedol. The company started with its production facility based at Howrah and currently hasfive plants across the country at Faridabad in North, Silvassa and Turbhe in West, Howrah in East and Oragadam inSouth India which enables it to service the requirements of all the regions effectively. The company has a widemarketing and distribution network with 100 distributors, around 300 dealers and 20000 subdealers. Further, TWOhas a technological collaboration with Nippon Oil Corporation Limited, Japan for the manufacture and marketing ofsuperior 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 andabout 37.34% with non-institutional corporate bodies and the balance is held by individuals.
Recent ResultsIn 2009-10 the company reported a net profit of Rs. 57.79 crore on net sales of Rs. 651.39 crores as against a netprofit of Rs. 27.55 crore on net sales of Rs. 529.05 crores in 2008-09.
For further details please contact:Analyst Contacts:Mr. K.Ravichandran,(Tel No. +91-44-45964301)[email protected] Relationship Contacts:Ms. Anuradha Ray, (Tel. No. +91-33-22813158)[email protected]
ICRA has classified various instruments based on their complexity as "Simple", "Complex" and "Highly Complex". Theclassification of instruments according to their complexity levels is available on the websitewww.icra.in
1100 lakh = 1 crore = 10 million
For complete rating scale and definitions, please refer to ICRAs websitewww.icra.inor other ICRA RatingPublications.
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