Tide Water Oil Company (India) Limited
Veedol is poised to deliver profitable growth. We are committed to
fostering a culture of innovation and excellence, empowering our team to deliver
exceptional value to our customers. 99
Dear Shareholders,
It is my pleasure to address you today as we navigate a dynamic
lubricant landscape in India. We at Veedol are committed to capitalising on emerging
trends while remaining true to our legacy of delivering high-quality lubricants and
exceptional service to our valued customers.
While the domestic lubricants industry projects a modest 3% overall
growth, the personal mobility segment, a key market for Veedol, is poised for a 7% surge.
This growth, however, will be driven by a shift from "volume to value" through
premiumisation as consumer preferences prioritise fuel efficiency and environmental
consciousness. This aligns perfectly with Veedol's long-standing commitment to provide
high-quality lubricants and exceptional service.
For nearly a century, Veedol has earned the trust of Indian consumers
with its reputation for premium products delivered at a value-driven price point. This
commitment to quality remains paramount as we navigate the evolving market.
Internationally, although we anticipate stagnant volume growth however a surge in
technological innovation for engine oils, greases, and coolants is envisaged. Veedol is
well-positioned to capitalise on these advancements through strategic partnerships and a
continued focus on research and development.
The past year has presented its share of challenges. The lingering
effects of the pandemic, coupled with geopolitical tensions disrupting global supply
chains and inflating input costs, could have easily derailed our progress. However,
I am proud to report that under the leadership of our Managing
Director, Mr. Arijit Basu, Veedol has not only achieved a turnaround in profitability but
has also embarked on a transformative journey. This progress extends beyond financial
metrics, encompassing a series of strategic initiatives that position Veedol for long-term
success.
While our financial statements are readily available in the public
domain, I want to highlight some of our key achievements in the digital and marketing
spheres. Our association with the Kolkata KnightRiders in the Indian Premier League and
the appointment of cricket legend Sourav Ganguly as our brand ambassador have
significantly bolstered our brand recognition. These efforts, coupled with the
introduction of new product lines and updated packaging, demonstrate our commitment to
remaining relevant in a rapidly evolving marketplace.
Looking ahead, we have charted a clear roadmap for sustainable growth
through a multi-pronged strategy. Our "white spot" strategy focuses on expanding
our distribution network to reach underserved markets. We are also actively pursuing
category penetration in new segments like Passenger Car Motor Oils (PCMO) and Commercial
Vehicle Diesel Engine Oils (CVDEO), capitalizing on the growing demand in these areas.
Additionally, recognising the shift towards premiumisation, we are increasing our focus on
synthetic blend lubricants, catering to a more environmentally conscious consumer base.
Expansion into international markets is another key pillar of our
growth strategy. We are actively forging partnerships with distributors and franchise
partners, leveraging their expertise to establish a strong global presence. In tandem with
this international expansion, we are working to increase our business share in the B2B
segment, focusing on both industrial applications and Original Equipment Manufacturer
(OEM) partnerships.
In conclusion, Veedol is poised to deliver profitable growth. Our
vision is one of long-term sustainability, achieved through a "people-ready" and
"future- ready" approach. We are committed to fostering a culture of innovation
and excellence, empowering our team to deliver exceptional value to our customers. I want
to express my sincere gratitude to all our valued shareholders, members of the Board,
executives, employees and all members of the union for their dedicated support. I also
wish to express my heartfelt gratitude and million thanks to all our Indian as well as
International customers, distributors, dealers and channel partners for being a part of
this journey and express my appreciation for their unstinted support towards endorsing our
brand and products for its quality and service.
Together we will navigate the exciting opportunities and challenges
that lie ahead, taking Veedol to the next level of success.
Thank you.
Sincerely,
Durgesh S. Chandavarkar