Indian government considers divesting Andrew Yule stake in Tide Water

Heavy Industries and Public Enterprises Minister Praful Patel disclosed that the Indian government will look into the possibility of offloading the stakes owned by Andrew Yule & Company Ltd. (AYCL) in Tide Water Oil. The Kolkata-based, tea-producing company has a 26% stake in Tide Water Oil, which has been producing automotive and industrial lubricants in India since 1928. AYCL has set a gross sales target of Rs324 crore (US$61 million) in 2012-13. In the current fiscal year, the company’s gross sales reached Rs277 crore (US$52.5 million). Its tea production business has gone up from 96 lakh kilograms in 2007-08 to 110 lakh kilograms in 2011-12. Since its rehabilitation in 2007, AYCL has been profitable. The company’s net profit in 2011-12 is estimated at Rs10 crore (US$1.9 million). (March 30, 2012)