Tide Water Oil, a member of the Andrew Yule Group, has signed an MoU with Japan's JX Nippon Oil & Energy Corporation to set up a 50:50 joint venture in India.

The JV entity will be responsible for selling, marketing, distributing and manufacturing the 'ENEOS' brand of lubricants in India, Nepal, Bangladesh and Bhutan.

Both the companies would float a 50:50 joint venture (JV), following which the manufacturing and selling of 'Eneos' would be transferred to the new entity, Tide Water Oil, chairman, Kallol Datta said.

At present, Tide Water was manufacturing the product under a licensing agreement with the Japanese firm which owned the brand.

Dattta said the new JV entity, subject to shareholders' approval, would have a initial capital base of about Rs 1 billion.

'Eneos' was being used by many OEMs in the two-wheeler, passenger car and construction equipment manufacturing segments in India.

Shares of the company gained Rs 48.65, or 0.64%, to settle at Rs 7,591.70. The total volume of shares traded was 916 at the BSE (Friday).