Essar Oil (EOL) has
commissioned its first petrol and diesel retail outlet in Gujarat in its
hometown of Jamnagar. The retail outlet was commissioned today by the Civil
Supplies Minister of Gujarat government, Mr Kaushik Patel. The opening ceremony
was attended by a large number of government officials, VIPs, and Promoter
Director Mr Anshuman Ruia.
Mr Chetan Nakhva of Astha
Petroleum is the franchisee of the retail outlet. This outlet is basically, a
test marketing exercise that Essar Oil has undertaken before it freezes on the
types of services and convenience to be provided to the customers. This outlet
is part of the company's plans to set up 1700 retail outlets by the time its
refinery comes into production in 2005.
EOL plans to open over 300 retail
outlets in the state of Gujarat by 2005. EOL has already appointed 150 dealers
in Gujarat.
It may be recalled that
Essar had soft launched their first retail outlet at the historical town of Devrukh,
in the district of Ratnagiri in Maharashtra last month. However, the
significant aspect is that this is indeed a historic occasion where an Indian
private sector oil company has set up the first private retail outlet in the
country, after 102 years. The first outlet in India was opened in 1901 but by a
multinational oil company. In the 70s, the first public sector oil company
opened its outlets.
Competitive pricing
and quality products
The basic approach of Essar Oil is to deliver petroleum products at a competitive
cost from a consolidated retail outlet that ultimately would have all the
hydrocarbon products such as diesel, petrol, LPG, kerosene, lubricants etc. for
the convenience of the consumers. Retailing of petroleum products is no
different from retailing of consumer products. The only major difference is in
the product - one being liquid which is dispensing in bulk. ‘Packaging’ in
terms of the quality and service at the outlet is as important as the packing
and appearance of a consumer product. The quality of diesel is as per
international specifications and has a much higher octane number than the local
standards. This helps the truckers get better mileage. Further, the fuel is
clean and has no gummy residues, which helps in reducing maintenance cost and
keeping the engine clean.
Trained manpower,
complete infrastructure
Every employee of the retail outlet undergoes extensive training in customer
service before being deputed.
The outlet has four
dispensing units - of which three are for HSD and one for petrol. These outlets
are equipped with high speed dispensing units. A full tank for a truck can be
filled within one minute. This will help to avoid conjunction and waiting.
Local employment
Over 300 retail outlets are planned in the state of Gujarat, which will provide
employment both direct and indirect to at least 30,000 families. Essar plans to
set up outlets in backward areas, rural areas and places where no outlets
exist.
The distribution network
planned by Essar Oil is to induct new dealers into the business and give
multiple outlets to each dealer. This will enable the dealers to run retail
outlets professionally and profitably despite offering competitive price to the
consumers.
The logo of Essar Oil is
very similar to the logo of Essar parent group except that it has been encased
in an owl shaped flying saucer device with a speed line below. The colors used
are red that stands for energy, white for purity, and green for Essar's concern
for the environment.
Essar Oil has started marketing large quantities of diesel in bulk to actual
users such as cement plants, state transport corporations, power generation
plants and other bulk users very successfully. All the customers are very
appreciative of the quality of HSD, which is being supplied by Essar, setting
new international standards of quality.
Essar Oil is implementing a
12mmtpa refinery at Jamnagar. On completion, it is expected to produce 55 lakh
tons of diesel and 22 lakh tons of petrol annually besides other petroleum
products like LPG, kerosene and naphtha.
Essar Oil is part of the Rs17000
crore Essar Group having interests in Steel, Shipping, Oil & Gas, Telecom
and Construction.
