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Essar Oil opens its first retail outlet in Gujarat

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November 11, 2003 Bookmark and Share  

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. 

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