Summer Internship report presentation on

Evaluating the Potential and development of

Auto Gas Fuel station in Kolkata
Internship organization :- Aegis LPG (Gas) Private Limited
( A subsidiary of Aegis Logistic Limited)
Presents
by
Ravinandan Kumar Raushan
Batch of 2017-19
Registration Number : M1707

Under the Guidance

of
Mr. Rahul Agrawal
(Territory Sales Manager, East Zone)
Aegis Logistics Limited, Kolkata
 About the company-
Aegis Logistic Limited (ALL)
Business of the organization :-
Aegis Logistic Limited has five distinct but related business segments, and operates a network of bulk liquid
handling terminals, liquefied petroleum gas (LPG) terminals, filling plants, pipelines, and gas stations to
deliver products and services.
Business Model of ALL SWOT Analysis of ALL
Liquid Division Gas Division SWOT ANALYSIS
Strengths  Presence in entire value chain in gas business
Business Business  Steady cash flow from liquid division
 Economies of scale in bulk sourcing
- Third Party Liquid Logistics - Third Party Gas Logistics  Strategic terminal locations
 Strong customer relationships
- Operation and Maintenance - Auto Gas retailing and Packed  JV with one of the largest global trading company
service Cylinder for commercial segment
- Industrial Gas Distribution
- Marine Product Distribution Weaknesses  Gas business contributes majority of EBITDA
 Majority of gas business dependent on B2B clients
- Gas Sourcing  Dependence on OMCs for large part of the LPG business

Opportunities  Expanding market size of B2C business i.e. autogas and

Revenue Model Revenue Model commercial cylinders
 Expand LPG terminal capacity to tap rising demand
- Fee based revenue model - Fee Based revenue model for gas
- Handling and other services logistics
charges - Fee for sourcing Business Threats  Government policies
 Exchange rate volatility
- Operation and Maintenance fee - Retail Margin for gas business  High LPG prices can hurt demand
- Handling and other service  OMCs expanding their LPG terminal capacities

charges Competition
Competition IOCL
BPCL
HPCL
 Market Restraints
Insufficient LPG service stations
infrastructure
Industry Analysis
Market Drivers
Lack of understanding of LPG
Cost savings in respect to petrol (on average
benefits among global population
Lack of Governmental and Industry Government Auto-gas incentive 50% of petrol cost
Development of legal incentives for transition
Promotions to alternative fuels
Lack of OEM’s support of LPG sector
development in particular regions
policy Development of compressive service stations
network
• Low Sales Tax and low excise tax as compare to other fuels
Competitive pressure from Tightening emission requirements
• With the introduction of GST, LPG will be taxed at Single rate across all
alternative fuels and powertrain Expansion of LPG product lines by OEMs
technologies Sector
• Fiscal Measure- Subsidies, Rebate on kit etc.

Market Challenges
Increasing competitive pressure from
Indian Auto Gas Market
other alternative powertrain
technologies like hybrids
• 2.25 million of vehicle capable of running on
Building consumer awareness of LPG auto gas
benefits
Promotion of LPG conversion from • 9% of vehicle run on road in india run on
Governments and Industry
autogas
Increase in weight due to fuel tank
and kit • 1250 filling stations in all over india
Public attitude toward safety
Initiating ting the Governments to
• Major players in autogas vehicle are Maruti
offer a homogeneous incentive
scheme for a 5 – 10 year period
Suzuki, Tata Motors,Hyundai & Bajaj Auto
Meeting global plans of LPG • Major Players:
penetration by 2015-2020
Development of comprehensive
IOCL,BPCL,HPCL,RELIANCE,TOTAL,IPPL,AEGIS
refueling station networks LOGISTICS
 Channel Management in Auto Gas Retailing

 Challenge and Requirement for Channel Management

Profit of upstream > Profit from retail Operation => CODO or DODO Model
Less Effective as Retail Site operator than as a fuel Supplier because their overhead cost is not par with Stand-alone
More profit in Wholesaling Supplier than Retail Selling
 New Challenges
Finding Geographies- Where the branded retail network can provide ratable volume at minimum cost.
Skilling in supply Chain rather than Managing Pump Station.
 Network Targeting and Planning
Right Partner for Long Run
 Value Proposition Development
1) The Broader offer
i) Fuel – Range of Fuel at retail site, Fuel Quality, Price, Supply Cost
ii) Brand – Market Awareness, Price extensive Brand Support
iii)Non Fuel Service – Car wash, Convenience store, Lube Service etc
2) Commercial Term
 Research Objective
 The objectives of the study can be divided into two parts –
 1. The Primary Objective:
 To look for opportunities by finding out the performance levels of the PSU oil and gas companies so as to compare
them with the private players. The objective is to find out the areas where the new entrants can exploit the
weaknesses and incorporate them in their strategies.
 2. The Secondary Objective
 The problems faced by the industry which is affecting the growth of retail of Auto gas in the state
 To understand the road network in and around Kolkata so that the understanding can be utilized to for better
planning and strategizing for the future.
 What are the various opportunities which the companies can alternatively look it? Which areas have higher
potential?
 To analyze the impact of Golden Quadrilateral would this have with respect to Kolkata city.

 For Primary Data

 The questionnaire would be designed in such a way that it derives detailed information
through least time.
 For Secondary Data
• Data about the industry would be gathered through industry reports and annual reports
of the Company. Another source of data would be from the company’s web-sites or sites
of any petroleum related association
 Questionnaire
1) Which company holds the licence for selling Auto gas
 Indian Gas Ltd and IBP No of retail outlets
 HPCL
17%
 BPCL 39%
44% How old Pump

BPCL IOCL HPCL

2) How old is the Retail Outlet? 9%
12%
 Less than 2 yr
 More than 2 yr but less than 6 yrs 79%
 More than 6 yrs

Less than 2 years

more than 2 years and less than 6 year
3) What is the approx. sale of Auto Gas in a day? (kl) More than 6 years
Sales of autogas in a day
 100 – 499
 500 – 999 10%
6%
 1000 – 1499 48%
35%
1%
 1500 – 1999
 < 2000 100-499 500-999 1000-1499
1500-1999 2000 and above
 Questionnaire
4) What are the benefits derived from the company supplying the Auto LPG?
 Service Benefits from supply
 Quality
7%15%
 Commercial 35% 19%
24%
 No Options
Service Quality Commercial
 Others
No options Others
5) Are you fully satisfied with the service provided?
 Yes
 No
6) Is the quality of the product up to the desired standards? 40%
60%
 Yes
Quality Standard
 No
Yes No
11%

89%

Yes No
 Questionnaire
7) How do you plan to counter the growing competition in the face of higher volumes and
increased competition? COMPETITIVE ADVANTAGE
 Through better service THROUGH
Better Service
 Through better quality Better Quality
Other Amenities
 Providing other amenities like restrooms, stores, free gas etc. Other Revenue Options

 Other revenue options 7%

19% 28%
 Others________________________________________
15%
31%
8) What is the category of RO allotted?
 A Site Model of retail outlet
 B Site 23%

15% 62%
 C Site
Indented Quantity
10) Do you get the exact quantity as indented by you?
 Yes 30% CODO COCO DODO
70%
 No

YES NO
 Questionnaire
Barrel Sales
10) How much of your sales are through barrel sales?
 Less than 10% 13%
23%

 10% - 20% 22%

 20% - 30% 42%

 More than 30%

Less than 10% 10%-20% 20%-30% More than 30%

11) Would you consider choosing another company if given the right reasons
 Yes
 No Switching Option

19%

81%

Yes No
 Secondary Research
Areas of Problems
Non
Poaching
Sales
Tax
Opportunities
Clause Regime

Low
Service High Vehicle
level
Indentation
concentration
Growth
of RO’s / Person
Adulteration
Business
Models

Future Development
Loss in
transit
Mindset Economic of Haldia and
Growth the North East
Low
Bulk
Economic
Sales
Growth
Opening of
trade between
Space Higher
Benchmark Bangladesh and
China
 Solutions

Supply and Aggressive for

Quality
Distribution new slots

Smaller ROs to
Provisions for
Mindset target remote
losses
area

Political Aggressive bulk

Service
environment sales
Annexure-1
 Annexure-2
NOS. DEALERS NAME COMPANY STATION ADDRESS

1 Raibarielly Service BPCL Jaladhulagori, NH 6, Tollygunj Circular

Station Road, Howrah 700053, West Bengal

2 Sreema Service Station BPCL 109, Diamond Harbour Rd., Kolkata-

700008

3 Dum Dum Super S/Stn BPCL 16, Jessore Road, North 24 Parganas -
700028, West Bengal

4 Imperial Petrol Service tation BPCL 3V, Vivekanand Rd, Kolkata -700007,
West Bengal

5 Superway S/Stn BPCL P 327, City Road, Scheme Vim, Manicktola,

Kolkata - 700054, West Bengal

6 Amar Service Station BPCL Sinthee More, 24 Parganas North -

700036, West Bengal

7 Prince S/Stn. IOCL Anwar Shah Road

8 Salt Lake S/Stn IOCL Salt Lake, Sector-1

9 Bye Pass S/Stn IOCL 3 Brash Behari Avenue Connector

Rajganga,Nabapalli Kolkata 700107

10 Anderson Auto IOCL Belvedere Road, New Alipore, Kolkata-27

11 M/s.Hirji Auto Centre IOCL 120/2 A P C Roy Road

12 Sarkar Fuels IOCL Vill-Gobindpur,PO-Kholapota, Basirhat, 24 Pargana

13 Maya Fuels IOCL New Barrackpore,Sajirhat,PO-Ghola, 24 Pargana

14 City Of Joy Fuel Station IOCL Sonarpur Road, Paharpur, Kolkata-

700088

15 GQ Mondal Service IOCL 620 Diamond Harbour Road, Behala Ind.

Station Estate, Biren Roy Road(West),Behala

16 Jaunpur Service Station IOCL 194/1, G.T. Road, (N) Salkia, Howrah-
711106

17 Start Well IOCL 178, N.S.C. Bose Road, Kolkata- 700040

18 Sen Service Station IOCL Grand Trunk Rd, Shalkiya, Howrah-711106

19 SUKHRAJ AUTO FUEL IOCL KODALIA, SONARPUR, 24 PARGANA SOUTH

20 Shilposhri Filling Station IOCL 18, Chetlahat Road, Alipore Road, Kolkata

21 Singh Service Station IOCL Baluria, PO-Nabapalli, Barasat, North 24

Parganas, Kolkata-126

22 Mukherjee Motors IOCL 12, GT Road, Konnagar, Hooghly

23 Baranagar Service HPCL 133 & 134 B.T.Road, Baranagar;

Station Kolkata ; Pin: 700 036

24 The India Trading Co. HPCL 1 Ultadanga Road, Kolkata-67

25 Shree Shankar Service HPCL

Station Bangur Avenue ; 292/1 Jessoreroad,
Kolkata-55

26 Joyma Service Station HPCL G.T.Road, Barabazar,Chandan Nagore,

G.T. Road,Dist. Hooghly,712136

27 Dum Dum Service HPCL 556 Jessore Road, PO: Dum Dum 24
Station Parganas(N) Pin: 700028

28 Ravi Service Station HPCL Garia Mathurapur Road Dist: 24 Parganas

(S)Pin: 700084

29 Serampore Service HPCL 85,GT Road,Serampore,Hooghly,P-712201

Station

30 Saha Service Station HPCL Baruipur ;Garia Mathurapur Road Dist: 24

Parganas(S)Pin: 700084

31 Satkartar Service Station HPCL Taratala 69/1 D.H.Road

32 Rajrani Service Station HPCL PO:Garia;Garia Mathurapur Road Dist: 24

Parganas(S)Pin: 700 084

33 Budge Budge Service Budge Budge Road, Maheshtala,dist: 24

Station HPCL Parganas(South)

34 Standard Auto Service HPCL 212 G T Road, Salkia, Howrah 711107

35 Mahalaxmi Service Stn. HPCL Panpur ,Naihati,24 Parganas(N) 743126

Panpur

36 Maa Tara Service HPCL 46 BT Road, Panihati ; Sodepur,36. 700114

Station
Thank You