Submitted by: Dipesh Bhimani Student, Term- II IIPM

Submitted to: Deepak Asrani Divisional Manager, Ahmedabad Division Essar Oil LTD

Acknowledgement I woul li to t my project gui e Mr. Deepak Asrani (Di isional Manager

Essar Oil Ahmedabad Di ision) for his kind support and invaluable guidance in term of theoretical as well as practical knowledge and experience. His willingness to motivate us and showing us some examples that related to the topic of our project has contributed tremendously to my project. Along with the project work, his real life examples and motivational talks have given me a new way to see the world in a different way. I would take this occasion to express my deep gratitude to Mr. Vijay Deshpande (DGM HR, Essar Oil, Mumbai), Mr. Ajit Chandra Mishra (Zonal Head, Essar Oil) and Mr. Jayesh Buch (Director, Essar Group), who gave me an opportunity to work with Indias largest private sector oil company. A successful project can never be prepared by an individual efforts but it also needs a guardianship and full support of some people who actively participated in guiding and completing the project. I would also like to thank Mr. Rahul Dutt (Territory Sales Manager, Mehsana) Mr. Niral Shah (Accounts) and Mr. Vishal Tahiliani (Territory Sales Manager, Anand) whose guidance and co-operation have helped me in completing the project successfully. I would also like to thank ESSAR GROUP to do my summer internship in Essar Oil Ltd and all Sirs who were there with me to provide guidance and support. All these have helped me to make this project successful. This project has given me an exposure in terms of great learning, knowledge and practical experience. Knowledge in itself is a continuous process. At this moment, of this substantial enhancement I rarely find enough words to express our gratitude towards those who were constantly involved with me until successfully completion of my project.

Executive Summary

A Summer Internship has been an outstanding experience from HOW to WOW. It puts all your theoretical knowledge to practice. At Essar, first I was taught about the franchise model that they follow for their retail oil business. It is a quiet different model than those followed by other oil marketing companies the COCO model (Company Owned, Company Operated). Essar follows a DODO model (Dealer Owned, Dealer Operated Model). I learned through their existing outlets data, the procedure that they follow to give their franchise to any dealer. Then I got my project NFR (Non Fuel Retail) Business.

For my project I visited nearby places of Ahmedabad to collect all sort of Data. I selected people randomly and kind of interviewed them to get the requisite information for completion of the project. I gave my mid-work report to my company guide and I am finally suggesting through this report for a retail outlet.

Table of Contents No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11 12 13 Topic Acknowledgement Executive Summary Oil Industry in India Essar Group Essar Oil LTD(Company) Project Definition Customer Feedback(Questionnaires) Customer Perception RESULTS / ANALYSIS OF SURVEY AND OBSERVATION Project In Detail with Individual Conclusion Overall Conclusion Limitation Prospect Of ESSAR Biblography

Oil Industry in India The oil and gas industry has been instrumental in fuelling the rapid growth of the Indian economy. India has total reserves of 775 million metric tonnes (MT) of crude oil and 1074 billion cubic meters (BCM) of natural gas as on April 1, 2009, according to the Ministry of Petroleum. Petroleum exports during 2008-09 were US$ 26.2 billion according to the Ministry of Petroleum. Under New Exploration Licensing Policy (NELP VIII), 1.62 sq. km of area comprising 70 blocks was put up for bidding. The Cabinet Committee on Economic Affairs (CCEA) has approved award of 33 out of 36 oil and gas blocks that were bid for in New Exploration Licensing Policy (NELP-VIII), for which bidding closed on October 12, 2009. Production By the end of the Eleventh Plan the refinery capacity is expected to reach 240.96 MMTPA.
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Crude oil production during 2009-10 was 33.68 MT, compared to 33.50 MT in 200809. Refinery production in terms of crude throughput was 160.03 MT in 2009-10. The production of natural gas went up to 47.57 billion cubic meters tonnes (BCM) in 2009-10 from 32.84 BCM in 2008-09.

Consumption The sales/consumption of petroleum products during 2008-09 were 133.40 MT (including sales through private imports), an increase of 3.45 per cent over sales of 128.94 MT during 2007-08, according to the Ministry of Petroleum. India's domestic demand for oil and gas is on the rise. As per the Ministry of Petroleum, demand for oil and gas is likely to increase from 186.54 million tonnes of oil equivalent (mmt) in 2009-10 to 233.58 mmtpa in 2011-12. The refining capacity in the country increased to 177.97 million tonnes per annum (MTPA) as on April 1, 2009 as compared to 148.968 MTPA as on April 1, 2008.

Essar Group Mission To create enduring value for customers and stakeholders in core manufacturing and service businesses, through world-class operating standards, state-of-the-art technology and the positive attitude of our people Vision To be a respected global entrepreneur through the power of positive action.

     

Promoted by the Ruia Family Employs more than 50,000 people across 20 countries and over 150 offices A well balanced portfolio of assets in manufacturing, services and retail State-of-art facilities and technology Global level of operations and strong business relations Moving closer to customers and building strong brands

Corporate profile Moving beyond Indian frontiers, the Essar Group continues to grow internationally through focused strategies The Essar Group is a multinational conglomerate and a leading player in the sectors of Steel, Oil & Gas, Power, Communications, Shipping Ports & Logistics, Construction and Minerals. With operations in more than 20 countries across five continents, the group employs 60,000 people, with revenues of about USD 15 billion. Essar began as a construction company in 1969 and diversified into manufacturing, services and retail. Over the last decade, it has grown through strategic global acquisitions and partnerships, or through Greenfield and Brownfield development projects, capturing new markets and discovering new raw material sources. Today, the Group continues to expand its global footprint, focusing on markets in Asia, Africa, Europe, the Americas and Australia. Essar invests significantly in the latest technology to drive forward and backward integration in its businesses, and on leveraging synergies between these businesses. It also focuses on in-house research and innovation to be a low-cost manufacturer with high quality products and innovative customer offerings. Alongside its ambitious business pursuits, Essar has been committed to its social responsibility. The Group runs community outreach initiatives in all its plant locations, with a focus on education, healthcare, environmental and agricultural development, and selfemployment. Essar is committed to sustainable business practices. Our HSE (Health, Safety and Environment) management system is on par with global standards. We are also taking climate change initiatives to reduce our carbon footprint. This includes several CDM (Clean Development Mechanism) projects that can earn the company CER (Certified Emission Reduction) credits. A growing number of our businesses with new businesses joining the list every year are certified to international environment standards, like ISO 9001 / 14001, and health and safety standards, like OHSAS 18001. The Essar Group is widely regarded as a responsible and conscientious global employer. It has experience in managing businesses in different geographies with a culturally diverse workforce. This is why its people practices are sensitive to cross-cultural nuances. The Groups people strategy is focused on promoting a learning culture that continually enhances the professional skills of its employees.

History The Essar group was founded over three decades ago by the Ruia family and is headed by Chairman Shashi Ruia and Vice-Chairman Ravi Ruia. The Ruia family has been in business and trading since the 1800s, when the family first moved to Mumbai from Rajasthan in Western India. In 1956, Nand Kishore Ruia, the group founder, moved south to Chennai to begin independent business activities. In 1969, following the untimely demise of Nand Kishore Ruia, his sons Shashi and Ravi Ruia took over the group. Along with a team of seasoned professionals, the Ruias have built the perfect platform for Essar's accelerating growth. With a strong foundation at Indias industrial core and in the sunrise services sector, Essar has stayed firmly in the forefront of new opportunities. An early start has made us a key player in India's exploding telecom market. Similarly, we set up Indias first independent power plant and its first new generation private steel plant. The name of the company ESSAR is getting from the first letter of the two brothers SHASHI and RAVI S as ESS and R as AR thus the combination of them make ESSAR. Touching Millions of Lives For decades, they have quietly touched the lives of millions of people with the steel to build cars, the oil to fuel factories, the power to light up thousands of lives and the pipelines to bring drinking water to remote villages. Today, they have come closer by connecting customers with their cellular phone services and talking to thousands of people through their call centers, a countrywide chain of fuel outlets and marketing steel at the retail level. Some of the companies run under the Essar Umbrella are:  Essar Oil  Essar Steel  Essar Power  Essar Construction  Essar Shipping  Essar Telecom  Essar BPO (Agies Ind Ltd.)  Essar Agro Tech This has led Essar to emerge as one of the biggest corporate group not only in India, but gained huge reputation and image internationally. Essar group has played a major role not only in present but also in past. Their contribution to the nation is a significant one.

ESSAR OIL LIMITED(Company)

Company Information Name Registered Office : Essar Oil ltd. : Khambhalia Post. PO No. 24, Dist. Jamnagar - 361 305 Corporate Office : Essar House, PO No. 7945, 11, Keshvrao Khadye Marg, Mahalaxmi, Mumbai 400 034 Chairman Vice Chairman Directors : Shashi Ruia : Ravi Ruia : N Nayyar, P Ruia, A Ruia, AN Sinha,S Mathur, DJ Thakkar, G Goswami, NS Kannan, KN Venkatasubramanian, VK Sinha, S Ghai Company Secretary Auditors : Mr. Sheikh S Shaffi : M/S.Deloitte Haskins & Sells, Mumbai

Essar's oil refinery at Vadinar in Jamnagar, Gujarat, is ideally located on India's West Coast in close proximity to the crude rich Gulf States. Vadinar is an all-weather deep-draft natural port. About 70% of India's crude imports land in and around this region. Besides, the refinery's location enables access to the fast growing markets in the north and western region of India through product pipelines. The eastern and southern parts of India will be serviced through the coastal route circling the country. The refinery is operating at a capacity of 2,80,000 barrels per day (14 MMTPA). Essar Oil is in the process of increasing this refining capacity to 680,000 barrels per day (34 MMTPA). The refinery has been built with state of the art technology with technical and project assistance from the world's leading consultants and equipment suppliers in the field. It is designed to handle a diverse range of crude mixes. The world-class refinery produces middle distillates like aviation turbine fuel, kerosene oil and high-speed diesel, as well as LPG and transport fuels conforming to Euro III and Euro IV product quality standards. Post expansion the refinery will have a Nelson Complexity of 12.8 with capability of processing tougher crude and producing petroleum products of very high quality, meeting Euro V standards. The refinery is fully integrated with its own dedicated 120 MW co-generation power plant, port and terminal facilities. It includes rail-car and truck loading facilities and a Single Point Mooring (SPM) capable of handling vessels up to 350, 000 DWT with a marine product dispatch capacity of 14 MMTPA. The refinery has built-in environment friendly technologies for pollution management. A self-sustainable, 700-acre greenbelt, with over 3 lakh saplings, has been developed to ensure a green corridor around the entire refinery complex. Essar Oil Ltd is an integrated oil and gas company spanning the entire value chain, from deep within the earth all the way to the end customer. The Essar Oil Ltd grass roots refinery in Gujarat, India (started in 1996) was completed and commissioned in 2006 (commissioned in third quarter). The refinery project was delayed several times due to environmental concerns and financial problems, including initial cost over runs and a shortfall in equity contributions. According to company reports, the refinery was 60% complete in 1998 but had the misfortune to be struck by a cyclone that caused considerable damage. Now the refinery is complete it is producing 10.5 million tones of processed products a year (MMTPA). The refinery employs over 1,000 personnel (the construction process required between 3,000 and 4,000). The Essar Oil refinery refines crude oil to produce diesel, gasoline, jet fuel, kerosene, fuel oil and bitumen to suit market requirements. Essar Oil is fuelling India's future, poised to lead India's energy market as a fully integrated oil company.

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ESSAR POWER

Essar power is Indias first new generation independent power plant set up as soon as the power sector was opened up to private sector. Essar power has Indias first multi-fuel power plant, with the lowest manpower to megawatt ratio and one of the lowest capital per mega watt in India.

Essar Power operates five power plants with a combined capacity of 1200 MW in three locations across India. This includes two Gas-based plants, of 500 MW and 515 MW capacities, and one liquid fuel based 32 MW power plant in Hazira, of 120 MW cogeneration plant in Vadinar and a 25 MW coal-based plant in Visakhapatnam. Work is currently under way to increase generation capacity to 6000MW. The company will set up 3 coal based plant of 1200 MW each in Gujarat, Madhya Pradesh and Jharkhand, aggregating 3600 MW. An additional 1200 MW (co-generation plant of equivalent capacity) is also under development in vadinar to supply power and steam to the expanded refinery. With a license to enter the transmission, distribution and power training segments, Essar Power is now a fully integrated, end-to-end player in the power sector. By using the latest technology and equipment, Essar power can generate and supply power at very competitive price points. The also has the capability to generate power projects for other companies. Essar Power is exploring opportunity for new projects based on thermal, wind and hydro energy. It is also committed to reducing emissions form its plants and earning carbon credits. The 500 MW combined cycle power plant at Hazira is eligible for Certified Emission Reductions (CERs) under the Kyoto Protocols Clean Development Mechanism (CDM)

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ESSAR STEEL

Essar Steel is a global producer of steel with a footprint covering India, Canada, USA, Middle East and Asia. It is a fully integrated flat carbon steel manufacturer-from iron ore to ready-to-market products. Essar Steel has a current capacity of 9 Million Tones Per Annum (MTPA). With its aggressive expansion plans in India as well s Asia and the Americas, its capacity will go up to 20 to 25 MTPA. Its products find wide acceptance in highly discerning consumer sectors, such as automotive, white goods, construction, engineering and shipbuilding.

In 2007, Essar steel acquired Algoma Steel in Canada, which has a capacity of 4 MTPA, and Minnesota Steel, which has iron ore reserves of over1.4 billion tones. While the company is building a 4.1 MTPA steel plant in Minnesota, it is also setting up a 2 MTPA hot strip mill in Vietnam and a 2.5 MTPA integrated steel plant in Trinidad & Tobago. In Indonesia, it operates a 4,00,000 TPA cold rolling complex with a galvanizing line of 1,50,000 TPA, making it the largest private steel company in that country.

Essar steel is the largest steel producer in western India, with a current capacity of 4.6 MTPA at Hazira, Gujarat, and plants to increase this to 10 MTPA. The Indian operations also include an 8 MTPA beneficiation plant at Bailadilla, Chhattisgarh, and an 8 MTPA pellet, complex at Visakhapatnam. Additionally, Essar is setting up a 6 MTPA integrated steel plant in Paradip, Orissa. The Essar steel complex at Hazira in Gujarat, India, houses the worlds largest Gas based single location sponge iron plant, with a capacity of 5.5 MTPA. The complex also houses the steel plant and the 1.4 MTPA cold rolling mill. The steel complex has a complete infrastructure setup, including a captive port, lime plant and oxygen plant. The company is also build in a 1.5 MTPA plate mill and a 0.6 MTPA pipe mill in Hazira to make further value addition to its product portfolio. The company produces the following products:
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Iron Ore Pellets Hot Briquette Sponge Iron (HBI) Hot Rolled Product

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ESSAR SHIPPING & LOGISTICS Essar Shipping Ports & Logistics Ltd is an end-to-end logistics provider with sea and surface transportation services, oilfield drilling services, dry and liquid terminals, tankage and associated pipelines. It provides supply chain management services to client in oil and gas, steel and power generation industries. The sea transportation business provides transportation management services for a crud oil and petroleum products, and dry bulk cargo to global energy, steel and power industries. With an experience of more than 220 ship years, it owns a diverse fleet of 26 vessels, which

is being expanded to 38 vessels. The ports and terminals business is among Indias largest owners and operators of ports and terminal facilities. The operations include an oil terminal in Vadinar and bulk terminal in Hazira and Salaya, all in the state of Gujarat. Vadinar which is an all-whether, deep-draft port, serves major oil refineries and independent cargo traders in the region. The terminal has crud receiving capacity of 32 MTPA and sea-based product dispatch capacity of 14 MTPA. The port at Hazira has a capacity to handle 8 MTPA of bulk cargo. This will be enhanced to 25 MTPA through building a shipping channel that can birth larger vessels. The enhanced capacity will not serve the expansion in the Hazira steel plant, but also cater to the needs of the up coming Essar SEZ units. The business is also building a port, of about 20 MTPA capacities, at Salaya comprising a bulk and liquid terminal with container handling facilities. The logistics business provides end-to-end logistic services from ships to ports, lighterage services, intra-plant logistics and dispatch of finished products. It owns trans-shipment assets to provide lighterage support services, and onshore and offshore logistic services. It also operates a fleet of 4200 trucks (of which 38 are owned) to provide in land transportation of steel and petroleum products. Essar oilfields services offer onshore and offshore contract drilling, and offshore construction services. It has invested USD 400 million in purchasing drilling equipment and owns 12 onshore rigs, and offshore semi-submersible rig.

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ESSAR PROJECTS Essar Projects is a 4000 people strong global engineering procurement and construction company headquartered in Dubai. It has offices in India, China and the Czech Republic. It provides complete construction solution under one roof. It operates through five main businesses:  Essar Construction: This division has over four decades of experience in executing projects involving industrial plants, civil and irrigation projects, laying of onshore pipelines, and highway and expressways. With a pipeline division certified at ISO 9001, it has developed capabilities to undertake turnkey projects.

 Essar Offshore Subsea: The marine construction expertise within Essar oil, Essar shipping, Essar project and Essar construction has now demerge in to a single entity namely Essar Offshore Subsea Ltd (EOSSL). The business provides Engineering Procurement, Construction and Installation (EPCI) services in this sector in domestic as well as overseas markets. In the high-growth oil & gas sector, EOSSL provides EPC service for offshore logistics support and marine construction projects.  Global Supplies: The global supplies team specializes in procurement, with a presence in India, Chine, Middle East and Europe. It has excellent relationships with vendors across the globe, giving it the ability to procure materials in a timely manner and at a competitive price.  Heavy Engineering Services: Has modern facilities for manufacturing pressure vessels, reactors, vacuum vessels, cranes etc. the business is strategically located in the waterfront at Hazira on the west coast of India.  Project management Consultants: An independent team of project management consultants ensures compliance to processes in project execution. The team is also pitching for third party projects.  Essar projects also own a vast bank of sophisticated construction equipment used in large projects.

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ESSAR I.T & COMMUNICATION

Essar has entered into a joint venture with Vodafone Plc called Vodafone-Essar for providing Cellular Services in India. This Joint venture is playing a major role in Indias communication Industry, connecting people all over India with world class network coverage and leading edge services at affordable prices. Vodafone-Essar is the 2nd largest Pvt. Player in Indian Cellular industry with over 32million subscriber across the country. On I.T. Front Essar has incorporated Aegis Communication Group which provides multichannel customer relationship management, including database management, analytical services and market intelligence to progressive companies. Aegis has a strong team of 13000 Employees and provides services to blue-chip and multinational companies through a network of nine clients services in US and ten in India. Essar has launched Indias first national chain of multi-service outlets in the telecom retail space. The Mobile Store ltd currently runs over 1300 The Mobile Store outlets. Over 2500 Stores outlets are expected across 650 cities. Essar telecom infrastructure is one of the largest independent telecom infrastructure service providing companies in the country. It builds telecom tower infrastructure and shares it with several telecom operators in India. It has already set up over 3500 towers in India, with plans to build 20,000 towers.
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Vodafone-Essar one of Indias most valuable telecom companies Building telecom tower infrastructure The Mobile Store One Stop Mobile Solutions

Aegis, an integral part of Indias business process outsourcing revolution

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Essar Oil Limited Products & Services Product LPG SKO ATF Furnace oil (180 Cst / 380 Cst) Bitumen feed stock Sulfur MS (BS II, BS III) HSD (BS II, BS III) Application Domestic fuel Domestic fuel Commercial airlines, defense services DG set, boiler, furnace, marine Process, industrial Chemicals industry Automotive fuel Automotive fuel, industrial, DG set

Major Competitors in Oil Retail Business 1. Indian Oil Corporation Ltd. Indian Oil Corporation Ltd. is India's largest company by sales with a turnover of Rs. 271,074 crore and profit of Rs. 10,221 crore for the year 2009-10. It is Indias largest commercial enterprise, ranking 125th on the Fortune Global 500 list in 2010. Indian Oil and its subsidiaries account for a 47% share in the petroleum products market, 40% share in refining capacity and 67% downstream sector pipelines capacity in India. The Indian Oil Group of Companies owns and operates 10 of India's 19 refineries with a combined refining capacity of 60.2 million metric tons per year. Indian Oil operates the largest and the widest network of fuel stations in the country, numbering about 17606 (15557 regul ar ROs & 2049 Kissan Sewa Kendra). It has also started Auto LPG Dispensing Stations (ALDS). It supplies Indane cooking gas to over 47.5 million households through a network of 4,990 Indian distributors. Marketing Network - Reaching out to a Billion Hearts Indian Oil has one of the largest petroleum marketing and distribution networks in Asia, with over 35,000 marketing touch points. Its ubiquitous petrol/diesel stations are located across different terrains and regions of the Indian sub-continent. From the icy heights of the Himalayas to the sun-soaked shores of Kerala, from Kutch on India's western tip to Kohima in the verdant North East, Indian Oil is truly 'in every heart, in every part'. Indian Oil's vast marketing infrastructure of petrol/diesel stations, Indane (LPG) distributorships, SERVO lubricants & greases outlets and large volume consumer pumps are backed by bulk storage terminals and installations, inland depots, aviation fuel stations, LPG bottling plants and lube blending plants amongst others. The countrywide marketing operations are coordinated by 16 State Offices and over 100 decentralised administrative offices.

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2. Bharat Petroleum Corporation LTD Bharat Petroleum Corporation Limited (BPCL) is one of the largest state-owned oil and gas company in India, with Fortune Global 500 rank of 287 (2008). Its corporate office is located at Ballard Estate, Mumbai. As the name suggests, its interests are in downstream petroleum sector. It is involved in the refining and retailing of petroleum products.

Bharat Petroleum is considered to be a pioneer in Indian petroleum industry with various path-breaking initiatives such as Pure for Sure campaign, Petro card, Fleet card etc. BPCL's growth post-nationalisation (in 1976) has been phenomenal. One of the single digit Indian representatives in the Fortune 500 & Forbes 2000 listings, BPCL is often referred to as an MNC in PSU garb. It is considered a pioneer in marketing initiatives, and employs Best in Class practices. Bharat Petroleum Corporation Limited (BPCL) is a modern refining and distribution company. It vies with Hindustan Petroleum for the #2 slot behind Indian Oil. The company refineries -- in Mumbai, Kochi, and Numaligarh (69%-owned) -- collectively process about 22.2 million metric tons of crude oil per year. BPCL sells engine oils and gasolines, liquefied petroleum gas (LPG), and kerosene implying a market share of 20.55%, second largest in India. It has more than 8,400 gas stations, a national network of kerosene dealers, and more than 2,110 LPG distributors. The Indian government owns 55% of the firm, although it plans to eventually sell this stake as part of industry wide deregulation.

3. Hindustan Petroleum Corporation LTD HPCL is a Fortune 500 company, with an annual turnover of Rs. 1,08,599 Crores and sales/income from operations of Rs 1,14,889 Crores (US$ 25,306 Millions) during FY 200910, having about 20% Marketing share in India and a strong market infrastructure. HPCL operates 2 major refineries producing a wide variety of petroleum fuels & specialties, one in Mumbai (West Coast) of 6.5 Million Metric Tonnes Per Annum (MMTPA) capacity and the other in Vishakapatnam, (East Coast) with a capacity of 8.3 MMTPA. HPCL holds an equity stake of 16.95% in Mangalore Refinery & Petrochemicals Limited, a state-of-the-art refinery at Mangalore with a capacity of 9 MMTPA. In addition, HPCL is constructing a refinery at Bhatinda, in the state of Punjab, as a Joint venture with Mittal Energy Investments Pte. Ltd.

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HPCL also owns and operates the largest Lube Refinery in the country producing Lube Base Oils of international standards, with a capacity of 335 TMT. This Lube Refinery accounts for over 40% of the India's total Lube Base Oil production. HPCL's vast marketing network consists of 13 Zonal offices in major cities and 101 Regional Offices facilitated by a Supply & Distribution infrastructure comprising Terminals, Aviation Service Stations, LPG Bottling Plants, and Inland Relay Depots & Retail Outlets, Lube and LPG Distributorships. HPCL, over the years, has moved from strength to strength on all fronts. The refining capacity steadily increased from 5.5 MMTPA in 1984/85 to 14.8 MMTPA presently. On the financial front, the turnover grew from Rs. 2687 Crores in 198485 to an impressive Rs 1,16,428 Crores in FY 2008-09. 4. Reliance Petroleum LTD The only other private sector competitor that Essar Oil LTD has is Reliance Petroleum Limited. Reliance Petroleum Limited (RPL) is a subsidiary of Reliance Industries Limited. RPL was initiated in 2005 to harness the tremendous value creation opportunity in the global refining sector by RIL. RPL was created in order to set up a Greenfield petroleum refinery and polypropylene plant in the SEZ at Jamnagar in Gujarat. Reliance currently has Asias largest oil refinery held by a private company located very near to Essars refinery in Jamnagar Gujarat. It is the largest refining complex with an aggregate refining capacity of 1.24 million barrels of oil per day in any single location in the world. RPL is also engaged in Oil retail through its Retail outlets mostly located in Gujarat and Maharashtra. A few years ago many of its outlets were closed down due to low profit margins. But now as the petrol price are set free by the government, RPL is planning an expansion mode and has considered re-opening of its closed outlets. Currently only 600 of its 1400 outlets are active.

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Project Definition

WHAT IS NFR (NON FUEL RETAIL) BUSINESS?

Non-Fuel Retail: An emerging Business Model One can see conventional market places in high streets and malls, but apart from that retailers are also interested in non-conventional area such as airports and railway stations for their expansion. At present due to unique facilities provided by these retailers at these outlets enabled high density of footfalls. So retailers thought petrol pumps to be the better places for their business plan. In earlier nineties, Bharat ESSAR Ltd, joint venture between Bharat Petroleum and ESSAR Overseas Investments of Netherlands, launched the first convenience store at its outlets and given a sign of new emerging business model. So oil companies are concentrating on more customer needs and they are involved in activities in providing all necessary facilities. Hence the days of what the petrol pumps was vehicle-related is slightly converting into new business model and coming up with facilities ranging over convenience store, laundry, courier, medicines, flowers, fresh fruits, insurance, fast food etc. The purchasing of petrol is totally uninvolved process, so by enhancing such facilities would add value. In India this model of transformation is going on and would definitely in coming days it would contribute more to the retail and have wide range of services. And this provided all the oil companies to enter into the tie-up with the convenience stores, so petrol destinations are now one of the preferred destinations. After filling their vehicles, customers have no time to wait and they prefer fast service. McDonalds has tied up with HPCL and BPCL, Caf Coffee Day has partnership with BPCL and HPCL. IOC has tied up with Dominos Pizza; hence these initiatives would definitely going to cater the needs of the customers. Since retail in India is gaining momentum, this model would offer convenience to the customers and would be a profit centre for the company. If you talk about outlets on highways, there the prime need of the customers is the refreshment and people look for food points and toilets in hygienic conditions. These outlets will provide non-fuel facilities like shopping, eateries and entertainment. Due to the art of infrastructure facilities of oil companies will attract customers and restaurants in this outlet will provide relaxing destinations for the travellers. Apart by catering the exact needs of the customers will be profitable business, like Caf Coffee Day by offering varieties of coffees. The biggest advantage of this business model is the ever-increasing price of real estate and such retail venues become more reasonable options. Also maintenance cost is cheaper compare to outlets in mall and busy market. And more importantly such tie-up would result in cross-promotion of both the brands. The retailing format will vary from place to place like in heart of city ATM and STD can be a good option, in highway as already discussed. But in rural areas since people are mostly engaged in agriculture, so company offer products according to their needs like HPCL has tie-up with Godrej Agro-vet Ltd and the outlets offer fertilizers etc and also IOC has Kisan

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Seva Kendra where agro-based products like seeds, fertilizers and pesticides are made available. If one is talking about the revenue share and the profit which both party will get from this model is that a certain percentage of turnovers will go to companies share and also the rentals. And for retailers since the retail space is cheaper, they would have better return on investment. So in future this model is definitely going to serve the purposes of the customers by providing best services and will be more convenient for them. As such food joints have good future as well as impulse goods and car care products. So beverages, chocolate, ready to eat items, personal care products and diet products which is in demand, can serve better for the customers. Items not popular in these business format are electronic goods, music, cassettes, cosmetics, toys and gifts will face challenges. But overall the business format has good future and in coming days better implementation can be done. So if we analyze Oil Company could have strategies in three models- one is non-fuel retailing at their retail outlets, second is fuel at malls and the third is whether they should look at entering non-fuel retail as a business model.

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Essar Oil Ltd (EOL) is sharpening focus on its non-fuel retail business, even as it is stepping on the gas for expanding its pan-India retail presence. Even though non-fuel retail at present accounts for a miniscule share, the company is using this route to increase footfall and achieve higher customer recall value, apart from making profitable use of its retail sites. As we are on a start off mode, our focus now is to take care of the franchises, even as we talk to new brands to come on board. Going forward, we expect this activity to generate about Rs 1.5 crore a year, said Mr S. Thangapandian, the company's CEO, and Marketing. The company has about 1,300 outlets, and plans to open 200 more in different States in the next three months. A bulk of its petroleum products is sold in Gujarat, where its refinery is located at present it sells about 150 kilo litre of petrol and diesel in the State per month, with a market share of 9 per cent. At the national level, its share is under 3 per cent. In terms of price, we are selling our products at par with other PSU oil companies in seven States. In the remaining States, the difference (in pricing) varies from Rs 0.50 to Rs 2 per litre for MS (motor spirit or petrol) and HSD (high speed diesel), Mr Thangapandian told Business Line. Even while expanding its network, the company, in the last three to four months, has been pushing hard on its non-fuel retail, tying up with 10-15 brands across categories such as automobiles, lubricants, agro-chemicals, banking, telecom, FMCG and food and beverages, as franchises. In the coming months, it hopes to bring on board more brands in new categories. A franchisee model, with different revenue sharing models, has been worked out between Essar and the different brands. The existing franchises range from Amul and Pepsi to ATM machines of SBI and Weizmann Forex, a leading money changing organisation in India. In fact, Weizmann will be opening its branches in 20 Essar outlets in Kerala, where there is a sizable NRI population. Most of the retail alliances are driven by requirements of the target customers, the potential of the target market and the geographical location of the site, said Mr Thangapandian. For example, it has tied up with a popular take-away biriyani brand Hyderabad House, for one of its outlets in Hyderabad, while it has taken on board Rallis and National Seeds Corporation for some of its town and rural outlets. After Gujarat, Amul is now expanding to Essar's outlets in States such as Maharashtra, Madhya Pradesh, Uttar Pradesh and Andhra Pradesh. EOL also recently entered into an agreement with Aegis Logistics for auto LPG business as part of its non-fuel retail strategy, while Exide Batteries is opening a shop-in-shop at several of its outlets. More than the revenue through the non-fuel retail business, we see this as a platform to deepen the relationship with our customers, he said

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Private sector oil major Essar Oil has tied up with Sabarmati Gas for auto CNG distribution in Gujarat. Essar is also in talks with GAIL for CNG distribution. The company has also entered into auto LPG business in partnership with a number of players, including Aegis Logistics.

Facilitating supplies Sabarmati Gas, a joint venture between Gujarat State Petroleum Corporation (GSPC) and Bharat Petroleum Corporation Ltd (BPCL), will set up CNG dispensing units in Essar outlets in the State. We will begin with five units, said Mr S. Thangapandian, Chief Executive Officer (Marketing), Essar Oil, told Business Line. Meanwhile, the company has drawn out a big plan for auto LPG distribution. Essar has signed a MoU with Aegis Logistics for auto LPG supply. Aegis has an LPG import facility in Mumbai from where it will supply the auto gas to Essar, which in turn will market it in States including Gujarat, Madhya Pradesh, Rajasthan and Maharashtra. The company is also in talks with Elf Gas India Ltd to distribute auto LPG in Tamil Nadu and Karnataka. While Essar has allowed the auto CNG distributors to set up their own dispensing units in its retail outlets, the business model for auto LPG sales is different. Essar itself takes care of the distribution and marketing of auto LPG

22

Indi n Oil Corporation is driving full speed ahead in pursuit of its non-fuel retailing ambitions. Even as Technopak India, the consultant appointed to suggest a strategyfor its entry into nonfuel retailing, prepares to submit its report by this month-end, IndianOil has tied up with the Future Group (formerly Pantaloon ) to set up ServoXpress shops in the latter's existing and upcoming malls.

The ServoXpress outlets will offer services such as battery/oil check, oil and coolant change, tyre pressure check, A/C service, vacuum cleaning, perfuming, cleaning and polishing.

Simultaneously, the company has also started leveraging its 5,000 -strong cooking gas distributor base to sell products such as rubber hoses, gas stoves, kitchen equipment, water filters and fire retardants to its 4.5 lakh Indane customers. Revenues from such sales, mainly sign-up fees from the dealer plus margin on the products sold, added up to Rs 180crore in 2006-07, and IndianOil is seeking to double that this year and take it to Rs 1,000 crore in three to four years' time. The Future Group alliance will initially begin with four cities Vadodara, Hyderabad, Pune and Bangalore apart from Mumbai, where the first such outlet was inaugurated last week in the Orchid City Centre mall. Even as IndianOil sets up its outlets in malls belonging to the Future Group, the latter will set up its Food Bazaar and convenience stores in selected retail outlets belonging to IndianOil.

23

Project Objective The objective of our study is to make the Non Fuel Retail setup plan at the station s given to me for Research and finding at my optimal level.

Data collection To make our study more on the practical based and no theoratical all the data we used is primary and secondary and collected by analysing each stage of process.

METHODOLOGY In order to get a real outlook regarding a need for CRM implementation at Retail Fuel Stations, a lead of various Primaries, Secondary Research & Methodology has been designed.

Some Parts of the Lead being:

Questionnaires. Observation Findings Feedback Marketing Concepts

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CUSTOMER FEEDBACK

OFF SITE CUSTOMER RESEARCH (SURVEY) 1. Which Fuel Station do you usually go to get your vehicle refuelled? __________________________________________________________________ 2. Do you visit? a) Only One Fuel Station. b) More than One less than Five. c) Any fuel station.

3. What is the reason for selecting the Fuel Station? a. Close/ on the way to your Residence / Office. b. Have Loyalty Card. c. Quality of Fuel. d. Driveway Attendants. (Service Rendered). e. Vehicle Water Servicing. f. Other Services (IF, THEN WHAT___) g. All the Above.

4. What all services do you avail at the Fuel Station? a) Only Vehicle Refuelling. b) Tyre Air Pressure Check. c) Vehicle Oil. d) Convenience Store. e) ATM. f) Vehicle Water Servicing. g) General Clean Up (Window Panes etc.)

25

5. What is the usual Mode of Payment? a. Cash b. Credit / Debit Cards c. Special Credit cum Loyalty Cards d. Petro Cards

6. Do you trust upon the Fuel Quality & Quantity purchased by you at Fuel Station of your Choice? a) YES b) MAY BE c) NO d) Does not Matter 7. Do you prefer any other services to be provided in the petrol station? a) YES b) NO c) No Idea

8. Do you find any difference in the Quality of Fuel at different Fuel Stations? a) YES b) NO

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9. Prioritize your Needs for Selecting a Fuel Station? (From 1 to 10, 1 Being Top Priority) a. Quantity & Quality of Fuel. b. Driveway Attendants. c. Convenience of Location. d. Convenience Store. e. ATM. f. Provision of Loyalty Benefits. g. Free Glass Clean Up. h. Vehicle Water Servicing. i. Variants of Fuel. j. Other related Products & Services {Oil, PUC, Tire Air Pressure Check etc.} k. Others (Please Specify and Rate) _______________________________

NAME: Profession: Vehicle Held:

Avg. Fuel Consumption per Month:

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ON SITE CUSTOMER RESEARCH (SURVEY): {ESSAR STATION} 1. Do you often Visit ESSAR Fuel Station. How many times per Month?

2. Why do / did you visit ESSAR petrol station?

1. Quality & Quantity of Fuel. 2. Brand Name. 3. Convenient Location. 4. Driveway Attendants. 5. Others 6. Refuel was required on priority.

3. Are you satisfied with the services that are rendered to you at ESSAR? a) YES b) NO c) Partly satisfied

4. Do you believe in the Quality & Quantity of Fuel that is provided in here? a) YES b) NO c) Cant Say 5. Do other services like CAR WASH, CONVENIENCE STORE, Good Drive way Attendants attract you towards this station? a) YES b) NO c) MAY BE

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QUESTIONNAIRE MANAGER AT ESSAR FUEL STATION

1. What is the Stations major Factor making customer drive in?

2. What extra services do you provide for your customers?

3. How much usual storage of extra fuel is always there at station? 4. What is Max Storage of Fuel at the station?

5. Does customer come here only for refuelling or any other service?

6. Do you maintain complaint book?

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Findings A: Customer Perception

Customers Priority based Perception on all Supporting Services

Overall Customers Priority for Supporting Services

Priority 1
ATM Refreshments Medical Store Vehicle Services Convenience Store Extended Services

11%
13%

23%

17%

20%

16%

Customers Priority for Type of Refreshments

Refreshments
Only Snacks & Drinks Fast Food Centres Branded Outlets(Pizza Hut; Mc Donalds)

33%

32%

35%

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Customer Priority over Vehicle Services to be Offered

Vehicle Services
Pollutin Check Facility Automobile Accessories

27%

39%

Customer Priority over E tended Services to be availed

Extended Services
Courier Services PCO/FAX/XEROX
Advt. AT Petrol Pump

Ticketing Services ooks/Magzine/News Paper Stalls

Fore Court Promotion of arious Products

11% 14%

18% 19%

24% 14%

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ehicle Check-Up; Lubricants; attery; Wheel, etc

34%

RESULTS / ANALYSIS OF SURVEY AND OBSERVATION

SURVEY RESULTS

Off Site Customer Research (Survey) Results (Survey Size 100)

1. Which Fuel Station do you usually go to get your vehicle refuelled? Various, the highly visited fuel station being Indian Oil petrol station and Bharat petrol pump

2. Do you visit? a. Only One Fuel Station (61%) b. More than One less than Five. (23%) c. Any fuel station. (16%)

3. What is the reason for selecting the Fuel Station? a. Close / on the way to your Residence / Office. (67%) b. Have Loyalty Card. (4%) c. Quality of Fuel. (21%) d. Driveway Attendants. (Service Rendered) (2%) e. Vehicle Water Servicing. (0%) f. Other Services (Free Cleaning, Convenience Store) (2%) g. All the Above. (4%)

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4. What all services do you avail at the Fuel Station? a) Only Vehicle Refueling. (88 out of 100) b) Tyre Air Pressure Check. (70 out of 100) c) Vehicle Oil. (20 t0 30 out of 100) 2 wheeler oil d) Convenience Store. (22 to 25 out of 100)(Used, no more) e) ATM. (70 out of 100) f) General Clean Up (Window Panes etc.) (Would Take, if knew where)

5. What is the usual Mode of Payment? a) Cash (72%) b) Credit / Debit Cards (35%) c) Special Credit cum Loyalty Cards (4%) d) Petro Cards (5%)

6. Do you trust upon the Fuel Quality & Quantity purchased by you at Fuel Station of your Choice? a) YES (5%) b) MAY BE (92%) c) NO (2%) d) Does not Matter (1%)

7. Do you prefer any other services to be provided in the petrol station? a) YES (Option for Mobile Battery & Account Recharge, ATM, and service station and other services) b) NO c) No Idea (97%)

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8. Do you find any difference in the Quality of Fuel at different Fuel Stations? a) YES (33%) b) NO (67%)

9. Prioritize your Needs for Selecting a Fuel Station? (From 1 to 10, 1 Being Top Priority) a. Quantity & Quality of Fuel. (2) b. Driveway Attendants. (4) c. Convenience of Location. (1) (Majority) d. Convenience Store. (7) e. ATM. (4) f. Provision of Loyalty Benefits. (6) g. Free Glass Clean Up. (7) h. Vehicle Water Servicing. (9) i. Variants of Fuel. (5) j. Other related Products & Services. (3) k. Others (Please Specify and Rate)

Avg. Fuel Consumption per Month:

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ON SITE CUSTOMER RESEARCH (SURVEY) RESULTS: {ESSAR STATION}

1. Do you often Visit ESSAR Fuel Station. How many times per Month? 20% Yes 52% NO (Sometimes) 27% First Time

2. Why do / did you visit ESSAR petrol station? a) Quality & Quantity of Fuel (52%) b) Brand Name (17%) c) Convenient Location. (On way to work Place or Residence). (42%) d) Driveway Attendants. (19%) e) Others (Suggested to Visit) (12%) f) Refuel was required on priority (18%)

3. Are you satisfied with the services that are rendered to you at ESSAR? a) YES (30%) b) NO (40%) c) Partly satisfied (58%)

4. Do you believe in the Quality & Quantity of Fuel that is provided in here? a) YES (74%) b) NO c) Cant Say (26%)

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5. Do other services like CAR WASH, CONVENIENCE STORE, Good Drive way Attendants, Restaurant, other facilities attract you towards this station? a) YES (60% if available) b) NO c) May Be (Attendants) (29%)

Avg. Fuel Consumption per Month:

36

QUESTIONNAIRE RESULTS (MANAGER AT ESSAR FUEL STATION)

1. What is the Stations major Factor making customer drive in? Ans: Its Location, Brand & Quantity & Quality of Fuel (ESSAR).

2. What extra services do you provide for your customers? Ans: Lubricants are made available and for cars free glass clean up - ESSAR. Lubricants -

3. How much usual storage of extra fuel is always there at station? Ans: no ans.

4. What is Max Storage of Fuel at the station? Ans: Tanks Capacity (Including tanks for Variants). Avg: 20 thausand Ltrs

5. Does customer come here only for refueling or any other service? Ans: Mostly for Fuel only, very rare for Lubricants only and other services if avail.

6. Which the most frequently used mode of payment? Ans: CASH & CREDIT and DEBIT CARDS

37

7. Any future strategy to increase customer drive in? Ans: Station is company owned - all directives from Company ESSAR.

8. Do you prefer customer retention or new customers? Ans: BOTH

9. Completely Automated Filling Machines & Station. Ans: Yes

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ANALYSIS

1. The Consumers do not have a major requirement at the Fuel Station.

2. The Customer selection of a Fuel Station mostly depends upon the Convenience to them.

3. There Resembles no Brand Loyalty among the Customer.

4. Customers are tending towards Quality of Fuel & the pleasing Driveway Attendants and available services.

5. Most of the consumers carry a no problem attitude, i.e. a very undemanding and careless attitude.

6. In the preview of entrance of private sector a definite Competition has been raised which would be tougher to fight once the Price Control and the subsidies given to PSUs by Govt. is completely removed.

7. Due to the lack of Customers Survey Information, Customer Data and Huge No. of Customers; it became impossible for Oil Retailing Firms to come with any innovative strategy to tap the growing customer base & build a brand loyalty within the customers.

8. Retailers dont bother of customer satisfaction or growing customer base, just because there margins are fixed on a very low rate, rather than thinking of How to Raise Revenues?, Utilize the Extra Space available with them.

39

SUGGESTIONS TO THE OIL RETAILING FIRM & RETAILERS: FUTURE VISION

1. Emergence of non-fuel services as a major activity at retail outlets The dismantling of APM has removed the privilege of assured returns from the PSUs and thus, it has increased pressure on their margins, as to compete with the private players, who are with deep pockets, it is imperative to make huge investment in the services being offered at the ROs. Since the base product is same, the differentiating factor would be the non-fuel services. Also, the changing face of the Indian consumer is one of the main reasons behind the non-fuel services in petro-retailing. Today, he is looking at a one stop solution to all his needs buying groceries, withdrawing cash from his bank, making utility payments, renewing his insurance cover, grabbing a quick bite, obtaining Pollution Under Control Certification and of course filling fuel in his car. On the other hand the driver on the highways is seeking a clean and hygienic place to relax and freshen-up, service his vehicle and have a good meal at the restaurant in the pump.

2. Loyalty programs an integral part The immense competition will make loyalty programs an integral program of the day to day functioning of petro-retailing. Of course, right now many such loyalty programs are being run by the petro-retailers like Smart Fleet (BPCL), Xtrapower (IOCL), Drivetrack (HPCL), Transconnect (Reliance), Petrocard (BPCL) and others. However, these programs are mainly focused at the bulk consumers and the small consumers are left unnoticed more or less. But in future, there wont be such differentiation and loyalty programs will be there for every segment of consumers.

3. Competition on price Price was till recently not a differentiating factor in Indian market because prices were same for all the companies. However, with private players coming into the market, the picture has changed. ESSAR is a glaring example of this. In the future when the market determined pricing mechanism will come into full effect, we will see the focus of competition shifting from Q&Q to price.

4. Adoption of New Retail Skills In the changed scenario, petro-retailers will have to take a look into the retail skills they have and accordingly have to make adjustments in that. Network optimization, Proposition/Brand Management, Dealer Management, Site Operations Management, Partner Management, Customer Relationship Management etc. are some of the skills that should be incorporated to succeed.

40

5. Alternate sources of Revenues The growing competition will increase pressure on margins and therefore, the retailers will seek for alternate sources of revenue, taking examples of foreign experiences. To taste success in this, retailers need to develop a sustainable non-fuel model which should synergize with core fuel business and not detract. However, strategic foresight is one thing but what matters most is the superior execution of those strategies and this is the factor which shapes core competency for a company that is hard to replicate by the competitors.

41

PROJECT:-IN DETAIL

PETROL PUMPS NAMES WHICH I VISITED AND RESEARCHED.

1) Ganesh petroleum: - kalol

2) Amarnath petroleum: - Bhatt

3) Gajanand petroleum services: - Chiloda

4) Parin petroleum services: - Bhavla

5) Dev petroleum : - Dodka 6) Akshar petroleum services: - Kadi

7) Balaji petroleum: - Mehsana

8) Krishna petroleum: - Kheda

9) Krishna-Deep petroleum: - Nadiad

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1) Ganesh petroleum: - Kalol = Avg. sale of petrol is 500-600 litres per day = Main customers are 2 wheelers =Current price of petrol is 67.96 and diesel 51.23 in kalol(Diesel not in selling) =In front of ESSAR pump there is BHARAT petro pump =Which contain good food court =There are no ATMs nearby any pump on that road =And aside Essar pump there is showroom of Maruti cars =The whole area is GIDC area and city is 1.5 km away from pump

Facilities available HDFC card swapping machine Sanitation Puncture Lubes (Oil pouches only) Amul shop was opened, but closed in some days (Amul didnt work their)

Facilities can be opened in future

(1) ATM facility (SBI) - there is no ATMs nearby ATM service as a non fuel revenue service can be beneficial as people in today busy world dont have time to wait for long hours in queue. Thus by providing ATM service company can get handsome revenue in form of rents.

43

(2) Pepsi Shop can be open (Because of theatre nearby crowd get attracted through Beverages) By opening Pepsi shop there, it will definitely attract footfalls around 30 to 45 of customers and can help in gaining profit for both dealer and company on the monthly sales of rupees around 12000/- to 15000/-.

(3) Mobile store can be open for recharge purpose The mobile shop will definitely avail profit to dealer and company in form of rent of the shop and sales done by the mobile store. This facility will attract approx. 50 to 70 customers on the pump.

Conclusion:- All this services called Non-Fuel retail setup and it may increase sales of the fuel around 80 to 100 litres more a day which is our ultimate goal.

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2) Amarnath petroleum: - Bhatt

=Work under construction =Avg. selling of petrol 500 litres = Main customers are 2 wheelers =Land area is very gud in front of APOLO hospital on highway =The DENA bank had setup the ATM facility but machine yet not cum =There is MOTHER dairy (AMUL) shop around 2 km away from pump and village. So, if amul shop can be placed on our pump then it can save 2 km of customer to go there and buy the product. =There is no tyre service on that highway, so, we can place JK tyre service because many heavy passed by that highway may need tyre service. =The highway and land is good but Restaurant cannot be open or set up because in front of there is very famous Restaurant and party plot is present already.

Facilities available HDFC card swapping machine ATM of DENA bank (opening shortly)

Facilities can be ADDED in future (1) JK tyre service As this is most primary service which customer is mostly looking for and including tyre air pressure, as our all pumps are on highways including these pump also, so definitely heavy vehicles and cars customers get attracted and generate profit for dealer and company shared according to their margin.

45

(2) Amul store The Mother dairy is 2 km away from pump on the highway, by opening Amul store on pumps land will est. attract customer around 60 to 70 total. This facility will avail customer of nearby villages to save their total 4 kms and this will increase our sales on amul shop and indirect fuel also. The revenue generate from this activity may earn 40000/- to 55000/- in a month.

Conclusion:- Both services may increase sales of the fuel around 40 to 50 litres more a day which is our ultimate goal.

46

3) Gajanand petroleum services: - Chiloda =Avg. selling of petrol is 1500 to 2000 litres =Petrol prices are 67.39 =CNG is going to start soon =Land area is very good and on way to go himmatnagar, highway. =Many tourist passed by their =There are 2 temples nearby pump so food court will be helpful for dinning, resting and refreshing. =Restaurant is situated aside by pump and owns by the owner of the pump, if we can start it on pump then it can beneficial for owner and company also. =Amul shop cannot be opened because there local dairy is running name MADHUR DAIRY and pump is situated outside of the village so crowd will not come to pump to buy the dairy product. =There are less demand seeds, fertilizers and pesticides. =Pepsi and Beverages store can also be beneficial. =ATM service can be established =Employees suggested Towing service for shut down cars can be setup. =On the same road there is pump of IBP, but no facilities are available on that. = if possible make working for 24 hour

Facilities available HDFC card swapping machine Tyre service (local) (for 2 wheelers) Lubricants

47

Facilities can be ADDED in future

(1) JK tyre service As this is most primary service which customer is mostly looking for and including tyre air pressure, as our all pumps are on highways including these pump also, so definitely heavy vehicles and cars customers get attracted and generate profit for dealer and company shared according to their margin. (2) Restaurant with Beverages Eating joints at petrol pumps have proved to be the most popular destinations as revealed by all the oil companies. After filling their vehicles, customers here have no time to wait and they prefer fast service. Other food-joints like McDonalds, Caf Coffee Day and Subway are following the example. A gas station with a coffee shop is a welcome concept as one can execute two different tasks at the same time. We also reveals that this kind of retail mode is definitely having a contribution to their overall brand image. The model offers convenience for customers and proves to be a distinct mode of revenue generation. For highway travellers, refreshment comes as the first priority. (3) ATM (SBI) ATM service as a non fuel revenue service can be beneficial as people in today busy world dont have time to wait for long hours in queue. Thus by providing ATM service company can get handsome revenue in form of rents.

Conclusion:- Avg. selling of petrol is 1500 to 2000 litres will est. reach to the 2000 to 2150 litres in future after setting up this facilities on the pumps land and can be help in generating sales of Rupees 6000/- to 7000/-.

48

4) Parin petroleum services: - Bhavla

=Petrol rate is 67.37 and diesel rate is 51.15 per litre =Huge requirement of diesel =There are some hotels near our pump so; another food is not worth to open =And are many pump of IBP, BPCL, IOC on that highway with good facilities = (SBI) ATM also cannot be set up because its already there in city and as per the rule of bank there should not be any another ATM of same bank in diameter of 5 KMs. =BUT PNB (Punjab National Bank) ATM can be setup but need to more or heavy marketing to inform the customers. =Aside our pump there is service station of cars so, it is not worth to open battery service.

Facilities available HDFC card swapping machine Tyre service (local) (for 2 wheelers) Lubricants Telephone and sanitation Having licenced of Excide Western Union Suvidha

But there are lack of customers

49

Facilities can be ADDED in future

(1) ATM (SBI) ATM service as a non fuel revenue service can be beneficial as people in today busy world dont have time to wait for long hours in queue. Thus by providing ATM service company can get handsome revenue in form of rents.

(2) If CNG starts then Service Station for CNG vehicles

Conclusion:- Both services may increase sales of the fuel around 20 to 25 litres more a day which is our ultimate goal.

5) Dev petroleum: - Dodka =The pump is temporarily closed =The only petrol pump on that road of Dodka to Ahmedabad =Land is very good and can be utilize for multiple services ca be avail.

Facilities available HDFC card swapping machine Lubricants (oil pouches) Sanitation

50

Facilities can be ADDED in future

(1) ATM (SBI) ATM service as a non fuel revenue service can be beneficial as people in today busy world dont have time to wait for long hours in queue. Thus by providing ATM service company can get handsome revenue in form of rents. (2) If CNG starts then Service Station for CNG vehicles

Conclusion:- Now the Pump has reopened and by providing this services we can attract more customer to come for filling up their vehicle and may can lead to more sale which will generate Non Fuel Revenue in form of Rent .

51

6) Akshar petroleum services: - Kadi = Avg. sale of petrol is 800 litres per day = Main customers are 2 wheelers =Avg. customers are 200 to 230 =There are no ATMs nearby any pump on that road =And aside Essar pump there is showroom of Tyre Companys so, it is not worth to set up a tyre service =The whole area is INDUSTRIAL area and city is away 1 km away from pump =Place of pump is very good and well maintained many

Facilities available HDFC card swapping machine Sanitation Suvidha (not opened , no customer) Western union Lubes (Servo, ELF)

Facilities can be opened in future (1) ATM facility (SBI) - there is no ATMs nearby ATM service as a non fuel revenue service can be beneficial as people in today busy world dont have time to wait for long hours in queue. Thus by providing ATM service company can get handsome revenue in form of rents. (2) Restaurant(SMALL FOOD COURT):Small Food Court can be setup in right of the pump face towards the city can be help full in attracting customers to generate some profit and increase indirect sales of fuel. But on the right side the CNG setup is going to put in, so there will be no place to setup a food court. Yet CNG is the great idea to make more footfalls in the PUMP.

52

(3) Pepsi Shop can be open (Because of School nearby crowd get attracted through Beverages) By opening Pepsi shop there, it will definitely attract footfalls around 30 to 45 of customers and can help in gaining profit for both dealer and company on the monthly sales of rupees around 10000/- to 12000/-.

Conclusion:- Avg. selling of petrol is 800 litres will est. reach to the reach to 900 litres slowly in future after setting up this facilities on the pumps land and can be help in generating more sales of Rupees 6500/- to 8000/-.

53

7) Balaji petroleum: - Mehsana

=There are many AUTOMOBILES showrooms near our pump =And many good restaurant also but our pump land is too big and at good locations so, food court can be setup there. =There are 2 more pumps BPCl and IOC they also dont have any facilities =But the pump owner is not interest in any set up =SBI ATM is there on pump

Facilities available HDFC card swapping machine Sanitation Lubes (Servo) ATM (SBI)

54

Facilities can be opened in future

(1) Restaurant with (Beverages) facilities. This place seems to be very best place for Good Restaurant. Eating joints at petrol pumps have proved to be the most popular destinations as revealed by all the oil companies. After filling their vehicles, customers here have no time to wait and they prefer fast service. Other food-joints like McDonalds, Caf Coffee Day and Subway are following the example. A gas station with a coffee shop is a welcome concept as one can execute two different tasks at the same time. We also reveal that this kind of retail mode is definitely having a contribution to their overall brand image. The model offers convenience for customers and proves to be a distinct mode of revenue generation. For highway travellers, refreshment comes as the first priority. Hence In that area their many Restaurant But Est. Good Ambience Restaurant can attract more than 60 to 70 customers a day for Dinning and can create profit up to 8000/- to 9000/- rupees in future.

Conclusion:- The Restaurant Dining facility will estimated increase the sale of Fuel up to 100 150 litres a day and can make more sale of rupees avg. 6500/- .

55

8) Krishna petroleum: - Kheda

=Situated on Nadiad- Ahmedabad highway =Avg. sell of petrol is 500 litres = Customers are mostly 2 wheelers =Tyre service cannot be opened because there are many around pump and they are not working in profit =Battery service will also not for worth because there are 2 service stations nearby.

Facilities available HDFC card swapping machine Sanitation Lubes (Servo & Castrol)

Conclusion:- Currently every service is opened and available nearby this pump and they are also not gaining any profit and proper sales , so it better to do no investment there for short time till the CNG and Diesel is not going to start. After CNG and Diesel starts also for starting any Non Fuel Retail again research of that area is necessary.

56

9) Krishna-Deep petroleum: - Nadiad

=Petrol rate 67.24 and diesel rate 50.99 =Avg. Sells of 400to 450 litres =Avg. customers around 120 to 150 only =Amul and food court will not be help full because of local public and village area. =Tyre is there of other party. =Can cover good market of CNG when it starts in soon time

Facilities available Water Sanitation Lube Tyre

Facilities can be opened in future (1) HDFC card swapping machine This is the basic facility which every customer needs if they want make payment with their cards, so its necessary to set there The Swapping machine

57

(2) ATM (SBI) ATM service as a non fuel revenue service can be beneficial as people in today busy world dont have time to wait for long hours in queue. Thus by providing ATM service company can get handsome revenue in form of rents.

(3) Good space to set up service station for CNG vehicle

Conclusion:- By providing this services we can attract more customer to come for filling up their vehicle and may can lead to more sale which will generate Non Fuel Revenue in form of Rent. Other no service will work or profitable in that place.

58

CONCLUSION
The concept of Non Fuel Revenue has been an innovative revenue generation step taken by petroleum retailing companies operating in India. The concept of Non Fuel Retailing would turn out to be profitable and high revenue generating one if operated skilfully in Ranchi.

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LIMITATIONS
Single Researcher, made it a little hectic and time taking job. The Research has to be restricted for a limited period of given number of days. The actual information regarding the financial data and ventures of competitors firm was not achievable because of confidentiality purpose. Several factors like customer motive while giving the feedback and external environment factors which governed the feedback process also acted as limitations for the project.

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Prospects for Essar

Unlike Reliance, Essar has all of its retail outlets active right now. It is also currently the market leader in the private oil marketing companies with 3.5% market share out of the 5% total market share of the private firms. Its modern and state-of the art refinery at vadinar and its operational efficiency, helps to reduce its refining cost but the problem again that it faces and the reason behind most of its retail outlets in Gujarat, Maharashtra and Rajasthan is the high amount of transportation cost. If Essar finds a way out of this, it is sure to gain a huge market share in the near future. Moreover, good marketing and promotional activities and non-fuel activities would be the key to increase the foot-falls at the retail outlet.

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Bibliography

Websites: www.essar.com www.wikipaedia.org www.essarenergy.com www.business-standard.com http://www.deccanherald.com/content/77812/rules-game-oil-marketing

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