IHS, Asia LPG Seminar June 12-14, 2013 Singapore

LPG Market in India

IHS, Asia LPG Seminar

June 12-14, 2013
Singapore


Suyash Gupta - Indian Auto LPG Coalition

IHS, Asia LPG Seminar June 12-14, 2013 Singapore
Agenda
I. INDIAN AUTO LPG COALITION
II. LP GAS INDUSTRY
III. AUTO LPG INDUSTRY


IHS, Asia LPG Seminar June 12-14, 2013 Singapore
Agenda
I. INDIAN AUTO LPG COALITION
II. LP GAS INDUSTRY
III. AUTO LPG INDUSTRY


IHS, Asia LPG Seminar June 12-14, 2013 Singapore
IAC STAKEHOLDERS
IHS, Asia LPG Seminar June 12-14, 2013 Singapore
IAC MEMBERS
IHS, Asia LPG Seminar June 12-14, 2013 Singapore
Agenda
I. INDIAN AUTO LPG COALITION
II. LP GAS INDUSTRY
III. AUTO LPG INDUSTRY


IHS, Asia LPG Seminar June 12-14, 2013 Singapore
Indian LPG Industry
India:
Indias GDP close to $ 2.0 Trillion,
Economy growing in excess of 5% pa.
Demand supported by a population
of 1.2 b.

LP Gas Market
LP Gas Marketing in India commenced
in 1950s by Burma Shell.
LPG Demand started picking up from
1980s, when demand was barely 0.4 MMT
- Fourth Largest consumer of LPG in
the world.



IHS, Asia LPG Seminar June 12-14, 2013 Singapore
Domestic LPG
14.2 kg

Non Domestic LPG
5 kg, 19 kg, 35 Kg & 47.5 kg

Bulk
Delivered to Storage Tanks
of Customers

Auto LPG
Through Retail Outlets

Industry Marketing Overview 2011-12
Total Sale : 15069 TMT
Estimated growth of 3% for 2012-13
Domestic
Non-Dom
Bulk
Auto
89 %
2 % 2 %
7%
IHS, Asia LPG Seminar June 12-14, 2013 Singapore
LPG in India: Coverage and Consumption
Coverage

130 million house holds have access to LP Gas, 700 million population.
Another 40 million households to be covered by 2015, catering to additional
200 million population.
4 Million LP Gas Cylinders delivered to households, daily.

Consumption, per household, per annum
Rural : 80 Kg

Urban : 100 Kg

Third largest consumer of LPG in domestic sector, globally.







IHS, Asia LPG Seminar June 12-14, 2013 Singapore
LPG in India: Demand & Supply
Demand, Existing
15.07 MMT in 2011-12
Indigenous Production : 9.5 MMT,
through State/Pvt Refineries and
Fractionators.
35% of Total LPG Demand met through
Imports.
Demand, Estimated, Vision 2015
Increase population coverage from 50%
to 75%.
Demand to increase to 20 MMT by 2015-16.
Another 40 million households to be covered,
catering to additional 200 million population.







IHS, Asia LPG Seminar June 12-14, 2013 Singapore
Proposed Initiatives:
Bottling Capacity Augmentation
From present 6043 TMT to 9025 TMT by 2015

Port Capacity Augmentation
From 4.4 mnT to 6.5 mnT by 2011-12 &
To 7.3 mnT by 2014-15

Pipeline Capacity Augmentation
From 29% at present to 50% by 2015

IHS, Asia LPG Seminar June 12-14, 2013 Singapore
LPG in India: Infrastructure
LPG Supply

Refineries and Fractionators

Imports

Cylinders
Estimated 200 Million Cylinders in Market

12 million cylinders procured annually

80 Cylinder Manufacturing Units with capacity to manufacture 25-30 million
Cylinders per annum.





IHS, Asia LPG Seminar June 12-14, 2013 Singapore
LPG in India: Distribution and Bottling
Bulk Transportation
Road, Pipeline and Rail
Efforts to increase pipeline to 50%

Bottling
180 + Bottling Plants
11 MMTPA+ Installed Capacity

Distribution
10,000 Urban Distributors
580 Rural Distributors






9%
30%
61%
RAIL
PIPE
ROAD
2010-11
9%
50%
41%
RAIL
PIPE
ROAD
2014-15
IHS, Asia LPG Seminar June 12-14, 2013 Singapore




A Challenge: Home Delivery of Cylinders
Safety Record:


Remarkably good, despite handling
a large number of cylinders;


Rate of accident only 0.2 per Million
cylinders handled.
IHS, Asia LPG Seminar June 12-14, 2013 Singapore
Proposed Subsidy regime
Phase I
Restrict number of subsidised cylinders per household
Remaining Cylinders at market price

Phase II
Subsidy based on Aadhaar authentication
Aadhaar based direct cash transfer to customers

Phase III
Subsidy to targeted segments
Segmentation based on Aadhaar numbers
IHS, Asia LPG Seminar June 12-14, 2013 Singapore
INDIAN AUTOGAS
LPG has built up a huge nationwide network and reach already
with 450+ cities being catered now.
Automotive Industry:
Close to 17 million vehicles hit Indian roads annually

More than 13 million two wheelers sold annually. More than
70% share of all vehicles sold.

About 2.5 m Passenger Cars sold last fiscal.
IHS, Asia LPG Seminar June 12-14, 2013 Singapore
AUTO GAS : SALES
IHS, Asia LPG Seminar June 12-14, 2013 Singapore
AUTO GAS : STATION SPREAD.
ABOUT 1050 STATIONS, 450 CITIES COVERED
IHS, Asia LPG Seminar June 12-14, 2013 Singapore
AUTO GAS : STATION SPREAD.
PSUs LEAD.
IHS, Asia LPG Seminar June 12-14, 2013 Singapore
LPG FLEET SIZE, 2 m+
Aftermarket dominates
IHS, Asia LPG Seminar June 12-14, 2013 Singapore
OEs : Attractive Potential
6 OEMs, 20% Market
IHS, Asia LPG Seminar June 12-14, 2013 Singapore

IHS, Asia LPG Seminar June 12-14, 2013 Singapore
Thank You!!
Suyash Gupta
Indian Auto LPG Coalition
www.iac.org.in

suyash@vsnl.com