b2b Intro and Essar

8/19/2019 b2b Intro and Essar

1/20

Managing B2B MarketingChannels in Oil & GasIndustry

BYMALLEBOIN A SRIKAN ! YA"A#$RA#EEN ! ANS"ASAN%EE SARA# K%RANKR ROYE SANOS! KMARSANOS! KMAR SS!ANAN


2/20

Indian Oil and Gas Industry


3/20

Second largest refiner

in Asia

• At the end of 2014, India had 222.4 MMTPA of provisional refining capacity, maing ilargest refiner in Asia an. !y 201" the oil refining capacity of India is e#pected to rise athan $10 million tonnes. Private companies o%n a&o't 2(.$1 per cent of total capacity

)orld*s fo'rth+largest

energy cons'mer

• India*s energy demand is e#pected to do'&le to 1,44 Mtoe &y 20$- from -(- Mtoe Moreover, the co'ntry*s share in glo&al primary energy cons'mption is proected to inc&y 20$-

In 2014, /o'rth+largest

cons'mer of oil andpetrole'm prod'cts

• In 2014, India cons'med $.- m&pd oil, %hile the cons'mption is estimated to reach 4/1, e#panding at a A3 of $.2 per cent d'ring /05/1/. !y 202-, India is e#p

overtae 6apan to &ecome the third+largest cons'mer of oil.

/o'rth+largest 783

importer in 2014

• 783 imports acco'nted for a&o't one+fo'rth of total gas demand. India9s gas demand&e more than do'&le over the ne#t five years .

• India increasingly relies on imported 783: the co'ntry %as the fo'rth+largest 783 impoacco'nted for -. per cent of glo&al imports.


4/20

! NOIA. tMMO EQUl'T'fFOUHOA.l'IOM

wwwJ bef .org

A; India is the %orld*s fo'rth+largest energy

cons'mer ?2014@: oil and gas acco'nt

for $" per cent of total energy

cons'mption

Silled %orforce

A&o't 1$,$4" people %ere employed

in the petrole'm ind'stry at the end of

/1$

>

The niversity of Petrole'm and

=nergy St'dies in ;ehrad'n,

ttarahand, is Asia*s first and only

energy 'niversity

>

> ;emand for primary energy in India is to

increase threefold &y 20$- to 1,-1

million Tonnes of Bil

> =C'ivalent from -$ million

Bil =C'ivalent in 2012

Tonnes of

Advantage

India>

Policy s'pport

3overnment has enacted vario's policies

s'ch as the 8e% =#ploration 7icensing Policy

?8=7P@ and oal !ed Methane ?!M@ policy

to enco'rage investments

S'pportive /;Ig'idelines

> The government allo%s 100 per cent /oreign;irect Investment ?/;I@ in

private sector refining proects

'pstream and

In a ne% policy in 201$ companies that have

e#isting petrole'm and mining licenses are

allo%ed to apply for shale oil D gas licences

>

> The /;I limit for p'&lic sector refining proects

has &een raised to 4( per cent %itho't any

disinvestment or dil'tion of domestic eC'ity in

the e#isting PSs8e% domestic nat'ral 3as pricing g'idelines

has &een enforced on 10th 6an'ary 2014

>

/1

Bilons'mpti

4.0 m&pd

3as

ons'mpti

11(.0- &c

2014

Bilons'mptionE

$.- m&pd:

3as

ons'mptionE

-0. &cm


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STAT=+B)8=; BMPA8I=S ;BMI8AT= BI7 A8; 3AS I8 I8;IA

India has &ecome the third+largest energy cons'mer in 201-

In 201-,oil prod'ction in the co'ntry reached 0."- m&pd as compared to 0." m&pd in 2014 registering a percent, In 2014, co'ntry had, -." &illion &arrels of proven oil reserves

India had 1.4 tcm of gas proved reserves and prod'ced $$. &cm of gas in 201- %hich is e#pected to rise a

$$."$ &cm in 201

o'tp't ?/14@

sector

com&ined capacity of 1.$0 m&pd

considera&le maret share ?$0 per cent@

aro'nd 10 per cent of total refining capacity

;o%nstream

segment 5

refining,

processing and

mareting

> IB7 is the largest company, operating 10 o't of 22 Indian refineries, %

> eliance la'nched India*s first privately o%ned refinery in 1((( and ga

> =ssar*s IB7 operates a 11,214 m net%or of cr'de, gas and prod'ct pipelines,

a capacity of 1. m&pd of oil and 10 mmscmd of gas> This is aro'nd $0 per cent of the nation*s total pipeline net%or

pstream

segment +

e#ploration and

prod'ction

> State+o%ned B83 dominate the 'pstream segment

> It is the largest 'pstream company in the =#ploration and Prod'ction ?=

segment, acco'nting for appro#imately per cent of the co'ntry*s tota


6/20

;B)8ST=AM S=3M=8TE ;ISTI!TIB8 A8; MAF

G

;o%nstream distri&'tion statistics ?H000 tonIn /1$, total sales of petrole'm prod'cts &y companies%ere 14.-2 mmt, 'p 1."$ per cent from the previo's fiscal

year $.$$."" $.$

G

G

The total n'm&er of retail o'tlets increased to 4(,-?incl'ding private@ in April 2014 from 4,12 in April 201$

IB o%ns the ma#im'm n'm&er of retail o'tlets in

the

co'ntry ?4.( per cent of total@, follo%ed &y P7 ?2.2"

per cent@ and !P7 ?24."4 per cent@: private firms o%n the

remaining

-.( -".---.-2-2.1041.-

$.1

G

As of April 1, 2014, there %ere 1$,( 7P3 distri&'tors inIndia /0 /0( /10 /11 /12 /1$

7P3 Pipel ine Prod'ct Pipeline

As of AprPipeline

apacity ?mmtpa@

As of April 1, 2014

7ength

Prod'ct Pipeline "".41 11,1

7P3 Pipeline 4.-$ 2,$

$.-0$.$4

2."-


7/20

MARKEING AN" "ISRIBION'"O(NSREAM

> MARKETING OF FINISHED PRODUCTS FROM PRODUCTION CENTRES (REFINERIES) TO

CONSUMPTION CENTRES (INDIVIDUA CUSTOMER! INDUSTRIA CONSUMER)

> CONSIST OF STORAGE AND DISTRI"UTION CENTRES ( INSTAATION ! TERMINA ! TAP O

DEPOT)# PG "OTTING PANT# AIR FIED STATION (AFS)# U"EOI "ENDING PANT(ORETAI OUTETS(RO)# AND ADMINISTRATIVE OFFICES

Down-stream s!!l" #$a%nRefineryterminals

Inland / TapOff Terminals

Customers

Depots

Retail Outlets

PortTerminals


8/20


> M$%&randu% &' C&lla&rati&n (MOC) $t$$n t*$ &il +&%,a'&r s*arin- ,r&du+t and 'a+iliti$s t& &,ti%i.$ $/$+ti0$ utili.a

&' ,r&du+t and 'a+iliti$s> M&nt*ly industrial l&-isti+ ,lan %$$tin- (IP) '&r 1nali.in-

,r&du+t %&0$%$nt and distriuti&n ,att$rn '&r $nsuin- %&nt*$ asis &' r$1n$ry ,r&du+ti&n# ,r&du+t a0ailaility# +&nsu%and d$%and

> Industry C&&rdinati&n 2 R$-i&nal l$0$l +&&rdinat&r (RC) # Stl$0$l +&&rdinat&r (SC) and Distri+t l$0$l +&&rdinat&r (DC)

I3 RC4 D$0$l&,in- an industry a,,r&a+* t& any di5+ulti$s,r&l$%s $n+&unt$r$d y t*$ industry

II3 SC4 R$,&rts t& RC3 An int$r%$diary $t$$n Industryt*$ Stat$ G&0$rn%$nt it* r$-ard t& a0ailaility anddistriuti&n &' ,r&du+ts

III3 DC4 R$,&rt t& SC3 T& $nsur$ +&&rdinati&n it* distri+taut*&rity it* r$-ard t& distriuti&n &' ,r&du+ts in t*$ d


9/20


Industry %$$tin- '&r ,ri+$ 16ati&n 2 T& %&nit&r ! 16in- ,&' r$tail ,r&du+ts (MS ! HSD ! PDS KEROSENE!PG(D)

r$s,$+t &' '&ll&in-

i3 C&%%issi&nin- &' n$ r$1n$ry

ii3 C&%%issi&nin- &' n$ installati&n ! t$r%inal

iii3 C&%%issi&nin- &' n$ ,i,$lin$s

i03 C&%%issi&nin- &' n$ d$,&t ! ta, &/ ,&int

03 C&%%issi&nin- &' n$ r$tail &utl$t

0i3 C*an-$ in t*$ RTKM &' r$tail &utl$ts

0ii3 R$0isi&n in 'r$i-*t +*ar-$s

0iii3 S*i'tin- &' ,ri+in- ,&ints

i63 C*an-$s ! i%,&siti&n &' statut&ry l$0i$s


10/20


Ty,$s &' Mar7$t> 8A9 Class Mar7$t 2 M$tr&s and &t*$r +iti$s *a0in- ,&,ulati&n &0$r :; la+s as ,$r

> 8"9 Class Mar7$t 2 Citi$s *a0in- ,&,ulati&n $t$$n > la+s t& :; la+s as ,$r : 8C9 Class Mar7$t 2 All &t*$r t&ns ! +iti$s n&t +&0$r$d 8A9# 8"9 and 8E9 %ar7$ts l&+ati&ns &n Nati&nal ! Stat$ Hi-*ays

> 8D9 Class Mar7$t 2 RO?s &n Nati&nal ! Stat$ Hi-*ays

> 8E9 Class Mar7$t 2 R$%&t$ ar$as n&t +&0$r$d y Nati&nal ! Stat$ Hi-*ays and ,+&nsu%,ti&n *a0in- n& R$tail Outl$t it*in :; K% radius

Ty,$s &' Mar7$tin- C*ann$lsR$tail A sit$ RO 2 C&%,any &n$d 'a+iliti$s and +&%,any +&ntr&ll$d &r d$al$r +&ntr&

" sit$ RO 2 D$al$r &n$d 'a+iliti$s and d$al$r +&ntr&ll$d

A-$n+y '&r K$r&s$n$ ! DO # uri+ants ! Gr$as$s 2

Dir$+t C&nsu%$r ,u%,s '&r HSD

a3 Dir$+t Cust&%$rs '&r HSD # FO # DO # SHS # NAPTHA# PG # "ITUMEN# "ASE O

U"RICANT AND GREASES# ATF ETC


11/20

;emand /orecasting

> hey tra)k last *+e years sales *gureand *nd ,ut the gr,-th rate

> hey als, tra)k gr,-th rate ,.aut,/,0ile sales1

>$etr,leu/ /inistry gi+es t,talr,du)ti,n lan1

>Sa/e haens in B$CL1


12/20

After sale service

>3,r industrial r,du)ts they take.eed0a)k ,. huge )ust,/er and)are.ully l,,k a0,ut the need1

>3,r retail r,du)ts there is n, a.tersales ser+i)es4 all the ser+i)es area+aila0le ,n etr,leu/ u/1

>3a)ility .,r tru)k dri+ers t, take 0ath4ha+e .,,d and ),ld drinking -ater1

>"ri+ers )an slee and rela5 ,n u/1

>N, standard .eed0a)k /e)han.eed0a)k is taken ,nly .r,/ lar)ust,/ers1>Se)ial etr,')ard .,r l,gisti)s

),/anies is r,+ided1>L,gisti)s ),/anies get 2 /,n)redit eri,d1


13/20

SM 5 InJo't&o'nd logistics

>In0,und as -ell as ,ut0,und l,gisti)sare ,uts,ur)ed1

>Industrial )ust,/ers ha+e an ,ti,n,. using their +ehi)les ,r ),/any6s+ehi)le1

>N, ),/any ,-ned +ehi)le1

>In0,und l,gisti)s is ,uts,ur)ed

>Out0,und l,gisti)s is 789

,uts,ur)ed and 789 ),/any,-ned1

>Any )ust,/er d,n6t ha+e any t, use their +ehi)le1


14/20

A,int/ent ,. dealer1

> hey :st de)ide the la)e and thengi+e ad+ertise/ent1

>Inter+ie- is taken ,. ali)ants1

>I. any ers,n is -illing t, ,en aretail ,utlet in his l,)ality then he )analy in !$CL1

>Sa/e r,)ess is .,ll,-ed 0y B

>Only ),/any de)ides -here,en retail ,utlet1


15/20

EOL

> Essar Oil is a .ully integrated ,il & gas ),/any ,.internati,nal s)ale -ith str,ng resen)e a)r,ss thehydr,)ar0,n +alue )hain .r,/ e5l,rati,n & r,du)ti,re*ning and ,il retail1

> Essar Oil ,-ns India;s se),nd largest single site re*neha+ing a )aa)ity ,. 28 /illi,n t,nnes and ),/le5ity

::1 It has a ,rt.,li, ,. ,nsh,re and ,=sh,re ,il & gas 0l,

-ith a0,ut :1> 0illi,n 0arrels ,. ,il e?ui+alent in reserres,ur)es1


16/20

EOL

> Essar Oil4 thr,ugh a .ran)hise /,del4 t,day ,eratesar,5i/ately :4778 ,erating retail .uel ,utlets a)r,India1 An,ther :@88 are in +ari,us stages ,.i/le/entati,n1

> he ),/any is n,- l,,king at e5anding its retailnet-,rk1

> Additi,nally4 the ),/any is in)reasing n,n'.uel retaia)ti+ities in this ,rt.,li, ,. retail ,utlets t, r,+ide aadditi,nal s,ur)e ,. re+enue1


17/20

EOL

> Essar Oil is the *rst ri+ate ),/any in India t, enterre*ned r,du)ts /arketing se)t,r1

> Essar rea)hes e+ery ),rner ,. the ),untry ),+ering thnati,nal and state high-ays and the rural areas1 Essasulies high'?uality etr,l and high'seed diesel1

> (idesread net-,rk has )reated an e5)ellent land 0aresulting in the de+el,/ent ,. N,n'3uel Retail N3Rr,/ising 0usiness )hannel .,r ,ur retail t,day sin)e .a)ilitates high .,,t.alls4 in)reased )ust,/er a)ti+ati,high re)all +alue -ith a r,*ta0le utiliati,n ,. the resite1


18/20

EOL

> A,,li+ati&ns '&r P$tr&l Pu%,s

> Essar Oil in+ites ali)ati,ns .r,/ interested e,le t, set u etr,l u/sthe ),untry1 Interested e,le /ust ,ssess land suita0le .,r etr,l u/s r,/inent l,)ati,ns1 Essar Oil sees i//ense ,tential .,r gr,-th in 0usinediesel and etr,l stati,ns1

> (e are n,- l,,king at ,ening retail net-,rk in .,r/ats like C,/any O-nC,/any Oerated COCO4 C,/any O-ned "ealer Oerated CO"O4 in t, the e5isting "ealer O-ned "ealer Oerated "O"O

> EOL has re)ently 0een aggressi+ely adding /ulti'.uel ,ti,ns .,r its )ust,/already has tie'us -ith GS$C4 GAIL GAS4 Sa0ar/ati Gas4 Adani Gas and GuGas C,r,rati,n .,r selling CNG4 0esides tie'us -ith MGL and Aegis L,gistselling Aut, L$G in its ,utlets1 Currently4 2F ,. EOL6s retail ,utlets ha+e CNG.a)ilities4 and *+e ha+e Aut, L$G n,les1


19/20

EOL

> ie'us -ith ,ther ,il /arketing ),/anies als, gi+es Essar a))ess t, r,du)t4 and the right t, use their ter/inals and .a.,r the la)ing and /arketing ,ur r,du)ts1 hr,ugh this -e resen)e at /,re than 8 suly l,)ati,ns a)r,ss India1

> All N3R a)ti+ities are designed t, ser+e the +arying needs ,.)ust,/ers1 his has )reated s,/e /utually 0ene*)ial allian)a)r,ss +ari,us )ateg,ries su)h as Aut,/,0iles4 Lu0ri)ants4

Agr,)he/i)als4 Banking4 ele),/ and 3,,d and Be+erages1 tie'us -ith leading layers su)h as E5ide4 SER#O4 CASROL OAL4 EL34 % K yres4 B,s)h4 SBI 4 (estern ni,n M,ney ranA/ul4 Ca.H C,=ee "ay4 "insha-s4 !eritage 3,,ds4 $esi4 Biry!,use4 Nati,nal Seeds C,r,rati,n ha+e .a)ilitated /a5i/u/)ust,/er ),n+enien)e and satis.a)ti,n1


20/20

Bulk Business

>EOL ,=ers a -ide range ,. r,du)ts t, 0ulk )ust,/ertraders and dire)t )ust,/ers in the industrial andtrans,rt se)t,rs1 A range ,. etr,leu/ r,du)ts ),+nu/er,us ali)ati,ns are ,n ,=er t, industrial )ust,like ,-er lants4 and )he/i)al4 .ertilier and shiin),/anies1

> It has re)ei+ed ar,+als t, suly A+iati,n ur0ine 3A3 t, the Indian Ar/ed 3,r)es4 and has tie'us -it/arketing ),/anies4 na/ely Bharat $etr,leu/C,r,rati,n Ltd B$CL and !industan $etr,leu/C,r,rati,n Ltd !$CL1

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