| |  
 
 
 
 
 
MARKETING NETWORK
 
Institutional
The Company plans to establish a network of about 1,700 dealers and franchisees, and 40 depots, which will be monitored from about 12 regional offices across India. The regional offices are going to serve as the node between the manufacturing plants and the dealers / depots / franchisees on the other side. To juxtapose, the total number of retail outlets for petroleum products in India, as on 01 April 2006, was 31,650 with the states with the highest number of retail outlets being – Uttar Pradesh (3,861), Maharashtra (3,024), Andhra Pradesh (2,705), Tamil Nadu (2,649) and Punjab (2,308).
The management believes that coupled with a strong brand building effort it could erect high entry barriers for new entrants. For the brand building and publicity, the Company proposes to build a distinct brand name and identity - it proposes to use the brand name ‘Mileage’ for biodiesel.
In order to sell petroleum products, in India the sellers are required to obtain a license but the same is not required in the case of biodiesel as it has a higher flash point of 120 degrees centigrade. The Petroleum Act specifies three classes namely CLASS A (flash point below 23 degrees centigrade), CLASS B(flash point above 23 degrees centigrade but below 65 degrees centigrade) and CLASS C(flash point 65 degrees centigrade and above and below 93 degrees centigrade) for which licenses are required. Hence there is no restriction or government control and no licenses or permissions are required to store, transport or sell biodiesel to any consumer in India. This enables the company to roll out it outlets at a very fast pace and will thus aid in expanding the network.
Source: Petroleum, Planning & Analysis Cell, India
 
Distribution Network for the Patalganga plant
 
 
Targeted Market for Bio-Diesel
  Industry   Automobile manufacturers
  Construction and Infrastructure
Engineering, Realestate Developers, Project Developers, Iron and steel plants, Heavy Vehicle Manufacturer and more
  Power Plants
Cement Plants, Steel Plants, Cold Stroage, Industrial Automobile and more
  Government Owned Transport,   Fleet Owners
BMC, MSRTC, BEST, GSRTC, Millatry, Army, school transoprts, courier companies and more
  Marine
People Transport Company, Fishermans and more.
  Petrol and Diesel Pump Stations   (Retail OutLets)  
 

 

 
Top
    Copyright @ Royal Energy Ltd. Designed by : Dotcom Services (India) Pvt. Ltd.