India: Essar Oil & Aegis Enter Fuel Retail Alliance

Photo: Entrance to Essar Oil office in Mumbai. Photograph taken by PetrolWorld this week who were visiting Essar with regards to the  forthcoming  mini business meeting forum  to be held in Mumbai as well as  outlining the  PetrolWorld Magazine programme for 2010.

Aegis Logistics, India’s 2nd largest private sector operator in auto LPG business selling auto LPG under the brand name ‘Aegis Autogas’ has entered into a strategic alliance with Essar Oil Limited whereby both companies would sell each others fuels through their retail outlets.

 This tactical coalition will cover 7 states which include Gujarat, Maharashtra, Karnataka, Madhya Pradesh, Andhra Pradesh, Rajasthan and Tamil Nadu. Aegis Autogas facilities will be setup at Essar Oil’s Retail Outlets (ROs) and MS/HSD facilities of Essar Oil Limited will be setup at Aegis Autogas Dispensing Stations (ADS). Bulk of the investments for adding such facilities on both sides will be undertaken by Aegis, who views this association as a key strategic initiative in fast tracking their vision of rolling out 300 Autogas Service Stations by the end of 2011.

Aegis has presently a network of 65 Autogas Stations operational in the above 7 states, whereas Essar Oil Limited has over 1200 retail outlets across the country. This unique alliance is aimed at creating a huge profitable value proposition for both the companies, their dealers/franchisees and the end consumers alike.

PetrolWorld who were in Essar Oil headquarters this week also visited a number of service station sites this week in the Mumbai region and looked to see how cng and lpg were being developed  on the same traditional fuels service station sites  for the future.

PetrolWorld 261109