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Challenges for New Entrants in the Indian Petroleum Retailing Market Presentation by Rajiv Chaturvedi Chief Operating Officer RELIANCE INDUSTRIES LTD. INDIA. Market Scenario: Post Deregulation. Consumer price linked to import parity Improved Retail margins LPG/Kerosene subsidy to be phased out
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Challenges for New Entrants in the Indian Petroleum Retailing MarketPresentation by Rajiv ChaturvediChief Operating OfficerRELIANCE INDUSTRIES LTD.INDIA
Market Scenario: Post Deregulation • Consumer price linked to import parity • Improved Retail margins • LPG/Kerosene subsidy to be phased out • Regulatory Body to be set up • Accelerated Network Expansion • Aggressive Brand building by existing Players. • Restructuring of Oil PSUs.
Entry Of Private Players • Conditional entry for new players • Marketing Plans to be approved by Government/ Regulator • Servicing remote areas • Different Strategies.
Challenges for new entrants – Network related • Proliferation of Network by Oil PSUs. • High Land Cost in cities. • Statutory approvals • National Highways – New Guidelines. • Technology up gradations. • Competing Fuels – CNG/LPG.
Creating Supply Infrastructure • Need for Pan India presence • Cost of Product Placement • Product Exchange System yet to evolve • High dependence on Road transportation.
Developing a Service Brand • Transition from Commodity to Brand • Increasing Customer Service Expectations • Branding initiatives – PFS, Club HP, Extra Premium • Entry of Branded fuels • Aggressive Loyalty Programmes • Competitive Pricing
Way Forward • Completely free market • Competition and collaboration can co-exist • New Retail Formats • Acceleration in non-fuel retailing. • FDI in retail • Brand differentiation will be the key.