Financial Daily from THE HINDU group of publications
Thursday, Jun 12, 2003
Financial Daily from THE HINDU group of publications Thursday, Jun 12, 2003 |
|
|
|
|
|
Corporate
-
Announcements Essar begins marketing imported oil products — Invites EoI from bulk users Our Bureau
MUMBAI, June 11 LEAVING aside the uncertainties hovering around its own refinery, Essar Oil Ltd (EOL) has started marketing imported products. The first consignment of imported high speed diesel (HSD) had already arrived and the company was in the process of arranging storage and distribution system, said a company official. "We hope to start selling the product from next 10-15 days as some formalities have to be completed,'' the official said. Meanwhile, the company has invited expressions of interest (EoI) from bulk users for regular supply of products. A company ad inviting EoIs said, "Essar Oil refinery of 10.5 million tonnes per annum at Vadinar, in Gujarat, is expected to be commissioned by mid-2005. Pending this, EOL proposes to import various products at ports on west and east coast.'' According to Essar officials, EoIs had been invited to firm up long-term arrangements with bulk consumers. "We will work out our plans based on the response from potential customers. We wouldn't like to divulge our business details, but we believe there is a market for our product,'' said an official. Mr Raj Varma, CEO (Marketing), Essar Oil, said EoIs had been invited basically to know the customers' response. "This will help the company to have further interactions with them and plan regular imports, '' he said. Asked about the margins on imported products, Mr Varma said it was too early talk about these details. But, he said "all marketing companies get the products at import parity price. So, we have to compete with them. Our margin depends on the volume we sell and the type of customers we get etc.'' Essar Oil had obtained a licence for marketing petroleum products last year is in the process of setting up a network of retail outlets. According to officials, till date, the company has issued 1,100 letters of intent and over 150 letters of appointment of franchisees, mostly in the western and northern regions. The first set of retail outlets expected to be commissioned by September-October this year.
Article E-Mail :: Comment :: Syndication
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | Home |
Copyright © 2003, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|