The Hindu Business Line : BPCL to sharpen focus on `Beyond LPG' service

Beyond LPG,' the value-added service introduced by BPCL for its LPG customers, has spun into a full-fledged business unit today, with the company hoping to double its turnover to Rs 137 crore in the current fiscal and to Rs 150 crore by the end of 2007-08.

Introduced in October 2003, the initiative envisages BPCL's LPG distributors selling household appliances, kitchen utensils and even tea and pickles, along with gas cylinders.

Branded products are home delivered to BPCL customer using the existing delivery system for LPG cylinders. The customers have to place orders over the phone.

Speaking to Business Line, Mr S. Radhakrishnan, Marketing Director of BPCL, said that the `Beyond LPG' service was launched three years ago to give a boost to the flagging business of LPG distributors by providing them an extra revenue source.

"The business is running well without any major infusion of working capital by BPCL. We only fund for local promotional campaigns. It has been a major success in non-metros like Coimbatore and Vijayawada."

Business Model

Mr Radhakrishnan said that BPCL negotiates with manufactures and gets goods in bulk for the LPG distributors at lower-than-market prices.

In the process the company gets 1-2 per cent margin. By end of the current fiscal, the company hopes to make a profit of about Rs 8 crore from this scheme, he said.

He also said that `Beyond LPG' is a voluntary scheme and no distributor is forced to offer it.

The company has 2,300 distributors across the country but only 500 have signed up.

Mr Radhakrishnan also said that other than pressure cookers, water heaters and utensils, small generator sets are also in demand.

The company is in the process of tying up with leading mobile operators for pre-paid and post-paid connections and recharge vouchers, he added.

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