LPG SEGMENT IN INDIA

Types of LPG

Analysis

Consumption has more than doubled in the last decade Demand is still unable to meet the supply side; however it has increased substantially over the last 20 years Quantity (in million metric tonnes)
30 25 20 15

10
5 0 1990-1991 1991-1992 1992-1993 1993-1994 1994-1995 1995-1996 1996-1997 1997-1998 1998-1999 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2014-2015

Quantity (in million metric tonnes)

Market Growth Rates

Market growth rate is flat; new companies have to work hard to compete as LPG is a sensitive product as It has political implications. Govt. gives subsidies which the private sectors cannot afford. Hence, we have limited private players in the market. Growth
20 18 16 14

12
10 8 6 4 2 0 1990-1991 to 1996-1997 1996-1997 to 2001-2002 2001-2002 to 2004-2005 2004-2005 to 2009-2010 2009-2010 to 2014-2015 Growth

Market Share.

IOC is the major market player. IndianOil and its subsidiaries account for a 49% share in the petroleum products market, 31% share in refining capacity and 67% downstream sector pipelines capacity in India.The Indian Oil Group of companies owns and operates 10 of India's 22 refineries with a combined refining capacity of 65.7 million metric tonnes per year. Share (%)
11 12 4 40

IOC HPC GAIL

13

ONGC

BPCL
20 Others

Region Wise Share

West Region leads the consumption share. East has the lowest share; if the companies can concentrate on increasing their market share they can definitely target the east region aggressively. Share (%)
24

30

North East 12 34 West South

Area Focus for New Markets

Better Customer Service through Internet/Telephony Transparency in delivery as there are lot of complaints of tempering with the cylinder quantity On Time Delivery Specialized marketing for specific sectors such as restaurants etc. Potential in rural domestic sector as they still depend on the native methods of cooking; so its an untapped potential which can be explored LPG can be popularised as a fuel for automobiles specially on shorter routes.