Let’s Begin

Summer Internship Project For

Essar Oil LTD

Trading Area Analysis in Anand Town for selection of

a Location for a oil Retail outlet.
About Essar Group
Founders – Shashi Ruia and Ravi Ruia
Founded in 1969
A multinational Conglomerate
A Company diversified into
manufacturing, services and retail
Essar Steel
Manufacturing of Flat Carbon Steel
Export to US and European Markets
Major Clients
Distribution Outlets
Essar Shipping Ports and Logisitics
Provides end-to-end logistics with sea and
surface transport services, oilfield drilling
services and associated pipelines
Sea Transportation Business
Inland Transport Business
Essar Telecom
Vodafone-Essar – a joint venture
Builds telecom tower infrastructure
Also Launched India’s first chain of
mobile retail outlets – The Mobile Store
Essar BPO (Aegis India LTD)
Provides Customer Relationship
Management, Database Management,
Analytical services and market
intelligence services
Has nine clients in U.S. and 10 clients in
India
Essar Oil
Refinery and Retail Business
Refinery Located in Vadinar, Jamnagar
Refining Capacity – 280000 Barrels per
day
50% stake in Kenya Petroleum Refinery
Services
Major Players
Indian Oil Corporation LTD

Bharat Petroleum Corporation LTD

Hindustan Petroleum Corporation LTD

Reliance Petroleum LTD

Shell India LTD

Oil Retailing Business
Franchise owned, Franchise operated
1300 plus retail outlets
Further plans of expansion
Non-Fuel Retail Business
Bulk Business
Franchise Procedure
Application by the Franchisee
Registration
Site Survey
Issuance of Letter of Appointment
Preparing the Layout Plan
Approval from relevant authorities
Infrastructure Set up
Commencement of a Retail outlet
Approval Required
 District Magistrate
 District Panchayat
 Road and Building Department
 Superintendent of Police
 Local Mamlatdar
 Gujarat Electricity Board
 Chief Department of Explosives (GOI)
 Weights and Measurement Department
 City town Planning Department
 National Highway Authorities of India
Expenditure Incurred by Franchisee
 Capital Expenditure of Land
 Application Fees
 Infrastructure Expenditure
 Working Capital

Revenue Earned by Franchisee

 5% p.a. of value on Land as Lease rent
 5% p.a. of Infrastructure expenditure incurred
 Commission: MS: Rs. 1.12/litre, HSD: Rs. 0.67/litre
Significance of Location in
Retail
Location – the least flexible element of a
firm’s strategy
Location Selection – a critical decision
No. of criteria‘s to be considered
Sizeable Investment and Long-term
Commitment required
Major Factor for a Firm’s Success and
Failure
Trading Area Analysis
Meaning
Several Benefits
 Consumer's Demographic and Socioeconomic
Characteristics
 Target Customers
 Competitors Details
 Facilities available nearby
Trading Area Analysis at Essar
Vehicle Density
Traffic Count
Business and Trading Activities
Fueling Pattern
Availability of Land
Competitors Analysis
Research Topic

“ A detailed study and Market Research

on Retail Trading Area in Anand Town”

The Trading Area

Objectives of the Research
Competitors Analysis
PotentialCustomers
Traffic Count
Suggest the Best Location for a Oil Retail
Outlet
Research Methodology
Sample Size – 50 Samples
Data Collection
Findings of the Research
Details of the Trading Area
Description
of the trading area
Commercial activities
Cold Storages
Transport Companies
Cement Godown
Amul Chocolate Plant
Other activities
Villages Information

Name of the Village Distance from origin Fueling Done

Mogar 5.5 kms after Chikodra circle Adinath Petroleum

Varod 5.2 kms. after Chikodra circle Chikodra Service Station

Wagas 1.1 kms. after Chikodra circle Chikodra Service Station

2.5 kms. before Samarkha

Ravrapura
circle

5.2 Kms. before Samarkha

Boriavi Bhatiya Petrol pump
circle
 Vehicle Density

Vehicles
Village Population

2-Wheeler 4-Wheeler Trucks Tractors Rickshwas

Mogar 14000 500 100 25 50 30

Varod 6000 250 20 10 10 -

Wagasi 7000 300 40 10 6 10

Ravrapura 5000 200 20 5 4 5

Boriavi 30000 2000 60 35 150 200

 Competitors
Monthly sale (in KL’s)
Name of the retail
Company Distance from origin Hi-Speed
outlet Motor Spirit
Diesel
1.9 kms. after
Ganesh Auto Fuel IBP 8 45
Chikodra Circle

0.2 kms. before

Chikodra Service Station Bharat Petroleum 45 450
Chikodra Circle

0.1 kms. after

J.R. Patel & co. Hindustan Petroleum 120 448
Samarkha Circle

7.7 Kms. before

Shree Krishna Petroleum Bharat Petroleum 36 135
Samarkha Circle

7 kms. after Chikodra

Adinath Petroleum Hindustan Petroleum 20 200
Circle

DIMCO LTD Hindustan Petroleum Chikodra Circle 120 180

8.1 kms. before

Krishna Petroleum Essar oil 20 70
Samarkha Circle
 Traffic Count
1. Opp. Ekta Nursery (after Chikodra Circle)

Time Slot
Vehicle
8am -11am 12pm – 3pm 4pm – 7pm

Towards Towards Towards Towards Towards Towards

Chikodra Vadodara Chikodra Vadodara Chikodra Vadodara

2-Wheelers 548 410 460 602 601 350

4-Wheelers 345 475 362 502 403 325

Trucks/Buses 422 654 385 608 528 451

Chakdas 162 214 184 201 250 141

Large Carrier
49 46 22 35 50 61
Vehicles

Tractors 20 18 11 15 15 9
2. Between Chikodra and Samarkha Circle
Time Slot
Vehicle
8am -11am 12pm – 3pm 4pm – 7pm

Towards Towards Towards Towards Towards Towards

Samarkha Chikodra Samarkha Chikodra Samarkha Chikodra

2-Wheelers 468 373 293 273 577 475

4-Wheelers 293 312 288 347 550 452

Trucks/Buses 389 352 342 362 502 537

Chakdas 133 132 102 78 112 102

Large Carrier
28 37 29 17 30 20
Vehicles

Tractors 21 12 22 13 15 60
3. Samarkha Circle to Anand

Time Slot

8am -11am 12pm – 3pm 4pm – 7pm

Vehicle
Towards Towards Towards Towards Towards Towards
Samarkha Anand Samarkha Anand Samarkha Anand

2-Wheelers 897 1020 785 921 1308 1065

4-Wheelers 412 380 384 304 742 654

Trucks/Buses 165 95 124 78 185 114

Chakdas 280 265 189 212 195 256

Large Carrier
0 0 0 1 2 1
Vehicles

Tractors 15 25 6 11 8 11
4. Chikodra Circle to Anand

Time Slot
8am -11am 12pm – 3pm 4pm – 7pm
Vehicle
Towards Towards Towards Towards Towards Towards
Chikodra Anand Chikodra Anand Chikodra Anand

2-Wheelers 1402 1256 956 988 1504 1325

4-Wheelers 704 687 645 526 874 540

Trucks/Buses 225 350 211 238 245 201

Chakdas 140 164 104 101 101 98

Large Carrier
12 11 6 3 15 2
Vehicles
Tractors 24 26 11 12 14 4
5. M/s Patel Petrol Pump – 1.5 kms before Samarkha Circle

Time Slot

8am -11am 12pm – 3pm 4pm – 7pm

Vehicle
Towards Towards Towards Towards Towards Towards
Samarkha Ahmedabad Samarkha Ahmedabad Samarkha Ahmedabad

2-Wheelers 598 420 274 201 389 302

4-Wheelers 248 305 210 246 298 456

Trucks/Buses 299 703 249 325 751 798

Chakdas 145 122 98 87 78 64

Large Carrier
38 40 34 45 69 32
Vehicles
Tractors 20 19 14 9 6 15
Final Selection of the Location
Location near a Village
1. Near Boriavi Village
2. Near Mogar Village

Location near a Circle

1. Near Chikodra Circle
2. Near Samarkha Circle
Future of Oil Industry
OilPrices set free
Dynamic Pricing
Eye on Efficiency
Reprieve for private firms
Innovative Marketing Strategies
 Bulk Discounts
 Reward for Loyalty
Prospects for Essar Oil
Market Leader in private oil Marketing
companies
Low refining cost but high transportation
cost
Good marketing and promotional
activities – a sure step to increase footfalls
 Presented by:
Vishal Nihalani
Roll no. 28
Company: Essar Oil

Special Thanks to:

Mr. Deepak Asrani, Prof. Rajiv Joshi

Company Guide, Faculty Guide
Divisional Manager,
Ahmedabad Division, EOL