The promoters of Premier LPG Ltd. has been dealing in small size cylinders since 1984, and started supplies of domestic cylinders from Bhiwadi Plant having capacity of 1000 cylinders per day when Parallel Marketing system was introduced in India in 1993. Anticipating big fortune in LPG business, the Premiere LPG Limited was established in the year 1994 with a share capital of Rs. 1.00 Crore which was increased to Rs.2.00 Crore.
Till 1998-99, PLL performed well in the domestic sector as the public sector companies were not in a position to meet increasing demand. The Govt. Of India banned the use of Domestic Cylinder for Commercial Use in 2000. Since then, company is concentrating on commercial LPG sector in Delhi, surrounding areas, Jaipur as well as Bhilwara. We gained experience after entering in this field that there are many ups and downs in the commercial sector like heavy discounts from Govt. Oil Companies & competition with big companies who have more resources than us. On the other side, it is a fact that there are so many big/small users who are ready to get commercial gas on higher rates if supplies are given at their choice time which is not possible for Govt. Oil/MNC companies.
However, at this time, some have left the industry who was short term players and we learned from our experience and exist during this period by improving us as per the market requirements.
Since the introduction of DBT Policy in 2012, we had favorable time and sold large number of connections, but due to political atmosphere, this policy could not sustain for long period and when Govt. again opens connections on subsidized rates, some people returned their connections to the company. This had become a routine process that people get connection by paying higher amount to the company & at the time of surrendering connection, company is paying lesser amount of the cylinder deposit to the customer which is also profitable for Parallel Marketer because the company is selling the same cylinder to other customer on higher rates.
2015- till date
However, the DBT policy was introduced from January 2015 which also created market for Parallel Marketer. The Govt. of India also levied GST on domestic cylinder and it seems that subsidy will be over & there will be no difficulty for Parallel Marketer to compete the market which is presently with Govt. Oil companies.
As a part of its drive towards Quality in Management and Customer Service, the company codified manuals system, literature & procedural guidelines in each and every operational task. Comprehensive training literature methodology was developed for training of all staff on practical basis especially for Surveyors, Sales Representatives and Business Development Managers.
Achievements & Milestones
- The company has been earning a good profit from the 1styear of its operation. The company appointed its 1st batch of dealers in the area of Bhiwadi, Sri Ganganagar, Ajmer, Jhunjunu etc. & issued 20000 connections within 8 months.
- The company managed to sell the cylinder on a good margin by providing good customer service and concentrating on consumers based in small cities and villages where the Government undertakings were not concentrating.
- Based on long term goals, the company built its own bottling plant at Gulabpura in 1996 increasing its refilling capacity 5 times as that in Bhiwadi. from 1000 cylinders to 5000 cylinders refills per day. This plant was inaugurated by the then Hon’ble Deputy Chief Minister of Rajasthan Shri Hari Shankar Bhawra.
- Even at the difficult times, we stood in the market strongly and fulfilled the increasing market requirements by supplying the commercial LPG to reputed Commercial/Industrial clients based in NCR Delhi i.e. Haldiram, Bikaner, Sagar Ratna, Bengali Sweets, Kaleva, Nathu Sweets, Evergreens etc. as well as in Bhiwadi i.e. Bhiwadi Cylinders, Sapphier India, ICAMA etc. & various processing houses in Bhilwara and Jaipur region, utilizing both of our bottling plants in Bhiwadi and Gulabpura respectively.
- In 2012, the Govt. introduced DBT (Direct Benefit Transfer) policy i.e. transfer the subsidy directly in customer account & fixed the quantity of subsidised cylinders per family. During this period, we issued about 5000 connections in Bhiwadi, Gurgaon, Manesar etc.
- Since DBT policy of January 2015 and imposing GST on domestic cylinder, Parallel Marketers of LPG would not face any difficulties further, to compete the market which is presently with Govt. Oil companies.
Presently, Premiere LPG LTD is supplying LPG in Northern India regularly since 1993 in the sizes of 4,12,15,17 & 33 kg. cylinders for Domestic, Commercial & Industrial uses without any complaint & running four Auto LPG Dispensing Stations at Etawa, Auriya (under construction), Mau (at NOC Stage) and received application for Farukh Nagar.
The present scenario is totally in our favor due to which we are sure that our Associates will establish themselves with minimum investment by:
- Serving the shopkeeper using domestic cylinder for commercial use and providing cylinders to those who are not in a position to spend heavy amount on 19KG cylinder
- Providing refill at convenient time to domestic user
- Issuing connection on any ID proof to those people who are not capable to complete the formalities to get Govt. subsidized connection
- Replacing mini gas cylinder for those who are purchasing gas in Mini Cylinder at very high rates
- Providing GST MODVAT to commercial/Industrial units.
Now, we have come to the conclusion, there are three types of associates levels i.e. Level 1 for development of perspective plan, Level 2 for marketing & distribution & Level 3 for supporting team so that we can achieve our goals.
- Delivery at Customer’s doorstep, at his convenient time, within 24 Hrs.
- Money Back Guarantee, in case of non-supply.
- Offer consumer Loans for Connection with condition, No installment in case of non-supply.
- Various promotional schemes for Consumer from time to time.
PERSPECTIVE PLAN OF THE COMPANY
- Optimum utilization of bottling capacity of both the plants.
- Set up Auto LPG Dispensing Stations in the various cities of India
- Supply of LPG in Northern India subsequently all over India.
- Establish Bottling Plants/Blending units in the radius of 500 km. all over India.
- Establish own manufacturing unit of cylinders and allied products.
- Develop its own dedicated jetty for import of LPG.
- Two operational bottling plants at Bhiwadi (On Lease), and Gulabpura (Distt. Bhilwara) Rajasthan (Company Owned), having total storage capacity of 80 M.T. of LPG and refill capacity of 5000 cylinders per day. The required basic infrastructure viz. labour, water, transportation and electricity etc. are available. To back up the any power failures, these units also have Diesel Generator sets.
- One approved Godown at Najafgrah, Delhi.
- Company’s Regd. office at best location in Dwarka, Delhi at Corporate Park Sector-21 which is approachable by Metro & near the Airport.
- One Auto LPG dispensing station running successfully under Dealer Owned Dealer Operated scheme at Etawa (U.P).
- Approval of layout plans from Chief Controller of Explosives, Nagpur for Company-Owned Company-Operated Auto-LPG Dispensing Station (on NOC stage) at Gulabpura, Rajasthan.
- 4 Auto LPG Dispensing Station-1) At Auriya which is under construction 2) At Mau which is under construction 3) Farukhabad which is at NOC Stage 4) Bhilwara at NOC Stage
Introduction of Auto LPG
LPG was allowed to be used as an ‘Auto-Fuel’, vide Gazette Notification No.393 of August 2001. Keeping in view the past experience of fraud people entered in LPG business in 1993, the Govt. of India made it mandatory for the company to have an approved rating of at least ‘3’ from certified rating agencies. The Chief Controller of Explosive is authorized for granting permission/licenses, who constituted a committee called “Task Force” which is a group of professionals from various Oil and equipment installation companies to ensure superior operation and management of the Auto LPG Dispensing Stations (ALDS). The “Task Force” has formulated terms for appointment of Approved Operators, to sell Auto LPG through the ALDS. These ALDS will also be installed by Approved Installers only on standardized guidelines/parameters. These guidelines/procedures are available at website www.peso.gov.in.
Present Scenario of Auto LPG
Warming up to all the action with more than 800 stations in the country now and a 300% growth in Auto LPG sale & stations in the year 2015, India is expected to cross the 200 TMTPA (Thousand Metric Tons Per Annum) this year. As it all builds up with Auto LPG being already available in more than 550 cities in the country with over 1200 stations running. For instance, UP has 43 stations running and 27 more would come up within a span of another six months and Rajasthan has 51 stations running and above 100 stations are due for completion very soon. The summaries of licensed stations along with the approvals as on 5.11.2017 from the CCOE for all states are available at www.peso.gov.in and www.iac.org.in with complete details.
Demand of Auto LPG
This is the biggest segment for sale of LPG as most of the state governments in major cities are making compulsory to run public transportation on LPG because CNG is not available everywhere, LPG presently is the second choice but as seen in the world market, it will surely become its first choice which is clear after you go through this project and read the following points mentioned in detail at our website www.premierlpgltd.com or www.iac.org.in. The points are as follows :- Safety Records, Safety in Automobiles, How has LPG fared in other countries?, Reasons for Auto-LPG’S popularity abroad, AUTOGAS / LPG EMISSIONS (COMPARISON), Advantages of Auto LPG over other fuels, Fuel Economics (Cost Comparisons – Wheeler) and Comparison between LPG and CNG.