Sri Lanka's
largest gas importer, provider and market leader in LP Gas has announced
agreement into a strategic business partnership with the Co-operative
Development Sri Lanka to develop Litro Gas Points of Sale at selected Co-op
outlets.
This win-win
relationship helps Litro to base its market share widely by taping into the
rural segment in which the Co-op network is strongly present. Although local LP
Gas demand is estimated to be around 100,000 cylinders per day from the
domestic section, there is a high dependence from the rural sector on
alternative cooking fuel such as firewood.
The partnership
established under the leadership and vision of Anil Koswatte, Chairman and CEO
of LGLL, who believes that LPG in Sri Lanka should no longer be a 'luxury
commodity'. The Sri Lankan Co-op network is widespread across all parts of the
country, and this is of fantastic benefit to us in achieving our vision of
turning every household from using firewood that is hazardous to nature and
health to safer, cleaner LP Gas.
He added:
"It is a mutually profitable company. Litro is leveraging the elaborate
network of outlets of Co-op while empowering Co-op in marketing and technology
areas to provide customers with a premium service similar to Litro. This
initiative is going to be a thriving state-owned enterprise and market leader
with colossal and diverse experience and insight to boot.”
Under this
programme, Litro Gas will finance the development of fully-fledged Points of
Sale at selected Co-Op outlets following the strict guidelines for Litro Gas
Health, Protection and Climate. This process expected to provide many Co-op
outlets across the country with a much-needed facelift that gives them a
modern, contemporary appeal and ambience.
Under the
current development, 40 Multi-Purpose Co-operative Services (MPCS) Litro Gas
Stores were established in the district of Anuradhapura and delivered to the
Sri Lankan Department of Co-operative Development for management. The programme
booted off in the Colombo District, with Koswatte recently declaring the
Kolonnawa MPCS Litro Gas Outlet open.
OSL Take: Sri
Lanka's domestic LP gas market is currently facing a shortage due to the
shortfall in supply by the second player in the Sri Lankan market. The state-operated
LP gas distributor is bound to make emergency purchases. Authorities in Sri
Lanka are currently facing issues in its LP gas supply chain due to the
existing duopoly. Foreign LP gas suppliers could explore business/investment
opportunities in Sri Lanka's LP gas market by either supplying LP gas or even
looking at proposing the entry of a third entrant to the domestic market.
No comments:
Post a Comment