A clean fuel, LPG is used in domestic, commercial, and industrial sectors. Affordable, eco-friendly, and highly portable, with time, the demand for this fuel continues to grow. To meet the increasing demand, LPG gas agency dealerships are on the rise. If you are interested in stepping into this industry, there are a few things you must know.
The Indian market for Liquefied Petroleum Gas or LPG is one of the most lucrative industries. According to Mordor Intelligence, the market is likely to grow at a rate of 3.5% CAGR during the period of 2022-2027, making it a fantastic industry to invest in. The wide penetration of LPG into the Indian market is contributing to this significant growth in the demand for this energy source. In this blog, let’s take a look at the challenges and solutions while running a gas agency dealership.
India is currently going through a transition phase in terms of choice of energy. Convenience, affordability, and increased environmental awareness are making people choose LPG over traditional fuels like coal and biogas. Today, LPG is widely used for cooking, heating, and even in industrial processes such as food processing, metal processing, and others. Needless to say, the demand is huge.
Hence, meeting the increasing demand for LPG gas can be a challenge for LPG gas agency dealerships, particularly during peak seasons. In order to meet the demand of the market and contribute to the reputation of your dealership, you need to have a robust supply chain in place. Partnering with multiple suppliers/dealers around your area, besides having a buffer stock can help you meet the demand.
Liquefied petroleum gas is a fuel, which makes it a highly flammable material. Hence, it needs to be handled with stored by following set rules and guidelines. This can be a challenge for dealerships that are not associated with reputable gas agencies.
However, for a dealership of a renowned company, this is not an issue. Since the LPG industry is a highly regulated one, it is important for an LPG gas agency dealership to be associated with the front-runners of the industry. Companies like Shivgas, one of the pioneers in the LPG industry have required certifications and ensure the operations meet the safety standards. Hence, ensure that your agency adheres to all the safety standards and regulations set by the local authorities.
LPG (liquefied petroleum gas) gas agencies are crucial for meeting the growing demand for cooking fuel in both urban and rural areas. However, it may take some time before a gas agency dealership notices significant returns.
First of all, in order to expand your customer base, you need to have a streamlined process and a well-maintained logistics system. Engage in activities that boost the awareness of the services you provide in an area. Timely delivery, prompt customer service, and commitment to safety can help you expand your dealership in no time. Additionally, invest in technology such as online booking systems to streamline and automate your operations.
Since LPG is a mixture of hydrocarbons, they are in their gaseous state under ambient pressure and temperature. Highly portable, they are usually distributed in cylinders. These cylinders need to be stored in particular ways that make them safe.
Hence, a well-designed infrastructure is one of the main aspects of a good LPG gas agency dealership. Setting up a new infrastructure can be difficult, but, not with the right planning. Make sure you plan well before you invest in infrastructural developments such as bringing in storage tanks, delivery vehicles, and filling stations. It is ideal to take time and plan well before you expand in a phased manner.
The LPG industry is highly competitive, and there are already many established players in the market. But that should not stop you from expanding your business. There are several ways to stand out in the competitive market.
Provide exceptional customer service, offer competitive pricing, and ensure timely delivery to build your customer base. Additionally, offer value-added services such as doorstep delivery and refill reminders to appeal to your existing customers and step into new territories as well.
By addressing the challenges and implementing the solutions outlined above, you can grow your business and meet the increasing demand for LPG gas in your area. Starting and scaling up your LPG gas agency requires careful planning and execution. However, you do not have to do it all by yourself.
LPG gas agency dealership by Shivgas offers extraordinary support and assistance to help you get started. With a legacy of over 25 years, Shivgas has a customer-driven approach and is committed to quality. We have a dedicated team of experts to help you with all your queries throughout. Training programmes, as well as prompt support, is what differentiates us from others in the market.