From the current 39 outlets the company plans to open 400 outlets in five years
Essar Oil UK, led by Ruia brothers, has plans in expanding its retail fuel business to 400 outlets in five years, in addition to investing $250 million in the current financial year on refinery up-gradation activities which will increase the company’s annual through-put to 75 million barrels and raise efficiency in processing cheaper crudes.
Director and Chief Executive at Essar Oil UK, S. Thangapandia, said, “From 39 outlets currently we are looking at reaching around 55-60 outlets by the end of this year and have set a target to ramp it up to 400 outlets in five years. We are still deciding on the ownership model of these outlets, how much will be given under franchise and how many will be company owned. Also, $250 million does not include investment on the retail side. We are yet to decide on the retail expansion investment.”
The company has reduced its dependency on North Sea crude to 70-75 percent from 85 percent a year ago, in a bid to further diversify its crude sourcing.“The major investment we have confirmed in Stanlow will materially increase throughput and further grow revenues, building on the tremendous progress we have made in turning around the business over the past six years,” said Prashant Ruia, Essar Oil UK non-executive chairman. “It also demonstrates Essar’s commitment to remain invested in the fuel sector.”
With an annual refining capacity of 9.09 Million ton Per Annum (MMTPA), Essar’s Stanlow refinery is one of the largest refineries in Europe, which the company is looking at expanding to 9.72 MMTPA by the end of the current fiscal in March 2018. Stanlow refinery alone meets 16 percent of UK’s fuel requirement.
In the fourth quarter ended March 2017, a tepid growth in through-put was witnessed by the Stanlow refinery which increased by around one percent to 2.22 Million Tons (MMT). As compared to the year ago period, the company’s full year refinery through-put increased by 1.33 percent to 9.09 MMT in 2016-2017. Source: Economic Times PWKD11092017
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