Essar Oil, the oil refining and marketing company from the Essar group, is all set to start retail sales of aviation turbine fuel (ATF) in the next 6-9 months.
S Thangapandian, chief executive officer - marketing, Essar Oil, on Tuesday said the company will set up refuelling stations in Gujarat and Rajasthan. It is also planning to set up an ATF dispensing station in Jamnagar by January, for which it is expecting an approval in the next 2-3 weeks. The company has a setup in Jamnagar.
“We will be supplying and distributing ATF at Ahmedabad, Rajkot, Udaipur and Jaipur airports in the next 6-9 months. We have got approvals from Airports Authority of India to set up ATF stations in these four cities,” he said.
“We will spend Rs 45-50 lakh on each bowser that will be used in these airports, and including the rental charges of the airports and locations we will spend close to Rs 1.5-2 crore on each site,” Thangapandian said.
“We are planning to install two bowsers at each location; each bowser has a capacity of 10,000 litres, which is enough for a few days requirement.” The company is in the process of ordering the equipment for these ATF dispensing stations.
“Our Vadinar refinery has a capacity to manufacture 1 lakh kilolitre (kl) of ATF per month, but we will not make more than 1,000-2,000 kl per month initially,” he said.
Essar Oil ATF retailing to yield a margin of Rs 3,000-4,000 per kl. Thangapandian said that Essar Oil’s business model would be based on the ‘cash-and-carry’ model and the company’s focus would be be on the private aviation industry and corporates.
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