The Business of Auto LPG
Auto LPG is easily transportable in tankers and can be stored and dispensed from stand-alone facilities. Auto LPG dispensing equipment is simple and can be built and operated with minimum support infrastructure in a short time.
The Business Model:
Spice Gas Retail Outlets can be operated under various models:
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Dealer Owned Dealer Operated (DODO)
In the DODO model the land where the ALDS is to be established is owned or leased by the dealer. The dealer is also operates the ALDS. The civil construction and equipment costs are borne by the dealer for establishing the ALDS.
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Leased Owned Dealer Operated (LODO)
In the LODO model the land is taken on lease by the company and then sub-leased to the dealer. The dealer operates the ALDS. The civil construction and equipment costs are borne by the dealer for establishing the ALDS.
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Company Owned Dealer Operated (CODO)
Under the CODO model the land is owned by Spice Gas and the ALDS is operated by the dealer. The civil construction and equipment costs are mutually negotiated between the dealer and Spice Gas.
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Company Owned Company Operated (COCO)
Under the COCO model the land is owned by Spice Gas and the ALDS is operated by the company as well.
Approvals:
Upon identifying the Business Model, the required tract of Land is thoroughly surveyed by Spice Gas to ascertain the viability of setting up an ALDS at the location. This survey is essential to ensure that the land meets the legal requirements for setting up of an ALDS as per the norms prescribed by the Chief Controller of Explosives (CCOE) and the Petroleum and Explosive Safety Organisation (PESO).
Once the land has been surveyed and accepted by the company, the layout for the ALDS is designed by competent Spice Gas officials. The layout is then sent for the preliminary approval of the CCOE.
Upon receiving the preliminary approval from the CCOE, under the DODO model - the dealer is required to obtain the local No Objection Certificates (NOCs) from various local bodies, such as Police Commissioner, Fire Department, Pollution Department, District Magistrate, etc. Spice Gas shall provide as much support as possible for obtaining these local approvals. Under all other models the NOCs are obtained by Spice Gas from the local departments.
After the NOCs from the various departments have been received and construction for the ALDS is complete, Spice Gas once again applies to the CCOE for the final approval. The ALDS is made operational as soon as the CCOE has inspected the site and given the final stamp of approval for operating the ALDS.Construction:
The construction of the ALDS can start as soon as the preliminary approval from the CCOE is received.
Spice Gas offers dealers a choice of either a complete turnkey installation which includes civil construction and installation of equipment or an equipment only installation where the civil construction is done by the dealer.
The dealer also has a choice of setting up either two dispensers with two nozzles each (a total of four nozzles) or a single dispenser with two nozzles.
At the dealers option the ALDS can be a completely automated one which can be monitored from anywhere in the world. The dealer may also be provided with a Canopy to protect the installation and staff during bad weather. Spice Gas sources its critical equipment from renowned international manufacturers such as Yenen Engineering, Maser Corken and Blackmer. The ALDS is supplied with a top mounted over-ground pump which provides minimum down time in case of breakdown, unlike submersible pumps. Spice Gas installations include a 20,000 Liter (Water Capacity) storage tank for larger storage capacity and to ensure that the ALDS is never dry.
The erection and commissioning of the equipment is done through highly competent CCOE approved installers. The installation is warranted for a period of 12 months from the date of installation.Supply and Logistics:
Spice Gas procures the highest quality Auto LPG from imported sources and ensures constant availability of the product. The supply of Auto LPG is done from one of the various sourcing location of Spice Gas to the ALDS using 7 MT or 12 MT tankers.
Spice Gas has a well maintained and equipped fleet of tankers on contract to transport Auto LPG in the shortest possible time to the ALDS. The logistics contractors are highly experienced and conscious of the safety measures to be followed during decantation of the tanker. Spice Gas has trained, experienced and highly efficient drivers who take utmost care whilst driving and delivering the Auto LPG.Dispensing:
The Spice Gas tanker carrying the Auto LPG is weighted at an approved weighbridge before and after the delivery to the ALDS and in the presence of the dealer. The dealer is only charged for the actual product which is delivered to the ALDS.
Auto LPG is delivered and invoiced to the dealer on per tonne basis. Spice Gas offers a unique advantage to the dealer by calculating his margin at a conversion rate of 1,800 liters per tonne. This provides a significant additional margin to the dealer as other operators usually have a higher conversion rate per tonne.
Spice Gas maintains complete compliance to Health, Safety and Environment with respect to ALDS Operations.Other Activities:
Other than Auto LPG dispensing operations, the dealer can profit from other ancillary activities such as installation of Auto LPG Conversion Kits, Sale of Lubricants, Service Station, Air Filling Machine, Retail Activities, Installation of ATM and Advertising Hoardings, etc.Maintenance:
The Spice Gas equipment installation is warranted for a period of 12 Months from the date of installation.
During and after the warranty period, the equipment are maintained by highly skilled and equipped technical experts from our own Service Centers across India in the shortest possible lead time.
Spice Gas provides technical support on all fronts from the start of the project to execution to after sales.