Reliance Industries Limited had announced an entry into the domestic LPG cooking gas segment in October 2016.
Reliance Gas is entering the Pune market with its domestic LPG cooking cylinders. The company will be entering the market with the 5 kg and 10 kg LPG cylinders in the Pune market with plans to get into commercial segment later and go up to 21 kg cylinders. The launch is slated for April 2017.
This will be the first commercial launch after some pilot runs. These LPG cylinders will not have any subsidy components and will sell at market price. Reliance Industries Limited had announced an entry into the domestic LPG cooking gas segment in October 2016. “We have appointed two distributors for Pune city and three for Pune district,” Vivek Yadav, senior manager with Reliance Gas in Pune said.
The price at which these cylinders will be available is not decided yet, Yadav said. But in Rajkot, Gujarat, the company has been selling at an average price of R60 per kg on an average but this is linked to prevailing market price, he said.
According to Yadav, the company plans to get into Pune as the city is among the largest LPG consuming markets in India with consumption of around 27,000 metric tonnes per month.
“LPG consumption trend is up in Pune because of larger number of nuclear families, large scale migration into the city and industries and IT industry growth,” Yadav said.
Reliance Gas and its city-based distributors have identified around 100 dealers. Tempus Distributors LLP will be one of the distributors of Reliance Gas in Pune city. Reliance Gas is also bringing to the market explosion proof, light weight composite cylinder called, LiteSafe.
The Pune distributor, Tempus, will only supply Reliance Gas in these composite LiteSafe cylinders. “These composite cylinders are manufactured by Time Technoplast which do not explode like the steel cylinders and are lighter by 30% to 40%,” Subhash Belekar, business head of Tempus Distributors said.
“Reliance has placed the first order for 10,000 units of the 10 kg cylinder,” Prasanta Panigrahi, senior marketing manager with Time Technoplast said.
Now apart from Reliance Gas, these new composite cylinders from Time Technoplast, will also be tried out on trial based by public sector oil retailer, Hindustan Petroleum Corporation, Panigrahi said.
This is a major breakthrough for Time Technoplast and we are hopeful other public sector OMCs will go for this option, Panigrahi said.
HPCL has a bottling plant in Pune and Gandhinagar so these cylinders would be introduced in Pune and Gandhinagar first, he said. “Once they are launched in Pune and Gandhinagar, the next launch will be in Mumbai,” he said.