My Eco Energy Launches 1st Bio-fuel Station; 500 More to Come
- Harshal Y Desai

My Eco Energy (MEE), a Pune-based company engaged in the manufacture and distribution of bio-fuels, has launched its first bio-diesel station near Pune. The retail price of its product Indizel is Rs 64 per litre.

Indizel is a brand of biodiesel which is a clean-burning eco-friendly alternative form of petroleum diesel. According to the company, it does not require modifications to a diesel engine to be used and is a complete substitute for conventional petroleum diesel. MEE claims that Indizel has higher lubricating properties which give increases engine life.

Expansion Plan
The organisation is now planning to establish 500 such fuel stations and 2,000 outlets in three different, smaller, formats in the next 18-24 months.

When asked to comment on the roadmap ahead, Santosh Verma, Director, MEE, says that to attain a significant customer base, the company has outlined a strategic marketing road-map to reach the domestic market segments. “Today, we at My Eco Energy primarily cater to Maharashtra and other neighboring states in the initial phase. Future plans include extending our network force to over 500 dealer owned retail pumps and about 2000 to 3000 smaller outlets in Maharashtra within two year time,” he adds.

Verma is confident of the company’s expansion plans and believes there would not be any problem in attaining the target because of the tremendous amount of interest among dealers and retailers. However, he also says that there is a lack of awareness about bio-fuel in general and this is a hurdle that the company needs to overcome.

“Once we do that we are sorted. To overcome this challenge we are trying to use a very creative and innovative communication strategy which is cost effective but serves our purpose of reaching out to our prospective consumers. Aggressive use of social media, interesting media campaigns and coming up with more fuel stations in the near future are all the ways to meet the end,” Verma asserts.

Bio-diesel Market
Verma further explains that the bio-fuel market in India is at a very nascent stage and therefore there is a huge market potential. “Just to give you a brief backgrounder,” he continues, “India is the 4th largest consumer as well as the importer of crude oil and out of these imports diesel accounts for 44 per cent. Even then there is a huge gap between the demand and supply of diesel. Therefore, Indizel being a complete alternative to diesel has a huge market potential and we are looking forward to it,” he claims.

Commenting on the challenges, he says that there are two major challenges firstly lack of awareness and secondly lack of infrastructure that supports abundant manufacturing and processing of biodiesel in the country.

Verma is of the opinion that with the government of India laying down some heavy biodiesel initiatives there is hope that there would be tremendous growth in the bio-fuel industry in India.

MEE claims to have designed a unique model wherein it is not dependent on one feedstock for the production of Indizel. It - leveraging on its technological association with Go Fuels - can produce Indizel from multiple feed stocks at multiple locations.

According to Verma, there is a huge lag between the demand and supply so there is a huge market to capture. He explains that though bio fuel is an alternative to diesel it can never replace diesel. Bio fuel can just extend the lifespan of the conventional fuel medium. Verma comments, “We try manufacturing high quality bio-fuel which is at par or even better than normal diesel with the help of Go Fuels.”

The promoters of MEE have invested about Rs 80 crore in India so far and plan to invest a total of Rs 250 crore raised through equity and internal accruals in the India venture.