10-08-2012, 11:49 AM
Liquefied Petroleum Gas (LPG) Segment in India
The demand for liquefied petroleum gas (LPG) is increasing rapidly in India. The average demand was 5.76 metric tonnes from 1991–92 to 2005–06. The predicted demand on the basis of the past demand is also exhibiting an increasing trend. The predicted demand for the year 2014–15 is 27.16 metric tonnes, which is greater than the demand of the first 8 years (1990–91 to 1997–98) (from Table 1.1). The average demand for the year 1990–91 to 1997–98 is 26.42 metric tonnes. Table 1.2 indicates that 90% of the product is consumed by domestic consumers. Hence, they can be tapped for further developing the market. Table 1.2 also exhibits the region wise consumption of liquefied petroleum gas (LPG) in India. As per the table, the east region contributes only 12% to the total consumption. The company can try to expand the market by highlighting the use and importance of liquefied petroleum gas (LPG). Table 1.4 indicates that 5 big government companies occupy 96% of the market share and only 4% is occupied by others. Multinational company can focus upon the quality and services offered by them of to break the monopoly of the said companies.