Indian multinational conglomerate Essar Group plans to open new fuel outlets in Kenya under the Essar brand, as a part of its retail expansion.
The company’s pilot fuel retail outlet was opened in the African country under the franchise model, reported Business Standard,
Essar Group spokesperson was quoted by the website as saying that, "Currently, we are studying the market and, depending on the outcome, may undertake modest expansion."
In 2009, Essar Energy had acquired 50% stake in Kenya Petroleum Refineries (KPRL) from Royal Dutch Shell, BP and Chevron, to expand its global presence.
KPRL signed a $250m financing agreement with Standard Chartered Bank to help the refinery roll out its business transformation plan.
KPRL chief executive Brij Mohan Bansal was quoted by the website as saying that, "This facility would be utilised for our working capital requirements. We will now be able to procure oil, process it and sell the petroleum products to marketing companies."
Essar Oil, a unit of Essar Energy through a franchise model, operates about 1,400 retail outlets with the fuel retail outlets across India sell gasoline under the Essar brand.
Essar is also looking to increase non-fuel retailing activities in its portfolio of retail outlets to provide an additional source of revenue; the company recently agreed to partner with Cafe Coffee Day to expand its non-fuelling revenue sources.