MANILA, Philippines – Eastern Petroleum aims to capture a huge chunk of the 14 million-tank LPG (liquefied petroleum gas) market in the country as it made its entry into the business, its top official said in a recent interview.
Eastern Petroleum chief executive officer Fernando Martinez said the company will tap 500 dealers for its Eastern Composite (EC) Gas cylinder by 2014.
The oil company launched its LPG cylinder dubbed as EC Gas, an explosion-proof cylinder made from composite materials and which is up to 10 kilogram lighter compared to the average weight of LPG made from steel.
The independent oil firm also launched its 500 New Millionaires program through its dealership network.
“The 500 new millionaires will be made possible with the projected conversion of one million LPG steel tanks to EC Gas,” Martinez said.
He said based on EC Gas’s business model presented during the recently concluded 12th Filipino Franchise Show at the World Trade Center, a dealership could translate to potential earnings of P1 million based on monthly sales of 2,500 cylinders of 11-kilogram LPG in its area.
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Martinez said there are 14 million existing LPG tanks, half of which are either due for requalification, rehabilitation and repair or worse, for outright scrapping.
He said franchise financing is also available in case the applicant is short on working capital and equity to finance the business.
Martinez expressed confidence the company can deliver this goal starting 2014.
This developed as Martinez said the company is already processing 193 franchise applicants for immediate activation by Dec. 21 to be able to service the heavy demand during Christmas.