Private companies' ATF sales up 63% so far this FY
Private jet fuel suppliers have grown their sales at 63% this fiscal year compared to state-run companies' 5.5% and grabbed nearly 12% market share, aided by an aggressive marketing and supply network expansion.
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RIL-BP and Shell-MRPL, the two private sector JVs engaged in aviation fuel marketing, recorded sales growth of 76.6% and 41.6% respectively in April-November, according to industry data. RIL-BP's market share expanded to 7.7% in April-November from 4.8% a year earlier. Shell-MRPL's share expanded to 3.9% from 3%. Their combined share increased to 11.6% from 7.8%.
As a result, the combined share of state-run companies has shrunk to 88.4% from 92.2%. Their combined sales have grown only 5.5% this fiscal year compared to the industry average of 10%.
India exports half the jet fuel it produces in its refineries, with private refiners being the main exporters. Domestic markets are more attractive to serve than the export market, which encourages private players to push hard and challenge PSUs' dominance.
Regulatory changes over the years have helped the private sector expand, an industry executive said. Open access at most airports allows private players to use infrastructure built by state firms for a fee. They use aggressive marketing techniques to attract airlines, he added.
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