ODAA ENERGY

ENERGY LOB

The following are the basic learnings we need to have from our previous year experience. Following a review of previous year performance, a couple of strategic directions relevant to the development of the business are also touched on. Strategic threats for the healthy growth are also raised.

Construction of Retail Sites

The construction of new sites has resulted in a major mismanagement of company’s resources. In fact, this activity has resulted in the change of management in the line of business. The cost of construction of a typical retail station is about 5-7 million. Our sites cost on an average of 45-50 million (2 sites plus a depot containing 10, 50K storage tanks). This results in an average cost of 20-25 million per retail station.

Energy Outlook 2020/21

Product Portfolios Expansion

Increasing the product portfolios is another area we need to focus on. This is the other area we made a mistake on when we first started operation. We made a deliberate effort to import lubricants. We took all the necessary steps to start importing Shell products. Finally, the product was held hostage by the BoDs.

HR Development & Recruitment Process

When ODAA Energy first started its official operation, it only had a few positions filled. The people who were holding positions in the line business had to cover additionally required positions to make the dream a reality. In other words, the energy line of business has always been starved of the required number and quality of personnel. In the year 2019/20, attempts were made to increase the number of resources.

Detailed Overview by ENERGY LOB - 2019/20

"The energy line of business has little investment done on it. The investment done in the construction of two retail sites was highly costly. Apparent resource mismanagement and gross negligence were also detected in the way the two sites were built. Several sites could have been built using the resources spent on just the two sites.
Despite these problems, the energy line of business started operation on September 21, 2019. It was the most wonderful time to see our work bear fruit. We started operation with just two CODO sites. Both sites were functional at the time of inauguration. Since then, we were able to add 14 DODO sites. These sites were coming to join ODAA at a steady pace throughout the course of the year.
Once people in the industry start hearing our presence in the petroleum industry, the DODO sites start flocking to us at an increasing rate. This was an exceptionally good opportunity for us to expand our network with a minimal investment. We did make use of this opportunity and turned it to our advantage
In 2019/20 lots of problems emerged as it relates to this line of business. The energy line of business has been in desperate need of expansion and market share growth. For its growth, it requires a continuous supply of bulk fuel transporting vehicles. There is, however, a fixed supply of bulk fuel transporters in the market. Most of them are working with the big players. The same players in the market offered these big transporters a continuously available loan arrangement so that they get to stay with them for the long haul. It is indeed a great plan on their part to keep their supply of fuel steady.
This kind of arrangement and the legally binding contract which is also enforced by the regulatory bodies is helping these players as an exit barrier for the smaller petroleum companies. As a result of this exit barrier, our company is unable to acquire the required number of vehicles from the transport market. As a direct correlation of this problem, we were unable to expedite our growth at a pace we had planned it to be from the outset. Despite this problem we were able to innovate a new and hybrid service design which will help us get what we want from the existing market. We will also continue to do so until we break into the market and become a formidable force in the industry.
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the petroleum wing of the company which operates in the area of fuel, lubricants and related services.

Other Services

ODAA Transport

huge transport wing provides Cross-country travel services with 50+ ultra-modern VOLVO buses.

ODAA Energy

the petroleum wing of the company which operates in the area of fuel, lubricants and related services.