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Lpg Marketing Rural

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Lpg Marketing Rural
Emerging Challenge in the LPG Sector Emerging Challenge in the LPG Sector
“Challenges in Rural Market ” “Challenges in Rural Market ”

Mr. M Q Khan, Director (LPG Infrastructure India Pvt. Ltd.) Mr. M Q Khan, Director (LPG Infrastructure India Pvt. Ltd.) Reliance Industries Ltd. Reliance Industries Ltd.

1

Indian Scenario
Urban Population (Million), 2001 House Holds (Million), 2001 LPG Connections (as of 01.04.04 (Million) LPG Consumption (MMTPA) As of 01.04.04 LPG Per Capita Consumption KG (PA) Penetration 286 54 68.52 7.95 Rural 742 138 8.58 1.55 Total 1028 192 77.10 9.5

128 >100%

85 5.9%

121 38.5 %

Source : 2001 Census, OCC & MDRA
2

Rural Market Growth in Rural Purchasing Power (1989-2002)
12000 PCI (Rs. per annum) 10000 8000 6000 3795 4000 2000 0 1989-90 1994-95 2001-02 7740 6886 6070 4478 9665

0.55

0.58

0.63

Urban

Rural

Annual growth (%) – Keeping pace with urban growth Urban 2.4 3.2 Rural 3.4 4.5
Source : Rural Market-Next Frontier for Manufacturers, Rajesh Shukla, NCAER 3

Rural Market Income distribution (Million population)
400 312 300 200 100 0 Low Rural Low er middle Middle high Urban 90 41 288

2001-02
130 153

Income Growth Per Annum %
Rural Urban

Low( 90k)

-7.3 -10.1 2.5 -1.7 11.3 7.4

400 300 200 100 17 0 Low Rural

352

2009-10
170 79

305

272

Low er middle

Middle high Urban

*Source : Indian Market Demographics Report 2002 Rajesh Shukla, NCAER

4

Just Consider this…… Just Consider this……

5

LPG in Rural Market…. • All India rural population being 72% (2001), current LPG rural penetration is only 5.9% (2004)! • Out of around 29 mln rural HHs (2001) having annual income of over 50K, only 8.58 mln (30%) rural HHs have LPG connection (2004). • Out of around 73 mln rural HHs (2001) having annual income of over 25K, only 8.58 mln (12%) rural HHs have LPG connection (2004).

6

Some Rural Market Facts
42 million rural HHs availing banking services in

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