Mahesh A. Weerasena

Sri Lanka

LAUGFS Petroleum (Private) LimitedSouthern Petroleum (Private) Limited

• Chief Executive Officer - LAUGFS Petroleum (Private) Limited

• Director/Chief Executive Officer - Southern Petroleum (Pvt) Ltd in Sri Lanka

• Joined the organization in the year 2001

• Gained corporate experience as the former Area Manager of LAUGFS Gas PLC, and directly involved in introducing LAUGFS LPG domestic cylinders to the market through the dealer network

• Science Graduate of the Open International University,

• Possesses a Diploma in Management from the Postgraduate Institute of Management of Sri Jayawardenapura University

• Advance Course Certificate in Fire and Safety from the Fire Brigade of the Colombo Municipal Council.

• Awarded the Certificate on Safety in LPG from the Shell Gas PLC.

• Over the past two decades I have served as an Administrator cum member of the Senior Management and posses a wide exposure in developing the organization processes and systems.

• Competent Communicator in Chamber Of Young Lankan Entrepreneurs Toastmaster International.

• Married and father of three kids.

Mahesh A. WeerasenaDirector/Chief Executive OfficerSouthern Petroleum (Pvt) Ltd

Chief Executive OfficerLAUGFS Petroleum (Pvt) Ltd

Personal Vision Statement

• To be a positive leader who always has a burning desire to build and take care of the development of the organization to become the third player in the Petroleum Industry in Sri Lanka.

• To be a loving and Caring Husband to my wife and my daughter and two sons, to do everything in my power to make them exemplary citizens in the future.

The BusinessConversion of petrol vehicles to run on Auto Gas (LPG)was introduced by the LAUGFS under the name of Gas Auto Lanka Limited in the year 1994, as a pioneer of this enterprise in Sri Lanka with ten Auto Gas filling station network to carter to motor vehicles converted for Auto Gas.

In August 2004, LAUGFS Petroleum was conceived to give focus and to enhance the operations of the LAUGFS filling stations. Simultaneously, with the liberalization of the petroleum sector, the opportunity to retail all auto fuels including petrol and diesel arose creating a sound platform for the company to enter into petroleum distribution and retail. Pioneering the state of the art filling station concept to Sri Lanka, our service and presence have enabled us to achieve a firm footing in the market.

In 2004, with four filling stations our sales were 290,360 gallons per month , where as in 2014 with 14 filling stations the gallonage have increased up to 1,451,800. Our annual revenue in the business is approximately US $ 78 million.

We are the dealers for Ceylon Petroleum Corporation and Lanka Indian Oil Company who are the current TWO players in this fuel industry in Sri Lanka.

Our ultimate goal is to become the official THIRD player in the petroleum industry in Sri Lanka in 2017 with 100 filling station joint network (LAUGFS 50 and Franchised outlet 50)

It is our foremost intention to open up at least seven new filling stations at selected locations in different Provincials before the end of this financial year (2014/15) and to enhance the number of filling stations to 25 and already we have reached up to 14 including 3 LIOC dealerships. Our greatest expectation is to increase the number of filling stations up to 20 or more at the end of 2014.

Ceylon Petroleum Corporation dealer outlet at Yakkala in Western Province

Lanka Indian Oil Company dealer outlet at Kurunegala in North Western Province

SWOT Analysis

Strengths Weaknesses • Average 20,000 customer base per day

• Adequate skilled work force

• 24 Hour Customer service provider.

• Superior reputation

• An unmatched strength of a strong group of companies. (Eg: Brand Name associated with

Image)• Innovative strategies and technology • Largest Dealer in CPC & LIOC Network

• Flexible customer service

• Lack of space for expansion and enabling to introduce all grade of fuel at all filling stations

• Lower market share • Poor public awareness • Calibration errors in fuel dispensers• Poor Island wide network.• Retention of minor employees

 

Opportunities Threats• Growth in Existing Market (Eg: Increment in vehicle

population)• Emerging technology• Opportunity to upgrade gas stations as fuel filling

stations• Strong economy• Potential market in North & East (Eg: Proposed Filling

Station in Oluvil) • Introduction of NFC fuel cards

• Impact on utilization of Express Highways by Motorists.

• New and existing competitors• Introduction of new motor vehicles with alternative

energy solutions (Eg: Electric Car, Hybrid)• Environmental regulation impose by the Government• Compliances of UDA• Competition coming from the neighboring filling

stations

Obstacles

• Lack of space for expansion and enabling to introduce all grade of fuel at all filling stations

• Lower market share

• Poor public awareness

• Calibration errors in fuel dispensers

• Poor Island wide network.

• Retention of minor employees

Strategic Solutions• Introduction of all fuel in all new filling stations.• Expand the filling station network to cater to wider clientele Island wide.• Open up new fuel filling stations in all express high-ways. • Introduction of Automation system in order to monitor operations closely.• Move the customer through Customer Relationship Ladder. Customer Client Supporter Advocate Monitor Partner • Introduction of NFC cards – use tap and go mechanism with instant SMS notification on

every transaction.• Conduct public awareness program through advertising media.• Pay more attention to ensure the accuracy of pump calibration on testing by utilising

standard master cans regularly.• Retention of minor employees giving them new incentives and conduct periodical proper

training programs.

Process of establishing a new fuel filling station at Kosgoda in Southern Province

1. Selected the suitable land as per the criteria in force

2. Appointed a Consultancy Firm for designing and to over look construction of the proposed filling station

3. Approvals obtained from the respective authorities after obtained Preliminary Clearance Certificate from Urban Development Authority

4. Approval obtained for the council drawing from the Local Authority

5. Authorization from the top management to go ahead with the proposed Kosgoda project

6. Select a competent ICTAD registered contractor and assign the project

7. Commence construction of the proposed filling station with a time frame (gang chart)

8. Install all equipment and test to ensure their performances prior to open for business

9. Obtain COC from the Local Authority

10. Obtain dealership from the Lanka Indian Oil Company and commence business

In order to achieve this task with in the time frame responsibilities have been assigned amongst the CEO, the Consultant, the Senior Operations Manager, the Accountant, the Manager (Southern range), Operation Executives and Supervisors etc.

Objective Date(from)

Date(to)

No. of Days

1 Selected the suitable land Already completed

2 Appointed a Consultancy Firm Already completed

3 Approvals obtained from the respective authorities Already completed

4 Approval obtained for the council drawing Already completed

5 Authorization from the top management 14th July 2014 18th July 2014 4

6 Select a competent ICTAD registered contractor 14th July 2014 21st July 2014 7

7 Commence construction of the proposed filling station 22nd July 2014

8 Install all equipment and test to ensure their performances

25th October 2014

9 Obtain COC from the Local Authority 30th October 2014 14th November 2014

14

10 Obtain dealership from the Lanka Indian Oil Company 24th October 2014 27th October 2014

3

Date plan for establishing a new fuel filling station at Kosgoda in Southern Province

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Total estimated project cost US $ 200,000 Plan to commence the business on 30th October 2014

96

In identifying the necessity of maintaining an adequate stock of fuel at all filling station network at all time, a fruitful decision has been taken to introduce new bowsers (as shown below) in the capacity of 4,375 Gallons or more, in order to strengthen the fuel distribution network.