My Eco En­ergy an­nounces first EuroVI fuel

My Eco En­ergy Ltd. (MEE) has an­nounced the launch of In­dizel, the first EuroVI emis­sion com­pli­ant fuel.

Commercial Vehicle - - WHAT'S INSIDE - Story by: Ashish Bha­tia

My Eco En­ergy Ltd. (MEE) has an­nounced the launch of In­dizel, the first EuroVI emis­sion com­pli­ant fuel.

With the tran­si­tion to BSIV emis­sion stan­dards achieved, at­ten­tion is now on the tran­si­tion to BSVI emis­sion stan­dards in 2020. The an­nounce­ment by Pune-based My Eco En­ergy Ltd. (MEE), that the In­dizel fuel is BSVI emis­sion com­pli­ant, comes as a sur­prise there­fore. The rea­son is, there’s still two years for the 2020 dead­line to be met. Es­tab­lished in 2011, MEE spe­cialises in the man­u­fac­ture of bio-diesel. It claims to have launched the first bio-diesel sta­tion at Lonikand, Pune, in 2014. It also claims that the biodiesel it of­fers is made from re­new­able veg­etable oils and feed-stock like palm stearin and palm fatty acid dis­til­late. Called In­dizel, the bio-diesel, ac­cord­ing to Sachin Labde, Co-founder of My Eco En­ergy, is EuroVI emis­sion com­pli­ant. Not ex­actly new, In­dizel, for its man­u­fac­turer ac­counts for a new launch on the pre­text of it be­ing EuroVI emis­sion com­pli­ant. The BSVI emis­sion stan­dard when it ar­rives in 2020 is ex­pected to be quite sim­i­lar to EuroVI.

Claimed to be ca­pa­ble of re­plac­ing con­ven­tional diesel al­to­gether, In­dizel, ac­cord­ing to Labde, is blended from three bio-fu­els avail­able at Sin­ga­pore. MEE has not ap­plied for a patent how­ever, said Labde. To do so, it will have to dis­close the work­ing de­tails, which it does not want to. Claimed to dras­ti­cally re­duce harm­ful emis­sions that con­ven­tional diesel is crit­i­cised for, In­dizel, ex­pressed Labde, emits less car­bon monox­ide, par­tic­u­late mat­ter and un­burned hy­dro­car­bons. He ex­plained, “Over con­ven­tional diesel that con­tains 500 ppm sul­phur,

In­dizel con­tains less than 10 ppm sul­phur.” Ex­pected to help in­dus­tries that con­sume diesel, In­dizel ac­cord­ing to San­tosh Verma, the other Co-founder of My Eco En­ergy, will help to ad­dress press­ing en­vi­ron­men­tal con­cerns. “Not only is In­dizel a bet­ter al­ter­na­tive to or­di­nary diesel, it is also eco­nom­i­cal and suit­able since it can of­fer su­pe­rior fuel ef­fi­ciency.” In­dizel is also claimed to of­fer a smoother ride due to its higher lu­bric­ity quo­tient. Meet­ing Euro­pean (EN 590 Euro6) and BIS (IS 1460) qual­ity re­quire­ments, In­dizel con­firms to Petroleum diesel (HSD) EN590 stan­dard ac­cord­ing to Verma.

Pitch­ing In­dizel to re­tail in­vestors across the coun­try as EuroVI emis­sion com­pli­ant fuel, and per­haps the only one at the mo­ment, MEE has in­stalled five demo pumps across states like Ma­ha­rash­tra, Ra­jasthan, Andhra Pradesh and Te­lan­gana said Labde. While in­ter­ested re­tail in­vestors can ex­pe­ri­ence the dif­fer­ence, the com­pany has in­vested Rs.250 crore into the ven­ture. Tar­get­ing func­tional traders across in­dus­try seg­ments to build a sus­tain­able re­tail net­work, MEE aims to launch 50 pumps over the next three months. Claimed Labde that 600 re­tail­ers have signed-up. On of­fer, added Labde, are multi-func­tional fuel-sta­tion mod­els. Man­power train­ing, equip­ment and guid­ance will be the re­spon­si­bil­ity of MEE. Re­mind­ing of an as­set-light busi­ness model em­ployed by new-age cab and trans­port ag­gre­ga­tors, MEE is aim­ing to carve out a five to 10 per cent mar­ket share of the over­all diesel mar­ket in the next six-to-seven years. The com­pany plans to open 4,000 fuel sta­tions across In­dia in the next four-tofive years. Ex­plained Labde, that the fuel sta­tions will ac­count to dif­fer­ent mod­els such as ‘Ur­ban’, ‘Semi-Ur­ban’, ‘High­way’ and ‘Satel­lite’. They will be fur­ther clas­si­fied as a stand alone busi­ness model, and as a shop-in-shop busi­ness model. Mar­keted such that the price of In­dizel will make it the most favourable among the diesel va­ri­eties avail­able as fuel, MEE, to the chan­nel part­ner, will of­fer a stor­age tank (above ground and be­low ground), a fuel dis­penser, stock (as per us­age), a canopy set-up and re­quired au­to­ma­tion. The over­all in­vest­ment for a re­tailer is ex­pected to be in the re­gion of Rs.40 lakh.

MEE plans to price In­dizel at two-ru­pees less than the price of con­ven­tional diesel. This makes it tricky to as­cer­tain the rev­enue po­ten­tial a re­tailer could look at given the fact, that the prices of diesel vary from state to state, and from time to time. Fuel pric­ing has been left out of the purview of GST as of cur­rent. From June 16, 2017, it has been an­nounced that the prices of petrol and diesel will be re­viewed ev­ery day. While the min­is­ter of road trans­port, Nitin Gad­kari, has been urg­ing peo­ple and in­dus­tries to shift to greener ways of work­ing, and use al­ter­nate fu­els, In­dizel as a bio-fuel could at­tract 18 per cent GST, mak­ing it costlier than con­ven­tional diesel. The Bio-diesel As­so­ci­a­tion of In­dia, in a state­ment has al­ready made it clear that higher GST rates could ad­versely im­pact them. Hav­ing ze­roed on three lo­ca­tions – Kol­ha­pur, Noida and Vishaka­p­at­nam, In­dizel, ac­cord­ing to Labde, is out of the purview of the petroleum Act due to its high flash point. If the high flash point and com­pet­i­tive pric­ing will present In­dizel with a strong ad­van­tage, MEE, in the face of stiff com­pe­ti­tion from the gov­ern­ment owned mighty PSUs has a tough task of con­vinc­ing mo­torists ad deal­ers to be a part, and sus­tain. Op­por­tu­ni­ties for MEE lie in sec­tors like Rail­ways and State Trans­port Un­der­tak­ings (STUs). They arise out of the premise that a gov­ern­ment man­date re­quires con­ven­tional fu­els to be blended with five to 10 per cent bio-fu­els by 2018. Stated Verma, “Man­dates like these could fur­ther boost the po­ten­tial of our prod­uct, and in­crease the over­all mar­ket size of bio-fu­els. It would also help bio-fu­els to at­tain a sig­nif­i­cant mar­ket share for com­pa­nies like us.” MEE is look­ing at an early mover ad­van­tage. To take ad­van­tage, MEE should con­vince as well as as­sure its users of qual­ity, con­sis­tency and cost.

⇦ Sachin Labde, Co-founder, My Eco En­ergy Ltd.

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