Commodity trader nimble in its evolution
Company focuses on crude, ethanol and petroleum
FLEXIBILITY is the driving force behind BioUrja Trading’s evolving business, CEO Amit Bhandari said.
Just one example: Last year Bhandari suspended its crude oil-by-rail transportation lines, even though it generated nearly $1.7 billion in revenue in 2013. He didn’t agonize over the decision as there were new pipelines coming online that would take business away and there was uncertainty over new regulations coming for the sector.
BioUrja, a Houston energy commodity company that focuses on the purchase and sale of ethanol, petroleum products and crude oil, didn’t lose sleep over the drop in rail revenue to $580 million last year.
“We are focused on risk management and profits,” said Bhandari, a former Exxon Mobil executive who founded BioUrja in 2006.
He shifted tbe focus to other areas, including physical natural gas trading, and this year will get into the power trading business.
BioUrja and its related companies — owned by Bhandari and other family members — under the same general umbrella — also provide fuel logistics services, grains trading and supply, accounting and compliance services for the fuel industry and fuel supply project development. The companies, which employ 146 people, including 36 in Houston, brought in $3.8 billion in revenue last year, down from $5.29 billion in 2013.
It was No. 3 on the Chronicle’s Top 100 list of private companies, down from No. 2 last year.
Bhandari’s newest opportunities include developing an ethanol plant in Brazil, investing in an ethanol plant in Mexico and putting more money into grain elevators. Last year, he entered the rail-car cleaning business.
He considered bringing some outside capital last year but decided not to after the commodity price drop made such an investment less attractive to outside firms.
Eventually the company make look for outside capital to help it grow in new areas. But for now, the company, which has good liquidity, plans to stay private.