Business Plan For Lubricants Oils Distribution In South Africa.

Executive Summary

• Overview

Remax Petroleum (Pty) Ltd, (Reg No: K2018421293) hereinafter referred as Remax Petroleum is a Level 3 BBEEE company based in Hillcrest in KwaZulu Natal province . The company was registered in 2018 by a determined and progressive entrepreneur Richard Hermes who owns and entirely controls the business. The company was registered after the director realised the market gap and ever growing demand for lubricants in the market. Following an advert by Sasol (https://capitalnewspapers.co.za/147484/distributor-opportunity-for-sasol-techno-oil/) calling for aspiring SME’s to participate in the lubricant distribution. Siwenya Petroleum has applied to be a distributor in KwaZulu Natal province.

The mini research we conducted shows that there is a shortage of lubricant oils production plants in South Africa. Local market production of lubricants is very few in the country. This led to the importation of substandard lubricants, mainly in Arab countries, and Kenya. In turn, it results in the proliferation of the dealers who supply the substandard oils in the maker and causing damage to cars and machinery that drive significant losses to consumers. Siwenya Petroleum is looking to fill that gap by being a branded Sasol distributor of high-quality products. The distribution plant will have a production capacity of 350,000 litres of lubricants per year.

• Business proposal

Hence Remax Petroleum seeks to be an exclusive Sasol lubricant distributor to retailers, motorists, automobile and commercial customers in the mining, construction, agriculture, power sectors, and the marine industry. The company has negotiated a warehouse lease agreement and the site is accessible to transportation and good infrastructure. We are aware that there are several lubricant oil manufacturing companies all around the KwaZulu Natal, which is why we spent time and resources to conduct a thorough feasibility studies and market survey so as to be well positioned to compete in the market. We will have a CRM software that will enable us manage a one on one relationship with our customers (wholesale distributors) no matter how large they may grow to ,We will ensure that we get our customers involved when making some business decisions that will directly or indirectly affect them.

1. Management capability

The company will leverage from management vast experience in distribution and retail amassed from their previous employment. The director was a Distributor Business Manager (DBM) for KZN (BP), and also acted as a Channel Manager. He assisted in Marketing, focusing on Industrial and Commercial Vehicle Oils (CVO) including Agri and was nominated as the best performer within the BP lubricants sales team in South Africa in 2008. He dealt with various Original Equipment Manufacturer (OEM) Franchised Workshops in both light and heavy-duty businesses.  Also worked with major wholesalers and retailers in High Street (Retail), Biking and Boating. He also worked in the Distribution/Warehouse as a truck driver, in Production as an Empty Packs Store Supervisor ensuring good storekeeping and stock control, at the same time assisting in FLT driving as well delivering finished product from operations to the warehouse.

 

• Business Opportunity

South Africa offers one of the largest and fastest-growing markets for lubricant business. This could be credited to various reasons like the growth of penetration of used cars in the country, more frequent changes of lubricants from older vehicles, and a good level of economic development and regulatory encouragement. In the automotive sector, penetration of used vehicles and subsequent lubricant changes in older vehicles increase the demand for lubricant in the country.

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In the full version, you will have access to the following table of contents:

1. EXECUTIVE SUMMARY. 7

1.1       Overview.. 7

1.2       Deal Structure. 9

1.3       Sales model 10

1.4       Financial Requirements 10

2. COMPANY BACKGROUND INFORMATION.. 11

2.1       Director Information. 11

2.2       Business Information. 11

2.3       Our Vision. 12

2.4       Our Mission. 12

2.5       Key to Success 12

2.6       Objectives 12

2.7       Products 13

3. SWOT ANALYSIS. 14
4. OPERATION AND MANAGEMENT PLAN.. 16

4.1       Management Structure. 17

4.2       Job Roles and Responsibilities 17

4.3       Personel plan. 20

5. INDUSTRY ANALYIS. 21

5.1       South Africa Lubricants Market Size. 21

5.2       South Africa Lubricants Market Analysis 22

5.3       South Africa Lubricants Industry Segmentation. 22

5.4       South Africa Lubricants Market Trends 23

Largest Segment by End User: Automotive. 23

5.5       South Africa Lubricants Industry Overview.. 23

5.6       South Africa Lubricants Market News 23

6. THE MARKET 24

6.1       Lubricant volume growth. 24

6.2       Our Target Market 25

6.3       Our competitive advantage. 26

6.4       Sales Strategies 27

6.4.1        Sales Forecast 27

6.4.2        Promotional Mix Budget 28

6.5       Marketing Strategy. 29

6.6       Publicity and Advertising Strategy. 29

6.7       Our Pricing Strategy. 30

6.8       Payment Options 30

7. TECHNICAL REVIEW.. 31

7.1       Insurance. 31

7.2       Legal and Regulatory. 31

7.3       Key Management Controls 31

7.4       Monthly Management Accounts 31

7.5       Monthly Break Even Analysis 32

7.6       Stock Management and Analysis 32

7.7       Daily Cash Balances 32

7.8       Fixed Assets 32

7.9       Reporting. 32

7.10     Management Information Systems 33

8. IMPLEMENTATION PLAN.. 34
9. FINANCIAL ASSUMPTIONS. 36

9.1       Prices 36

9.2       Income statement 37

9.3       Annual profit and loss 40

9.4       Capital Proposal Breakdown. 40

9.5       Potential Financiers 41

10. CHECK LIST / MILESTONE. 42
11. ANNEXURE FOR FINANCIAL PROJECTIONS. 43