COMPANY PROFILE

CALL TIME GAS SOLUTIONS is a newly-established LPG (Liquefied Petroleum Gas)

supplier in Uganda. The operating scope of the company mainly focuses on the
concept of "Door to Door" (Doorstep) service. Mr. Robins Mutungire is the founder
and sole promoter of CALL TIME GAS SOLUTIONS who has a solid 10 years
experience in petroleum retailing and LPG gas supply behind him. Up to this day of
floating CALL TIME GAS SOLUTIONS to execute the operations and business end of
the enterprise, Mr. Robins Mutungire has been quite a focused, consistent and steady
performer in this industry sector to such an extent that he has managed to built an
extensive and reliable network of market contacts as well the relevant LPG
merchandising skills and experience that stands the company in good stead within the
door-to-door LPG gas supply and distribution market in Uganda.

WHO WE ARE
LPG is propane or butane or a mixture of both that is obtained from natural gas or as
a by-product from oil refining. Propane and butane have different uses and cant be
interchanged and yet both are indispensable in the home, farming, industry and
commercial sectors. To ensure your LPG gas solutions are properly covered you need a
provider with expertise and prompt service.
CALL TIME GAS SOLUTIONS professionally meets the evolving gas solution needs of
various industries, businesses and homes. CALL TIME GAS SOLUTIONS is a
strongly-motivated and purpose-driven business firm that strives for quality,
commitment and an impeccable trading reputation in the petroleum industry.
Offering door-to-door (doorstep) delivery to stores, petrol stations, schools, companies,
restaurants, hotels, factories and homes, CALL TIME GAS SOLUTIONS stands for
comprehensive services. With professional backing, quality facilities and resources, a
solid approach, diverse services, prompt delivery, and a long-standing industry backup experience, CALL TIME GAS SOLUTIONS is the source for all your gas solutions.

WHAT WE DO
CALL TIME GAS SOLUTIONS performs the function of buying LPG gas from BOC
Gases (U) Ltd. and distributing/retailing it to different end-users in the market using
the concept of Door to Door delivery. We supply hospitality industry consumers as well
as home users and industrial users. We cover the whole of Kampala (Capital City) and
the neighbouring towns like Entebbe, where we do the physical delivery. We offer the
strength and the reliability of a big company with the friendliness and personal
services of small company. Our customers use the LPG for variety of uses but mainly

for cooking, heating, grilling and drying and in experimental basis in the automotive
as fuel. With CALL TIME GAS SOLUTIONS you get more than an LPG supplier, you
get an expert and a partner.
CALL TIME GAS SOLUTIONS - Reliability, Convenience and Affordability.

ABOUT US
With a solid 10 years track record in the business of petroleum retailing and LPG
(Liquefied Petroleum Gas) supply to the Ugandan market, the lead promoter of the
company - Mr. Robins Mutungire decided it was about time to establish a formal
business entity which is a recognized and respected entrepreneurial organization to
formally handle all the integral business aspects and trading issues with the relevant
market end-buyers that would accordingly confer it a viable and enduring profile as a
market leader in the industry a few years hence. CALL TIME GAS SOLUTIONS will
henceforth aspire to reach that lofty position and will not allow to be consumed or
overtaken by complacency but will commit to constantly striving to improve
its services that we provide to its valued customers.
We pride ourselves on our commitment to customer care and are proud of our local
Customer Operations Centers which allow us to provide our customers with the level
of service that they expect - wherever you live in the Kampala/Entebbe area. We
recognize the critical role our staff plays in delivering outstanding service to every
customer and, we realize the importance of investment in our employee's training and
development in order to achieve a standard of excellence for all our customers.
This level of quality is the driving engine of CALL TIME GAS SOLUTIONS by which it
is aiming to achieve ISO 9001 to demonstrate how important it is to us that the goods
and services we provide are of a quality that customers expect. CALL TIME GAS
SOLUTIONS is also planning to embark on a rural energy-supply program in the nottoo-distant future. The purpose of this program is to ensure that tens of thousands of
homes and businesses can utilize modern, environmentally sensitive appliances
wherever they choose to live.
The achievement of outstanding results in a growing range of LPG gas products
underscores our principle of continuing investment and forward thinking culture.
Such a forward-looking stance is also underpinned by the notion of trading in
products which are influenced by our commitment to becoming greener and to help
reduce pollution. CALL TIME GAS SOLUTIONS therefore shortly plans on opening 4
network branches around Kampala and before the middle of next year and an equal
number of branches to be opened both in Kampala and Entebbe areas on a year-onyear rolling development plan basis, such that we can take our valued services nearer
to our customers. All this means that within the next 2 3 year time-frame from now,

customers can feel a high level of confidence, comfort and total satisfaction in our
continuous fuel supply capability.

WE BELIEVE
Our Mission
To be a reliable and reputable energy distribution and delivery company in Uganda,
enhancing the lives of millions; focusing on enhancement of productivity, quality and
profitability; caring for customers and employees; caring for environment protection
and cultural heritage.

Our Vision
To excel as the leading gas retailer/distributor in Uganda, providing safe and reliable
gas supply at affordable prices to our customers with excellent service. To establish a
reputable name associated with caring for and delighting the customers with high
quality products and innovative services across a range of domestic markets with
aggressive growth and delivering superior financial performance. The Company will be
a model of excellence in meeting social commitment, environment, health and safety
norms and in employee welfare and relations.
Actions & Values
Execution with Uncompromising
SOLUTIONS represents.

Integrity,

that

is

what

CALL

TIME

GAS

We are a team that walks the talk with a culture that is committed to Engage, Solve,
Deliver and Enhance.

Our Core Purpose

Delivering Safe and Clean Energy Solutions for Generations
ACTION

VALUES

Engage

>>

Respect, Openness

Solve

>>

Creativity, Customer Centricity

Deliver

>>

Professionalism, Safety

Enhance

>>

Teamwork, Pride

OUR TEAM AND VALUES

CALL TIME GAS SOLUTIONS is highly committed to building success banking on its
dedicated and informed team and long history of experience of its founder and lead
promoter that stretches back to the last 10 years. To this end, the company has put
together an expert team of members who are always ready to fulfill customers needs
while the companys safe, secure and environmentally friendly approach ensures it
gives more to the community. CALL TIME GAS SOLUTIONS is dedicated to
professionally serving its customers via the latest technology, premium quality
products and prompt distribution services. To this end, we emphasize offering
competitive prices and respecting our clients real requirements.

SERVICES & FACILITIES

OUR SERVICES AND ADDED VALUE

Business
We are a firm believer in creativity and innovation. We continuously tap into the stateof-the-art technology to meet new market landscapes, assist business partners to
enhance their organizational productivity and bring their businesses to greater
heights.
We have a suite of business solutions that cater for different operational needs. CALL
TIME GAS SOLUTIONS efficiently delivers gas on behalf of its main supplier (BOC
Gases (U) Ltd.) that can be used in various different industries across Uganda. It is
popularly used in manufacturing, printing, food and beverage, hospitality, healthcare,
and automotive repair industries. CALL TIME GAS SOLUTIONS has the expertise,
technical know-how and experience to provide complete solutions to meet customers
operational needs. Using BOC Gases will give the customers a peace of mind as CALL
TIME GAS SOLUTIONS will be involved in the direct delivery/distribution, physical
inspection, testing and commissioning of the gas supply to the appliances and
equipment. CALL TIME GAS SOLUTIONS provides assurance to customers on safety
aspect by ensuring that the LPG gas appliances and installations carried out in the

customers premises comply fully and in accordance with the relevant Act, Regulation,
Code of Practice and requirements.
To facilitate the difficult start-up of a new business, CALL TIME GAS SOLUTIONS
provides innovative, cost effective and sustainable package to new customers. These
packages will help customers to avoid high financial commitment in relation to LPG
gas appliances and installations during the initial business start-up.
Our services encompass:

Cylinder filling service at our principal suppliers factory (BOC Gases (U) Ltd.)
for individuals and enterprises
Door to door distribution and delivery of LPG cylinders to stores, petrol stations,
hotels, restaurants, schools, hospitals, homes, buildings, companies, factories
and more

Our added value includes:

Securing a safe, efficient, clean and economical solution

Competitive prices
Client-focused, placing great emphasis on satisfaction and meeting real needs
Fully equipped facilities, diverse services, efficient delivery network
Backed by a well-established and renowned mother company
Dedicated to innovation and the introduction of new products and solutions

ABOUT LPG
LPG is the abbreviation of either liquid petroleum gas or liquefied petroleum gas. LPG
is a mixture of gases, chiefly propane and butane. It is produced commercially from
petroleum and stored under pressure to keep it in a liquid state. The boiling point of
liquefied petroleum gas varies from about -44C to 0C (-47F to 32F), so that the
pressure required to 'liquefy' it is considerable and the containers for it must be of
heavy steel.
When prepared as fuel, LPG is largely propane; common uses are for powering
automotive vehicles, for cooking and heating, and sometimes for lighting in rural
areas. LPG is an attractive fuel for internal-combustion engines; because it burns with
little air pollution and little solid residue, it does not dilute lubricants, and it has a
high octane rating.

Consumers are becoming more concerned about the overall environment, as well as,
cost of heating and cooling homes. Homeowners are now beginning to understand the
LPG is the cleanest fossil fuel available. According to the United Nations International
Panel on Climate Change (IPCC,) LPG is not a greenhouse gas and is assigned a global
warming potential (GWP) factor of zero. All it boils down LPG is both cleaner and
greener than other alternative fuels.
Use of LPG instead of other fossil fuels can make a real contribution to lowering the
world's carbon footprint, helping mitigate the effects of climate change. Greenhouse
Gas emissions are having a measurably negative effect on our planet and the majority
of these emissions are released in the form of CO2 burning from fossil fuels. For us to
make a global impact, we need to get alignment between our energy policies and our
climate change policies. Each and every homeowner can also take action and
contribute their part.
LPG: The fuel of the new Generation
LPG Gaining Popularity
Liquefied Petroleum Gas is fast gaining popularity in industries for a wide variety of
uses.

For industries today, quality, costs, efficiency, environment, heat controllability,

among others, are major concerns when it comes to choosing the right fuel.
LPG addresses all these - making it the ideal fuel choice for a host of industrial
applications.
LPG is a pure, clean energy source which provides even and controllable heat.
This makes it the ideal heat and power source for a wide range of industrial
uses.
Since LPG is almost free from sulphur, it can be used in sensitive situations
such as chemical processes, etc.
LPG is also used for space and process heating to power industrial ovens, kilns,
furnaces, machinery and in food processing units.

Properties of LPG
LPG is twice as heavy as air and half as heavy as water.
LPG is colourless and odourless; hence an odorent is used to detect leaks.
LPG can be compressed at a ratio of 1:250, which enables it to be marked in
portable containers in liquid form.
LPG is safe fuel and ignities only within the specified LPG- Air ratio of 2% to 9%.
A high calorific value of 11,900 Kcal/Kg results in high efficiency heat output.
Advantage of LPG Compared to other fuels
Clean Burning
No soot, burners have a longer life - so maintenance is low

 No spillage as it vaporises at atmospheric temperature and pressure.

Effects of corrosion are greatly reduced
Instantly controllable flame temperature
Avoids scaling and decarborising of parts
Environmentally friendly fuel, with minimal sulphur content and sulphur- free
emissions
Very high efficiency with direct firing system
Instant heat for faster warm-up and cool-down
Free form peak time premium rates, unlike electricity. One rate round the clock
Can be used for a variety of applications

Specifications of LPG as per IS 4576 -1999

No.

Requirement for
Commercial

Characteristics

Description

Butane - Propane
Mixture

85

1050 (Note 2)

D1267

Vapour Pressure at 40O C in KPa gauge

Max (Note 1)

Volatility: Evaporation Temp in OC for 95%

2.0
by Vol. at 760mm Hg pressure max.

D1837

Total volatile Sulphur ppm Max.

D2784
D3246

Copper Strip corrosion at 38 O C for 1 hour Not worse than No. 1 D1838

Hydrogen Sulphide

Pass

D2420 (Note 3)

Free water content

None

Visual

150

Comparison with other fuels

Fuel

KCal / Kg(At room temperature) Heat transfer efficiency

LPG

11900

85%

SKO

11100

50%

Light Diesel Oil (LDO) 10700

60%

Furnace Oil (FO)

10280

55%

Natural Gas (CNG)

Pass

65%

Coal

None

15%

Firewood

4400

15% to 20%

Electricity

860/Kw

65%

CONTACT US
All general enquiries contact:

CALL TIME GAS SOLUTIONS

Kiawtule Rd.,
Corner View Bldg., Ntinda,
P.O.Box 31119,
Kampala
UGANDA.
Telephone: +256-754-95 49 64/794-95 49 64/714-95 49 64/701-95 49 64

BUSINESS PLAN
1.0

PRODUCT/SERVICE
1.1

Product/Service Offerings

CALL TIME GAS SOLUTIONS offers specialized services to its customers.

Cylinder gas is offered to customers in private homes and other commercial and
industrial users. Cylinders are changed once a month
Installation Kits such as pig tails, and regulators/accessories are sold to customers.
Domestic LPG
Overview
BOC GAS. The BOC brand of Liquefied Petroleum Gas (LPG), popularly known as
cooking gas, is a mixture of hydrocarbons which are gaseous at normal temperature,
but can be liquefied at moderate pressure, and can be stored in cylinders as a liquid
under pressure, and is drawn out and used as gas.
Quality
LPG is a colourless gas. LPG is not poisonous. However, at the time of production,
mercaptan (a chemical compound) is added to it so as to give the now familiar foul
smell for easy detection of gas in the air. Even very small quantities of gas can be
detected by this smell.
Safety
Since LPG is almost twice the weight of air it tends to settle down at floor level,
particularly in depressions. Hence, care has to be taken in placing the gas
installations in the house. Also the fact that 1 cc. of liquid LPG multiplies into
about 270 cc. of gaseous LPG helps it spread very rapidly in the atmosphere. Hence,
if a gas cylinder leaks, it should be immediately removed to an open area.
Industrial and Commercial LPG

BOC Gas is a clean fuel and as an energy source represents a valuable contribution to
the ongoing fight to conserve energy and protect the environment. With its high
calorific value, BOC Gas has a wealth of applications and is dependable. Apart from
being used as a domestic fuel for cooking and heating, it is also widely used for
various commercial and industrial applications like Hotels, Restaurants, Bakeries,
Ceramics, Textiles, Tea, Poultry as well as specialized applications that include Food
Processing and Aerosol Propellants. In the Automotive segment, BOC Gas is emerging
as a promising alternate fuel.
Wherever heat, light or power is required, BOC Gas can be used. When BOC Gas
provides heat, power, and light together, the combined system is a very cost effective
total energy source.

CALL TIME GAS SOLUTIONS is committed to give quality customer service with a
smile, by 24 hours refill delivery on all days and necessary assistance to customers
thru customer service centres in Kampala and Entebbe area.
1.2

Need/Problem to be Addressed by Product/Service

With increased awareness of the problems associated with burning fuel wood, CALL
TIME GAS SOLUTIONS seeks to reduce on the effects of the current cooking methods
as this will save many lives from the ill effects of fuel wood.
1.3

Acquisition and Delivery of Product/Service

The company will sign a Service Level Agreement with BOC Gases (U) Ltd. to supply
gas in 45 kg cylinders/bottles that will be delivered by CALL TIME GAS SOLUTIONS
At the customers preferred premises.
At some later stage, customers will be helped with subsides to enable them buy
cookers which seem to be a big reason for not using LPGas as an alternative safe and
clean energy source.
CALL TIME GAS SOLUTIONS will deliver the LPGas to customers in cylinders
belonging to BOC Gases (U) Ltd. using a cylinder-rotation process: whereby we shall
deliver full LPGas cylinders to a customers premises and in exchange pick up the
empty LPGas cylinders for back-delivery and re-fill at the BOC Gases (U) Ltd. plant on
7th Street Industrial Area, Kampala.
This LPGas cylinder-rotation process shall be done once every month for each one of
the customers serviced by our door-to-door (doorstep) gas supply and delivery
program.

10

2.0

MARKET AND MARKETING ASPECTS

The LPG market in Uganda is still at an incipient stage with a total market size of some
6,580.44 tons per year in 2009. Given Ugandas population of some 32.37 million
people, the per capita consumption of LPG is an abysmal 0.20 kg per year.
2.1

LPG Consumption in Uganda

According to information provided by the Uganda Bureau of Statistics (UBOS) and

Uganda Revenue Authority (URA), the total consumption of LPG in Uganda was as
follows:
Year
2006
2007
2008
2009

Tons
3,908,.30
4,678.30
5,599.55
6,580.44

Average per Month

325.69
389.86
466.63
548.37

Annual sales in 2009 were estimated to be about 7,500 tons. It is estimated that some
80% of LPG is consumed in the urban areas of Kampala, Entebbe, Jinja, Mbarara, and
Mbale where the per capita income is far higher than the rest of the country. Thus
while the national average per capita consumption of LPG is very low, the data is in
fact very skewed; the per capita consumption in urban Kampala and the other

11

mentioned towns is very much higher (about 5.4 kg per year). The consumption in the
smaller towns and rural areas is abysmally low due to the very low income and the
fact that high LPG transportation costs makes LPG more expensive in areas distant
from Kampala.
Presently about 90% of all LPG is consumed in the domestic sector and in hotels and
restaurants. The industrial sector accounts for only about 10% of the total
consumption. Based on the growth rate over the past few years, it is probable that the
demand for LPG could double over the next 5 years. This trend could be sustained and
increased with a concerted effort to improve sales of LPG in smaller provinces and
towns.
The 2002 Uganda National Household Budget Survey statistics shows that only 6.6%
of the families (households) were equipped with LPG stoves. However, recent market
surveys in the greater Kampala area (including Entebbe municipality) indicate that in
higher income households (with monthly income of over $1,500 per year) some 24% of
households have a gas stove. It is estimated that some 10% of households in Uganda
have annual income of over $1,500 per year. At an estimated consumption of 5.5 kg
per month among households that can afford to use LPG, the potential consumption
of LPG in this small segment of households alone could be about 35,600 tons per year.
2.2

Market

Currently, the market that CALL TIME GAS SOLUTIONS is targeting to serve with
LPG products and services ranges from domestic homesteads to the hospitality
industry (hotels and restaurants).
The company also plans to extend its service to other people who do not live in
organized homesteads by installing a system which meets the health and safety stands
of the company.
Plans are also underway to extend the service to hospitals, nursing homes and
schools, light commercial industries, autogas and farming.
2.3

Competitors

Currently, Ugandas energy consumption matrix stands at about 93% biomass; 2%

LPG; 5% use electricity.
Our primary competitors include Ramco Enterprises Limited, Wana Solutions
Limited, and four oil companies supplying gas too.
Secondary competitors are Umeme Electricity (UEDCL) suppliers.
Tertiary

competitors

are

charcoal

and

firewood

sellers.

However none of the competitors use Changeovers for customers who use cylinders.

12

2.4

Competitive Advantage

Fuel energy content is assumed to be 15 MJ/kg for firewood and 45.7 MJ/kg for LPG.
Device efficiency is assumed to be 15% for charcoal and 60% for the LPG cooker.
It is clean, affordable and reliable.
2.5

Marketing and Distribution Strategy

CALL TIME GAS SOLUTIONS plans to market its products and services using a wide
range of sales/marketing techniques which will include the following:

Word-of-mouth marketing generated out of repeat and referral business orders

Promotional tools including:Stickers on retail outlets
Football tournaments and debates and essay competitions in schools through
radio and TV adverts
Conferences and Research
Brochures, leaflets, flyers, business cards
2.6

Business Growth Strategies

The company will be positioned on its brand of "Safe and Clean Energy for a
Healthier Nation.
Challenges of charcoal and firewood: the company will lobby parliament to pass
a law on firewood use that degrades the environment and significantly increases
Ugandas carbon footprint.

Improve services through real-time feedback from customers on new products.

Introduce new products through customer survey.

Meet and comply with international standards.

Looking at growth through sales

Introduce and market new LPG installation and after-sales services.

Increase LPGas supply efficiency.

3.0

OPERATIONS PLAN
3.1

The LPGas Filling Plant (Source)

13

The LPGas that CALL TIME GAS SOLUTIONS Distributes and delivers door-to-door is
supplied by BOC Gases (U) Ltd. a company dealing exclusively in gas products based
on the 7th Street in Kampalas industrial area. BOC Gases (U) Ltd. operates a standard
filling plant at this location which is equipped with the basic minimum equipment
necessary to fill the 45 kg gas cylinders/canisters. The LPG container from the port is
trucked into the premises of the BOC Gases (U) Ltd. filling station and a pump and
multipurpose scalar are used to fill cylinders. The storage capacity can meet about 75
days of demand.
3.2

Organization and Human Resources

The company has a skeletal team of six dedicated staff. They include Materials
Engineer, Marketing and LPG installation Specialists.
The number of people employed by CALL TIME GAS SOLUTIONS is small owing to the
companys start-up low scale of operations.
Under this arrangement, it is therefore prudent to start off with a minimum number of
qualified personnel to match the corresponding start-up low volume of sales and its
associated low key revenues.
3.3

Marketing & Sales

CALL TIME GAS SOLUTIONS will put in place an aggressive and concerted marketing
campaign to promote the use LPG as an efficient alternative fuel that can potentially
replace charcoal and firewood even in relatively low-income homes.
The company will also institute an advertisement/marketing campaign to proactively
market the product to customers, including the use of opinion makers to mobilize the
brand.
Customers are essentially supplied LPG upon demand.
3.4

LPGas Distribution Model

The generic model that is used by CALL TIME GAS SOLUTIONS for urban specific
delivery is shown diagrammatically below:

Involvement by the
Gas Supplier

Bulk LP Gas Storage Facility

Cylinder filling facility

Independent distributor

14

Independent
distribution
Aspects include:

Delivery to customer

Harnessing of entrepreneurial energy and skills in the distribution operation.

Inclusion of local communities in the delivery operation, improving buy-in
Responsibility for delivery will reside locally.
Ploughing back of income and work opportunities into the communities.
The point where the independent distributor takes over will vary from situation to
situation
Management of the independent operators is key to success.
3.5

Payment Options

CALL TIME GAS SOLUTIONS requires its customers to pay for the gas that has been
consumed and to pay a standing charge for the pressure regulating equipment.
CALL TIME GAS SOLUTIONS usually operates a changeover billing system where
consumers will be billed when their LP Gas cylinders/ canisters are due for
changeover.
CALL TIME GAS SOLUTIONS provides an account statement detailing all bills and
payments received.
There are four ways of paying for customers to use when paying for LP Gas:

Budget Plan
Direct Debit
Bank Payment

Budget Plan Direct Debit

The Budget Plan Direct Debit scheme spreads the annual costs over the whole year.
CALL TIME GAS SOLUTIONS estimates a customers fuel bill for the year and the
total is divided to give twelve equal monthly payments. Once a year the amount of gas
actually consumed is calculated and a customers payments will be adjusted
accordingly. Any under or overpayment requires settlement at the end of the budget
plan year.
The method of payment is by direct debit with the agreed amount being debited on a
prescribed day of each month.
Variable Direct Debit

15

Once a customer has authorized his/her bank to make the payments, the customers
account is debited the outstanding amount on a prescribed day of the month as
previously notified on the customers account statement.
Bank Payments
On receiving a customers quarterly bill the customer pays the amount outstanding by
cheque or cash into the bank account of CALL TIME GAS SOLUTIONS

Change of Address
LP Gas consumers supplied by CALL TIME GAS SOLUTIONS are advised and urged
to provide details on their new locations and/or physical address to the Customer
Service Department whenever they are relocating to other premises.
Payment Problems
LP Gas consumers supplied by CALL TIME GAS SOLUTIONS are advised and/or
urged to contact our Customer Service Department as soon as possible if they have
any difficulty in paying their gas bills. The Customer Service Department then
provides detailed advice on payment methods best suited to each particular customer
and information on ways to cut down on his/her future fuel costs.

16

4.0

MANAGEMENT SET UP
4.1

Entrepreneur & Management

Mr. Robins Mutungire is a dedicated and highly-driven petroleum products

entrepreneur that has cut his teeth, grown his skills, cultivated his market network
contacts, and developed his technical competence in the dynamic but highly
competitive field of petroleum products trading for well over the last 10 years. The time
that Robins spent working with Shell (U) Ltd. petrol filling stations and supplying its
LP Gas products (for the last three years) in and around Kampala has sharpened his
understanding of the nitty-gritty and intricacies of the petroleum products market in
Uganda, and also accentuated his interest in developing trade in value-added products
such as LP Gas.
4.2

Qualifications of Management Team to Build Business

Robins has now managed to identify and recruit a small team of highly dedicated
professionals who include a Materials Engineer, Marketing and LPG Installation
Specialists with the relevant training and professional back-up experience to deliver a
hands-on service input necessary for the companys successive development and
business growth.
4.3

Time Commitment

Being the Chief Executive Officer of CALL TIME GAS SOLUTIONS and the brain
behind its innovation, Robins is ready to invest all it takes to see the company through
its first phases of growth and development with a view of expanding the scale and

17

scope of its operations, services, and geographical outreach throughout Uganda in LP

Gas distribution and delivery.

5.0

COMMERCIAL STRATEGIES
5.1

Existing Commercial Structure

At present, CALL TIME GAS SOLUTIONS primarily caters to the Kampala and
Entebbe hotel and restaurant LPG niche market. The company does not have a real
commercial organizational setup. LPG deliveries are made upon customers request
made through the companys telephone. In other words, the company has a small
number of customers and the product is delivered directly to their establishments or
houses upon request. Deliveries are done with a small truck with a total capacity of
50-60.
It is thus a reactive sales system that relies on clients requests only. There is thus an
essential need to periodically monitor and survey the market to find new customers
and develop a strategy to develop the market. In designing the strategy its necessary
to take into consideration the fact that LPG is almost unknown as a source of energy
and the majority of households are afraid of using LPG, as borne out by the customer

18

surveys. This reluctance is due mainly to a total lack of knowledge of the benefits of
LPG that makes it one of the most widely used energy source all over the world.
5.2

Requirements of a Commercial Strategy

To overcome the present situation where CALL TIME GAS SOLUTIONS is almost an
unknown entity distributing a product that customers have little knowledge of, the
company has to define and implement an aggressive commercial strategy that meets
the short-term and long-term objectives and translates to achieved sales volume,
market share and profit.
The commercial strategy has to be based on the following:

Clear definition of its geographic operational area of operations.

Changing its approach from a reactive attitude to a proactive marketing
approach.
Adopting the approach of a company willing to grow through the continuous
acquisition of new customers and their retention through regular offering of
high quality product, services and technical/commercial assistance.

To make the above possible, CALL TIME GAS SOLUTIONS will have to take the
following actions:

Choose, in every market of its operational area, the right balance between a
direct and effective sales structure that will greatly assist in the companys
development.

Hire a team of qualified professionals to understand and evaluate the present

situation and accordingly develop the market for LPG through multi-pronged
strategies including, education and awareness campaigns, introduction of new
LPG appliances for application in commercial and industrial establishments,
and other promotional actions that promote the use of LPG.

Create a brand image for BOC Gases (U) Ltd. (its principal LPGas supplier),
that will become its visual identification, present in all of its installations,
cylinders, vehicles, employees, uniforms and dealers as well.
5.3
Proposed Commercial Structure (a Joint Effort between BOC Gases
Ltd. and the distributor/retailer company)
5.3.1 Key Elements to a Commercial Strategy

In the smaller towns of Uganda (i.e. outside of Kampala and Entebbe), it is extremely
important that the market development policy be focused on increasing direct sales at
the depots retail store. A downstream distributor/dealer company like CALL TIME
GAS SOLUTIONS could adopt a policy that charges extra charge for cylinders delivered

19

to the customers premises. The suggested extra charge could be about 10% of the
final price for a 45 kg cylinder.
The main LPGas supplier company BOC Gases (U) Ltd. could for instance do well to
develop and adopt a simple approach or methodology to calculate the return on
investment and monthly gross profit. This should be shared with all the dealers so
that they can monitor and evaluate their success. This will also help management to
establish the minimum sales volume required for operations to breakeven within a
specified time period take decision on continuing operations at specific locations.
For its retailers/dealers the LPG supplier company (BOC Gases (U) Ltd.) should
examine the possibility of financing the purchase of a distribution fleet (small trucks
and motorbikes). This will not only serve as an incentive to the dealer but will also
ensure that obsolete and dangerous means of transport that compromise safety and
negatively portray the company are not used by dealers. The repayment of such loans
could through the retention of a percentage of the retailers gross margin after a
defined grace period that will allow the retailer to break even on operational costs. The
LPG supplier company should also develop incentives for dealers based on the
achievement of realistic sales targets.
According to the results of the market research, the average consumption of a family is
in the range of 5 Kg/month and therefore all domestic customers should be supplied
with 5.5 Kg cylinders, and industrial and large commercial customers with 45 Kg
cylinders. The delivery of the first cylinder to the customer should be based on a
payment of a deposit. In areas where the LPGas supplier company operates through
retailers, a percentage of the guarantee deposit could be given to the retailer as a
commission ideally this commission would be paid in LPG and not in cash.
5.3.2 Qualified Technical and Commercial Staf
The LPGas supplier company (BOC Gases (U) Ltd.) and the LPGas distributor/dealer
company (CALL TIME GAS SOLUTIONS) should hire a team of qualified professionals
to understand and evaluate the present situation and accordingly develop the market
for LPG through multi-pronged strategies including, education and awareness
campaigns, introduction of new LPG appliances for application in commercial and
industrial establishments, and other promotional actions that promote the use of LPG.
To promote sales, it will be important to remunerate the sales professionals based on
performance; a partly fixed base salary (less than 50% of the total), with the remaining
based on achieving defined targets.
Since there are no trained LPG professionals in the region, it will be necessary to hire
qualified professionals and train them in all aspects of LPG distribution. Since such
specialized training is not locally available, it might be necessary to arrange training in
South Africa which has one of the largest LPGas consumption markets on the African
continent. The exposure to a market with such large demand would be of enormous
benefit to personnel and would help them see the larger picture.

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Obviously, it will not be necessary to hire and train all the professionals at the same
time. A gradual process of admission and training can be done in phases to coincide
with the companys growth in other areas of the domestic market.
5.3.3 The Company Image
To promote the companies image and to make it a recognized brand name in the local
market, it is important that all cylinders, depots and vehicles bearing the same visual
brand image. The same LPG company brand image (BOC Gases (U) Ltd.) should also
be used by the dealers and retailers. For the retailers installations and distribution
fleet, the company may decide to share the cost of branding.
5.3.4 Promotional Programs
Before beginning operations in a new town, LPG main supplier and distributor/dealer
companies should plan to implement a series of promotional activities that effectively
communicate the brand message and the benefits of LPG. The idea is to promote LPG
to the point that it is seen as the only viable alternative, and create a demand. This is
essential to ensure the successful launch of the product in a new market and to also
ensure that sales targets are met as planned. Some of the suggested promotional
programs are listed below.

Organize public meetings at the companys or dealers/retailers depots to

educate customers about the benefits of LPG, and the proper use and care of
appliances.

Provide local community leaders and opinion makers with free LPG appliances
to promote and disseminate the brand image and communicate the benefits of
LPG. This could include provision of LPG appliances to food vendors who are
very visible in the market place and be used to communicate the benefits of LPG
as a clean-burning and efficient cooking fuel.

Promote a sweepstake/lottery to distribute, free of charge, a few one and two

burner stoves (value ranging from US$ 9.00 to 20.00 per unit).

Distribute to event participants gifts like T-Shirts and caps bearing the
companys logo.
5.3.5 LPG Appliance Sales

To increase LPG sales it is essential to disseminate and promote the use of LPG
appliances in the marketplace. Considering the per capita GNP Uganda as a whole, the
level of LPG appliances sales will remain very low in the absence of practical strategies
that promote their use, especially the sales of one and two burners gas stoves.

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The lessons learnt from promoting sale of LPG appliances in similar markets in Brazil
are pertinent to Uganda. Some 35-40 years ago, when the LPG companies in Brazil
wanted to penetrate the remote interior markets, they decided to finance the cost of
purchase of a stove along with a cylinder. To grow the customer base, companies were
financing stoves and cylinders to be paid back within a period of 12-24 months. The
resultant growth in the LPG market justified these efforts even though there were
some defaulted payments.
LPG companies operating in Uganda would do well to consider adopting a similar
scheme to promote the sale of LPG appliances and cylinders to customers who are very
sensitive to initial investments and costs. The installment payments should cover the
cost of the gas stoves, the cylinders, the cylinder deposit, and the cost of expected
defaults.
If such a scheme to finance stoves and cylinders is to be successfully implemented,
companies should be prepared to meet the challenge of supplying an enormous
number of stoves and cylinders. For instance, to meet a sales target of increasing
monthly sales of LPG by 4 to 5 tons, the company and its distributors will need to sell
some 700-900 stoves per month. The technical and commercial staff of the company
and distributors would thus need to be trained to meet this challenge. The utilization
of micro credit facilities through local banks and philanthropic institutions should be
explored to finance such a scheme and minimize the impact on the companys cash
flow.

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6.0

SOCIO-ECONOMIC BENEFITS OF USING LP GAS

1.

LPG burns cleanly and efficiently, without producing smoke or particulate

residual matter hence, lesser indoor air pollution.

2.

Relatively low pollutant emissions.

3.

Low Green House Gas (GHGs) emissions.

4.

Helps fight deforestation by substituting traditional fuels

5.

Generation of employment for more people and creation of micro-employment

opportunities through outlet suppliers.

6.

It contributes to improving community life, health and sanitation by generating

income at the community level.

7.

Encourages girl child education, as LPG reduces the amount of time women
and to some extend girls go out looking for energy (firewood).

8.

Families are able to prepare warm food safely and quickly.

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7.0

FINANCIALS

The CALL TIME GAS SOLUTIONS will kick-start its LP Gas distribution and door-todoor delivery business with monthly deliveries of twenty (20) 45-kg LP Gas cylinders
per month for the first two (2) months of the enterprise. The supply and delivery
schedule of the LP Gas is then expected to increase in simple increments of ten (10)
45-kg LP Gas cylinders after every two months as the business picks up and
consolidates its position in the market.
The cash flows statements (as depicted in following Excel spreadsheet pages) are
therefore indicative of the scale of operations, running expenses and profitability of the
business for a two-year (2-year) analysis period and are meant to provide a general
overview on how the enterprise will grow and expand in direct response to prevailing
market dynamics and other operating variables.

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