Engen launches franchise in Africa
PETROLEUM company Engen said yesterday it was rolling out its lubricating oil franchise, known as The Oil Centre, into the rest of Africa as the company wants to become one of the biggest suppliers of lubricants in sub-Saharan Africa by 2016.
An Oil Centre was a distributor of Engen and Mobil branded lubricants, Engen spokeswoman Tania Landsberg said yesterday.
With just more than four years left in its 10-year growth plan, Engen is gunning for more market share in the rest of Africa. In terms of its EPIC 2016 vision, Engen wants to be one of the biggest energy companies in sub-Saharan Africa by 2016.
Andre de Wet, acting GM of Engen’s international business division, said yesterday: "In terms of Engen’s strategic plan for growth, we are aiming for top-three lubricant supplier status in the region by 2016. Partnering is the only way we can achieve the growth needed to support this aggressive target."
Engen said it had launched the Oil Centre model in Zambia and was planning to roll out eight other centres in selected African countries. In addition to distribution, an Oil Centre franchisee is also responsible for warehousing, managing and building a customer base, and ensuring supply.
Apart from The Oil Centre, Engen said it would also introduce a nonbranded distribution partnership model, of which it envisaged rolling out nine this year throughout the rest of sub-Saharan Africa.
Mr de Wet said "in-country realities" would determine which model would be followed as the preferred channel to market.
"Both models allow aggressive growth without significant capital investment. To manage growth, Engen must control its own fate, while leaving room for local business partner success."
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