Access to Energy for the Base of the - Ashoka

TOTAL
LPG Mobile Retail Dealers
Bangladesh
Executive Summary:
In 2005 TOTALGAZ in Bangladesh launched the Mobile Retail Dealers (MRDs) initiative. The objective of this program is
to make new LPG connections and refill cylinders available at the door of consumers who use kerosene or wood to meet
their cooking energy needs. This project engages MRDs from the BOP and empowers them as entrepreneurs. The MRDs
are targeting urban SMEs as a market entry segment, but the model can be extended to households in peri-urban or rural
areas. As of March 2009 there are 7 MRDs, 6 in Dhaka City and 1 in Jessore city. Their customer base is primarily small
restaurants and tea kiosks. The project is economically viable for MRDs at about 120-140 cylinders per month. This can
be scaled up in areas where there is shortage of natural gas grid connections.
� Date of creation: 2005
�� Products delivered:
� LPG connection including new cylinder, stove,
regulator, hose pipe and refill
�� Pricing:
� Connection: from TK4000 / $58.82
� Refills of 12kg at TK900 / $13.25
� Sales
� On average MRD connects 2-3 clients/week and
refills 130 cylinders/month
� Team: Initiative run by TOTALGAZ team in
Bangladesh. This comprises of General Manager
(Sales and Marketing), 5 Deputy Sales Manager and
sales officers
�� Partners involved:
� Currently 6 distributors have deployed MRDs.
TOTALGAZ has 146 distributors all over
Bangladesh
� Operational model:
� MRDs recruited by the distributors with the
support from TOTALGAZ
� They are equipped with a bicycle or tricycle for
the delivery of LPG
� Pick up 3-4 refill cylinders on credit from the
distributor, sell, then pay back the distributor
� They receive the same margin as a retailer margin
of TK25 / $0.37 per refill cyclinder
Project basic information
MRD on a Bicycle
Small Restaurant user of LPG
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