Kadoil Board of Directors Member
How do you assess 2021 in respect of KadoGAZ?
2021 was a compelling process for the whole world. Due to the pandemics, close-downs, instability regarding supply and demand relation and rapid rise in prices, we passed through a process where we had to sand update our strategies, more closely following-up any developments. I am anticipating that year 2022 shall be more normalized compared to the previous years. Although the recent developments worldwide have upset certain balances, I am expecting 2022 to become a better year specific to total LPG sales.
Recent energy crisis encountered around the world has likewise been reflected adversely to the energy prices as well. In your opinion, how is Turkey passing through this period in respect of pricing? Is there a policy implemented to this end by KadoGAZ?
First of all, LPG consumption as well as production is increasing worldwide. According to the reports issued by World LPG Association (WLPGA); in 2019 LPG production worldwide increased at the rate of 3.6 percent. At this point, new natural gas discoveries in America have a particular contribution to that effect. United States is in the position of world’s largest LPG manufacturer, followed by China, Saudi Arabia, Russia and Canada. Recently, global LPG consumption has increased by 85 million tons. Converted to percentage, we are faced with an increase at the rate of 40%. This is very serious figure. Following our inquiries therefor, we realized that this increase shall be ongoing in the coming period as well. At present, every sector is influenced by the trend of how to create a better world, adopted by environmentalist policies. All sectors are involved with a transformation where they change their manner of doing business. As an environmental-friendly fuel, LPG is likewise assuming the share on its part from such a transformation. Taking this factor into consideration as well, it shall not be incorrect to say that LPG shall be growing ever faster compared to the past. Of course the situation in Turkey is somewhat different. In terms of consumption, we are at the second position in Europe, whereas 10th worldwide. There are nearly 4.8 million vehicles running on autogas, which corresponds to 38 percent of the total vehicle stock.
LPG pricing policy is based on two essential elements. First of these is the import price of the product, while the other is the rate of exchange of the United States Dollar. In this process, increase in the exchange rate of the Dollar caused very substantial impacts. Both representatives of the sector as well as our government applied certain reductions that would to an extent be supporting the consumer. As a company, we shall be continuing to provide support to those who prefer us. In order to sustain our aforesaid policy in arduous days, we are getting prepared to subscribe to various different projects.
As Kadogaz, how did you plan your investments for the near future? Are there any investments you shall be venturing soon?
Kadogaz is operating under organization of Kadooğlu Holding, one of Turkey’s most deep-rooted holdings. It has entered this sector by making use of the know-how and experience of Kadoil, one of the leading distribution companies of the fuel sector. Ever since it was incorporated, it has increased its market share from one day to the next. This is indeed related to the power and wide dealer network of Kadoil. Concerning our service standards and quality. Despite all such adverse circumstances, we increased our market share in the past year. This is a great success. Such success is backed up by many years of business experience and solidarity exhibited by a professional team. At more than a half of Kadoil stations spread around Turkey in general, we are providing service by our LPG brand. Our target is to take this to all of our stations. We aim to be and become a brand at your closest access even when you travel to the most remote corner of Turkey.
Would you please tell us about the relations of Kadogaz with its dealers and strategies towards ensuring dealer satisfaction?
Kadogaz dealers surely have the biggest share in Kadogaz arriving at its present status as well as and including such valuable Kadogaz dealers choosing the work with us for the first time. As a matter of fact, in the philosophy assumed by Kadooğlu, dealers are our most important business partners. Our business approach is based on win-win model. We come together with our dealers all the time, our dealer are at ease of contacting 7/24 any and all senior management team. Our relations with the dealers is very long-termed and following the initiation stage, it turns into a family relation. That is what makes us different. At the moment, there are dealers in business as second, third generations, acquainted with our childhood. Even in days of curfew, our dealers ongoing to provide their services under special authorization, took that service to such an extent that they brought requirements of our customers staying at home, such as bread, medications and the like. This is really a great pride on our part. Recently, because of the pandemics our means of travel are very limited, but despite this we realized a very rapid transformation jointly with our dealers. Amongst them, there were Zoom users for the first time. At this level, we had very enjoyable meetings. Previously, our dealers used to come and visit us at the headquarters, and there were even unannounced visitors so as to surprise us. Nowadays, they are making video-calls throughout the day. They have adapted to the new World order from their perspective.
If not used in accordance with technical regulations and standards, LPG could be dangerous. Do you have a strategy followed in order to ensure and maintain security?
This in fact, is a serious matter monitored very closely not only by representatives of the sector, but by the government as well. Our Kadogaz tankers and dealers are continuously controlled by the authorized services, while periodic maintenance and inspection are very carefully traced and regulated.