N Balasubramanian talks to A. Vinodhraj, Founder and CEO, GoFuel and Adhithya Mahesh, Partner, N S Rama Rao Body Works to understand what makes them a preferred bowser fabricator for GoFuel – a start-up supplier of high-speed diesel to customers at their doorstep making it the first non-government body to offer such a service
A start-up is akin to a new learner, who needs a teacher to impart basics of the game, just so that the learner can excel at the task ahead.
GoFuel is today the first-ever non-government fuel distributor in the country – to fulfill the last mile gap in taking fuel to the doorstep of the customers. Since, service is only as strong as its execution, GoFuel has roped in one of the best body builders, N S Rama Rao Body Works (NSR) to build bowsers for it.
NSR, a Chennai-based fabricator, has 6 decades of experience in building bodies for bowsers, tankers – both top and bottom loading ones, and containers. It is today synonymous with skilled labour, high quality jobs that they deliver owing to the equally high-quality material that they use besides employing sophisticated manufacturing methods. They are known for being the pioneers in incorporating high-tech solutions in body building that discourage pilferage and improve fuel efficiency.
A. Vinodhraj, Founder & CEO, GoFuel explains why his company chose NSR for building their bowsers: “NSR is an inspiration to us. They have induced confidence in us, and we are thoroughly impressed by their customer service. That for us is extremely important, because as an entrepreneur, we needed the right partner with us and we found it in NSR.”
GoFuel is in possession of supply licenses from 3 major oil marketing companies. In 2019, when the government opened up initiatives for petrol pump owners, GoFuel found that its journey has begun.
Vinodhraj happily announces: “And today, we are ready with Rs. 100 cr. investment and Letter of Intent (LOI) for 1000 vehicles along with confirmation letters. We are ready with the product for the market.”
Adhithya Mahesh, Partner, NSR is confident: “There is tremendous potential in this and there are multiple areas where bowsers will become the most popular way to dispensing fuel.”
NSR – Preferred Partners
It is not only the sturdiness and reliable body structures that NSR builds for its customers, but they also take great pains in ensuring that their vehicles are sleek to look at too and their in-house printing and painting is qualitative in nature. Further, reassurance is reiterated for GoFuel in the form of resolving their every single query by Team NSR.
Adhithya understands the intricacies involved in helping develop the new segment and the challenges involved as the fabricator: “It is a new industry. Packages have been offered by fabricators around the country, spending hours talking to ROs, and other smaller start-ups about sticking to a particular flow meter setup, but we realized that they were more invested in the initial investment and the following cost. When we spoke to Vinodhraj of GoFuel, and explained to him the package and the specification that they need to opt for, he promptly agreed. He understood how installing flow meters will work in the long term instead of dispensing units which may start to malfunction sooner than expected.”
Vinodhraj agrees: “We went into detailing in the last many months and I would say the interaction was pure learning for us and we have built a relationship. Though cost is definitely an important aspect, I believe that we should depend on the expert and the proof of concept. Since NSR does not manufacture meters, I know that their suggestion in favor of flow meter installation is pure in its intent. With the proof of concept, it will be easier for us to convince our investors.”
Adhithya is certain and so is the team at NSR that this project with GoFuel will become the benchmark in the industry, especially when it comes to flow meters.
He elaborates: “What people need to realize is that this is not only about B2B space, but that we should be thinking about the end customer too. The moment the flow meters start malfunctioning, it will result in people mistrusting them. If dispensing units become the norm, the bowser meters would be treated like the 3-wheeler fare meters which, today, are synonymous with distrust among people.”
NSR believes in ‘sticking with our specifications’. In his own words, ‘as a matter of fact, we let go of a few other orders because we were adamant about the specification aspect’. And there are absolutely no regrets.
A ‘Much-Needed’ Disruption
Though a nascent vertical today, Vinodhraj believes that there is room for 50,000 bowsers in the market once the segment is opened up for transport.
He shares: “I believe diesel, as a Class B fuel, is safe and with the right SOPs, and the right approvals given by the authorities, and the petroleum and commerce ministries through Petroleum and Explosives Safety Organization (PESO), entering the transport segment is possible creating a B2C model. I strongly recommend that the government should take steps to open this service up for transport and domestic customers.”
Adhithya adds: “It is common to witness most transactions being carried out using oil barrels and jerrycans, which is highly unsafe. Till now, people have been unwilling to invest to help change the landscape. But finally, we are at a point where change is possible, since this is a highly inflammable commodity we are dealing with.”
On the other hand, the oil companies are proving tremendously helpful too in every aspect, as per GoFuel.
Vinodhraj says: “They answered our queries which took care of almost 70% of our challenges. The oil companies are happy and feel that the government is doing the right thing, since this is now an active form of selling. And in turn, GoFuel is into active selling where we take the fuel to the people.”
This much needed disruption is being welcomed by customers. A case in point is a builder customer of GoFuel who is utterly relieved that his fuel needs and challenges are being taken care of on a day-to-day basis.
Vinodhraj shares: “This builder customer of ours needs about Rs. 8 lakh worth of diesel daily. He has been having trouble getting the fuel required for his genset because more often than not, he gets adulterated fuel which means water is being filled and his genset gets damaged. At other times, it gets pilfered or there is spillage in transit. He was grateful that we have solved all his pain points with regards to fetching fuel in one go. And most importantly, he needed PESO approved space to store his jerrycans, because when their officials come in for auditing, him having so many jerrycans minus the certification would get him in trouble.”
And GoFuel is only happy to help.
Taking Fuel Places
GoFuel has plans to touch 1000 vehicles in the next couple of years and reach out pan India in terms of their services.
Vinodhraj feels: “Ours is a long-term partnership. We began in Chennai and now are slowly and steadily expanding to other cities. We are receiving tremendous support from major Indian OEMs. Another major OEM has been extremely vocal on quality and other variations as per their market strategy.”
GoFuel is 13 people strong as on today that includes their technical team. Vinodhraj is confident that the industry will grow what with mining and quarrying, and RMC plants increasing their activity, which translates into increased diesel needs. He feels that the government should create SOPs for filling parked heavy vehicles – as approved by PESO – using bowsers which actually will be a big game changer.
GoFuel is bullish about the future and is relentlessly working on its goal – to become the last mile supplier of oil and energy for both B2B and B2C customers – with NSR as its partners.
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“NSR is an inspiration to us. They have induced confidence in us, and we are thoroughly impressed by their customer service. That for us is extremely important, because as an entrepreneur, we needed the right partner with us and we found it in NSR.
– A. Vinodhraj, Founder & CEO, GoFuel
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“It is a new industry. Packages have been offered by fabricators around the country, spending hours talking to ROs, and other smaller start-ups about sticking to a particular flow meter setup, but we realized that they were more invested in the initial investment and the following cost. When we spoke to Vinodhraj of GoFuel, and explained to him the package and the specification that they need to opt for, he promptly agreed. He understood how installing flow meters will work in the long term instead of dispensing units which may start to malfunction sooner than expected.
– Adhithya Mahesh, Partner, N S Rama Rao Body Works