The first company of the Koç Conglomerates in the energy industry
Koç Conglomerates began its activities in the energy sector with Aygaz in 1961. As the generic brand of the Turkish LPG market, Aygaz uninterruptedly sustained its pioneering position and continued its growth based on solid accomplishments. The first publicly-traded company to be active in the LPG sector, Aygaz is Turkey’s 10th largest industrial company according to the 2013 rankings of the Istanbul Chamber of Industry, also ranking 22nd in the Turkey Fortune 500 listings.
In its core business field, Aygaz distributes LPG as autogas, cylinder gas, and bulk gas, manufactures and sells LPG cylinders, tanks, valves and regulators, and also markets LPG-operated devices.
Proactive approach to customer needs
Closely watching its customers’ requirements, Aygaz proactively improves the quality of its services and products that successfully embody safety and reliability.
Aygaz uninterruptedly maintains its position as having the highest customer satisfaction score in the sector according to the results of an independent customer satisfaction survey. This survey has been conducted for many years and was repeated in 2014.
The objective of providing diversified energy solutions
An integrated LPG distribution company operating in a wide range of environments from cylinder production to marine transport operations, Aygaz has the most reputable brand in its sector. The company strives to maintain its leadership and improve its profitability while increasing its market share in all segments where it operates. Meanwhile, its strategic objective is to provide diversified energy solutions in both Turkey and potential markets through the alternative projects, primarily in LPG and natural gas.
Strong distribution and service network
The service quality of Aygaz, a pioneer in dealer as well as customer satisfaction, is ensured primarily by its broad distribution network. The company meets its customers’ requirements in a fast and reliable manner carrying its quality of services and products to all corners of Turkey by means of 2,196 cylinder gas dealers and 1,631 autogas stations in 81 provinces. Thanks to this strong and broad distribution network, Aygaz cylinders enter into more than 80 thousand houses/workplaces every day. Meanwhile, more than 1 million vehicles are driven daily with Aygaz Otogaz.
Industry leader since its inception
Aygaz has the most preferred brands of Turkey in cylinder and autogas. The only integrated LPG corporation in the domestic market, Aygaz manages all of the processes in its core business including procurement, storage, filling and distribution. The company also sells and produces LPG devices and in the maritime shipping of LPG.
Completing another successful year in terms of its operational and financial results, Aygaz maintains its clear-cut leadership in the LPG sector. According to EMRA data, as of the end of 2014, Aygaz dominates 28.6% of the LPG market, comprised of 80 enterprises. This ratio is 42.7% in the cylinder gas market and 24.2% in the autogas market. Last year, Aygaz attained historically the highest market shares with these figures both in cylinder gas and autogas markets.
In 2014, total domestic sales of cylinder gas, bulk gas and autogas of Aygaz were 1,067 thousand tons, reaching the highest level at 1.8 million tons together with export and transit sales. As of the end of 2014, Aygaz’s consolidated turnover was TL 7 billion, of which USD 232 million is from exports and transit sales.
Investments of TL 81 million
In 2014, Aygaz and its subsidiaries engaged in new investments amounting to TL 81 million for renovation of cylinder parks, construction of new containers, expansion of autogas distribution network and for enhancement of logistics.
Turkey’s largest LPG logistics network
Nearly 41% of Turkey’s LPG import is done by Aygaz, which procures its LPG needs through Tüpraş and imports. Aygaz delivers the LPG to the filling facilities through the pipelines, with its fleet of sea and land tankers. It manages one of the largest LPG logistics operations in Turkey. Aygaz also makes sales outside of Turkey thanks to the strength of its logistics infrastructure and its recognition in international markets.
Its abilities in planning and performing logistics and its efforts to achieve higher operational efficiency are the most important competitive advantages of Aygaz. Within the context of its logistics optimization efforts, Aygaz benefits from economies of scale to organize the number / capacities of its vehicles and its distribution network according to its sales volume.
Young and high-capacity vessel fleet
Conducting its marine transport operations with its own ships since 1967, Aygaz owns a fleet of four specially equipped and fully pressurized LPG ships. In October 2014, the company sold the Kandilli, the oldest and the lowest capacity vessel of its fleet.
Focusing on the renovation of its fleet, Aygaz purchased a new ship, the Beykoz, in the beginning of 2015. As a result, Aygaz increased its total transportation capacity from 26.000 m3 to 33.800 m3 and reduced the average fleet age from 16 to 11.5 years. This young and high-capacity fleet is managed by Anadoluhisarı Tankercilik A.Ş., an affiliate completely owned by Aygaz.
The holder of Quality (ISO 9001), Safety (ISM Code), Security (ISPS Code) and Environment (ISO 14001) Management system certifications, Anadoluhisarı Tankercilik A.Ş. is audited by globally respected petroleum suppliers. In 2014, the company completed the preparations for the Occupational Health and Safety Management Systems (OHSAS 18001:2007) certification and incorporated the criteria in its management systems. Further, it successfully completed the on-board inspections and those performed at the offices by ClassNK and received fleet certification in January 2015.
Ever increasing export volume of Gebze Facility
Aygaz produces cylinders, valves, small bulk gas tanks, pressure regulators and similar items under the same roof, at its facility located at the Gebze Organized Industrial Zone, on property that encompasses 52,000 m2 of open and 25,000 m2 of closed space. The facility operates with the most advanced technologies and has ISO 9001:2008 Quality Management Systems, ISO 14001 Environment Management Systems, OHSAS 18001 Occupational Health and Safety Managements Systems, and ISO 50001 Energy Management Systems certifications.
In 2014, despite the political unrest in neighboring regions, Aygaz exported to 18 countries in the Middle East, Africa and Europe from the Gebze Facility and achieved total foreign exchange revenues of USD 26 million. Aygaz, which sold its products to 10 new LPG distribution companies abroad in 2014, closely follows national tenders in the sector as well and increases its spot sales volume each year.
The largest LPG storage capacity in Turkey
Aygaz boasts five sea terminals, seven filling facilities and eleven distribution centers, as well as an additional facility where pressurized containers and accessories are produced. All of these facilities operate in conformance with international standards and use state-of-the-art technologies. Aygaz has the largest LPG storage capacity in Turkey, with a total of 176,000 m3.
Stored at Aygaz facilities, LPG is delivered into cylinders automatically and prepared for distribution after a series of safety tests. Each Aygaz cylinder is checked for “Valve Gasket Integrity”, “Overfilling and Gas Leakage”, and is then issued a “Cylinder Information Card” and sealed with a “Hologram Lid” to verify that it is fully filled and quality certified.
Besides the ISO 9001 Quality, ISO 14001 Environment and OHSAS 18001 Occupational Health and Safety, ISO 50001 Energy, ISO 10002 Customer Complaints Management Systems, Aygaz products also carry the CE and PI brand certificates that allow free movement of goods in the EU as well as TSE Customer Friendly Organization and Customer Friendly Brand certifications.
Aygaz maintains its competitive advantage in the cylinder gas market thanks to its broad and efficient dealership structure in Turkey, deep-rooted corporate culture as well as fast and high-quality service.
Aygaz obtained a 42.7% market share in 2014 with an annual growth rate of 0.1%. Based on December 2014 Energy Market Regulatory Authority (EMRA) data, domestic cylinder gas consumption dropped to 801 thousand tons, decreasing by 4.8% whereas cylinder gas sales by Aygaz reached 342 thousand tons.
Practices that make a difference
In the cylinder gas segment, Aygaz operates all over Turkey in approximately 2,200 points of sale under the brands of Aygaz, Mogaz and Lipetgaz.
Aygaz strengthens its competitive advantage in the market through its innovative practices that make a difference. Aygaz Ekspres System, which serves its customers with the ability to make quick orders while providing the company with the opportunity to analyze consumer trends, has been continuously updated with the newest technologies. Aygaz expands its dealer network using this system to include Mogaz and Lipetgaz dealers. Thanks to the infrastructure supported by Aygaz Ekspres System, Aygaz has the privilege of offering consumers all over Turkey advantages such as installment plans through credit card campaigns, additional points, as well as special campaigns to meet customer needs.
Raising awareness through Aygaz Summer Festival
By sending the Aygaz Training Truck to destinations throughout Turkey, Aygaz raised brand awareness for its products, increased dealer satisfaction and strengthened consumer satisfaction and loyalty.
Within the framework of mobile musical, which is a first in the sector, in 2014, Aygaz organized a series of activities. During these events, consumers were received information about safe and correct usage of cylinder gas, periodic changeover and correct usage of hoods and hoses used with cylinders.
The Aygaz Summer Festival reached more than 15,000 consumers at 20 different locations in Turkey. Participants also received information about Koç Group’s “No Barriers for My Country” project, which raises awareness about disabled citizens and seeks to improve their lives.
Training programs aiming to standardize the service quality of Aygaz all over the country and to instill Aygaz’s corporate culture, values and vision in dealer employees were also provided to Aygaz, Mogaz and Lipetgaz staff in the Training Truck.
One of the three largest autogas market in the world
The Turkish autogas market is the second largest European market and third largest in the world, following South Korea and Russia. Comprising 11% of the global autogas market, Turkey has the largest number of LPG vehicles in the world. Approximately 4 million vehicles, which constitute more than 42% of total number of vehicles in Turkey, use autogas. In other words, the Turkish market contains 16% of a total of 25 million vehicles worldwide running on LPG.
Last year, the decline in oil prices especially during the last quarter was directly reflected in LPG prices as well and positively impacted the growth of the autogas market. Autogas consumption in Turkey reached 2,838 thousand tons, with an increase of 4.1%. Experiencing a sustainable growth model, the Turkish autogas market provides inspiration for the other countries as well.
While the increasing awareness that autogas is an eco-friendly product, consumers’ perceptions of performance and safety demonstrate positive changes. Recently, as vehicle owners in higher segments gravitate toward autogas, its consumption and the number of consumers who prefer autogas increase gradually.
In 2014, Aygaz reached 688 thousand tons of sales volume obtaining a market share of 24.2%.
In Turkey, more than 4 million LPG vehicles refuel at more than 10,000 autogas stations. Aygaz focused on meeting consumer demand by initiating proactive marketing policies and investments to expand its distribution network in a fiercely competitive autogas market. Having the most extensive distribution network in Turkey with more than 1,600 licensed autogas stations, Aygaz increased the number of stations by 7% in 2014. The Company continued its cooperation with Opet while also growing in different distribution channels with the Mogaz and Lipetgaz brands.
Award winning campaigns
“Geleceğe Yol Al” (Travel to the Future), “Daha Fazla Yol” (The Much Longer Road), “Paragliding-Uçuran Performans” (Flying Performance) and “Sadakat Uygulamaları” (Loyalty Practices) projects of Aygaz Otogaz won eight prizes at different categories in Felis, Crystal Apple, Effie, Red and Direct Marketing, the most prestigious awards of the marketing and digital world.
The advertising campaign of “Paragliding-Flying Performance” underlines the superior performance of Aygaz Otogaz even under difficult driving conditions.
Within the framework of the special communications strategy set for Mogaz Otogaz, the advertising campaign “Git Git Bitmez” (Never Runs Out) was carried out together with a roadshow and sponsorship for the BJK Men Handball Team. Additionally, new arrangements were made at Mogaz Otogaz stations by using the Aygaz logo in order to benefit from the prestige of the Aygaz brand.
The brand positioning project, including Aygaz Otogaz’s “Kartopu” (Snowball) and “Oyuncak Araba” (Toy Car) campaigns, received the bronze award of the Effie Awards, which measure advertising strategies and the effectiveness of advertisements on sales.
In the Crystal Apple awards, the most prestigious award in Turkey, the publicity campaign of “Geleceğe Yol Al” (Travel to the Future) won a Crystal Apple in the category of Automotive Products of Press section. Simultaneously, the “Daha Fazla Yol” (The Much Longer Road) campaign won the Silver Apple in the same category. Under the Automotive Products of TV category the film Aygaz Otogaz, “Uçuran Performans” (Flying Performance) won a Bronze Apple. “Geleceğe Yol Al” (Travel to the Future) received a Bronze Apple in the category of Durable Goods of Open Air section.
Activities steering the industry
The autogas awareness raising campaign “Fuels of the Future: LPG”, which started in 2012 to reinforce the perception that autogas is a high-performance, safe, widely used, eco-friendly, and cost-efficient fuel for potential consumers continued in 2014. It was further enhanced by the “Travel to the Future” project. Within the framework of this project, which draws attention to climate change and the environmental benefits of LPG, a new web site, www.gelecegeyolal.com, was initiated. The project was launched by means of digital and conventional media and reached large masses; direct communication with consumers was established during 13 roadshows organized in 10 cities.
Aygaz further strengthened its cooperation with autogas conversion companies. It organized year-round attractive campaigns and events for existing and potential consumers via the Aygaz Conversion Club. This Club gathers conversion centers under a single roof in order to raise sector safety standards. The website of www.otogazla.com, opened in 2014, ensured a communications platform for consumers wanting to convert their vehicle to LPG as well as Aygaz Conversion Club members. Within the context of investment in the Conversion Club, 131 member conversion centers were visited and 320 staff received training.
Since the beginning, Aygaz has maintained its leadership in the bulk gas segment through its product and service quality. In 2014, Aygaz served nearly 5,000 bulk gas customers and its sales reached 37 thousand tons in this segment. Bulk gas makes up 3.5% of the total domestic LPG sales of Aygaz.
In 2011, Aygaz began distributing carboy water to optimize its distribution network and further increasing dealer satisfaction. Operating in three natural spring water filling facilities in Uludağ, Nazilli and Sapanca, Pürsu carries out water sales in 32 cities through 525 dealers.
The carboy water market consists of more than 300 companies where the market leader has 11% market share following acquisitions in recent years. Pürsu is among the first eight brands of the carboy water sector with 2.1% market share.
In 2014, Pürsu carboy sales increased by 22% and reached 6.6 million units annually.