OPPORTUNITIES

* Impending deregulation of the downstream Petroleum sector should result in improved margins

* Menj Oil has a Market leading infrastructure (in terms of Jetty size and storage capacity)

* Highly nimble organizational structure

* Menj Oil has Alliances with leading international Petroleum Products suppliers

THREATS

*Competition from established players (i.e. the Major Oil Marketers) is formidable

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* The petroleum sector is exposed to significant political/ regulatory risks (given the recent wave of policy changes)

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* Potential difficulty in accessing new loans or refinancing existing ones

Business Model

Focus on 3 key drivers of shareholder value:

• Maximize gross profit margin

– Order in large quantities to obtain bulk order discounts and amortize delivery charges over more units
– Skew product mix, where possible, toward higher margin products & services
– Exploit reference pricing potential.

• Minimize working capital requirements (ideally negative w.c.)

– Minimize days' inventory held
– Maximize trade credit from suppliers
– Obtain overdraft facility to fund 50% of inventory

• Maximize revenue per location

– Maximize number of builder/trade accounts per location
– Maximize wallet-share of each buyers' spending