Zip Military Cooking Fuel

Zip invented the domestic kerosene fire starter in 1936 and has grown over the last 76 years to become the leading ignition brand in Europe. Our constant innovation, quality management and superior product performance has enabled the Zip brand to become a trusted global partner to many leading retailers. The range primarily consists of solid and liquid fire starters, firelogs and charcoal.

 Zip’s manufacturing processes are approved to the highest international standards: ISO 9001; ISO 14001; OHSAS 18001.

Zip Military Cooking Fuel has significant advantages over other fuels :

Non toxic and safe if ingested

Suitable for use in extreme weather conditions
Easy to light
Suitable for indoor and outdoor use (providing adequate ventilation)
Lightweight; easy to carry
Clean to handle
Consistent quality
Not classified as hazardous – can be transported by air
Safe for wildlife
Long shelf life; no use by date
Made in EU

Industry Overview – cooking fuel

The cooking fuel market which comprises of Hexamine tablets, Alcohol Gel, Propane and mini-LPG cylinders remains extremely fragmented and highly regionalised. Distributors play a key role in the eco-system and dictate channel margins and credit terms. Most of the manufacturing companies (in this segment) are sole proprietorship firms (SMEs) employing less than 20 people. The Hotel & Catering Industry accounts for approx. 90%, of the industry volumes followed by shipping at 4%, with ‘others‘ accounting for the remaining 6%. Alcohol gel dominates the cooking fuel market and accounts for over 90% of the market volumes, predominantly driven by the institutional channel (Catering, Hotels, Clubs & schools) - due to its burn time and cost. A typical can of gel (225 gms) burns for over 60 minutes and costs less than £.30 making this ideal for large caterings/ outdoor events. Most SME who were either manufacturing or distributing Hexamine tablets have shifted to alcohol gel cans. Manufacturers of alcohol gel are located in select regions in the South and West of India and have a well established network of distributors and re-sellers.

India outdoor industry overview

Adventure tourism accounts for < 2% of the Tourism market - growing at 14% (Y-O-Y).

There are 1,256 registered ‘Hiking & Trekking’ operators in India - the top 10 operators (and associates) account for ~ 30% of the entire industry volumes.

More than 80% of all Hiking & Trekking is concentrated in North India – Himachal Pradesh, Ladakh and Uttrakhand.

US$ 600 mn was spent on outdoor equipment (rucksacks, sleeping bags, stoves, boots, water bottles, rafts, accessories and tents) in 2012.

Tour operators play a key role in ‘kitting’ trekkers – with either direct sales or through tie-ups with specialty stores, or small ‘mom & pop stores at various transit camps.

Industry Overview – cooking fuel

Hexamine tablets and Propane/ Butane cylinders are predominantly used by outdoor/ trekking agencies, mountaineering clubs/ societies and adventure seekers. Small retailers located along Trekking/ Hiking routes retail large quantities of Hexamine tablets for trekkers. Price of a packet (12 tablets) costs Rs. 180 – Rs. 400 (£ 1.80 - £ 4.00) At altitudes of 12,000 - 20,000 ft. and above tour operators/ trekkers prefer to use Hexamine tablets due to its limited impact to the environment and is easy to carry. Due to cost of transportation, erratic supply and quality, Propane & Butane cylinders and are the least preferred option.

Industry Overview - Defence & Security

The Indian armed forces use a range of cooking fuels to meet its field requirements (Hexamine tablets, Alcohol Gel, Propane and LPG) - no brand preference.

At forward posts (~ 6 km from IB), soldiers on ‘area domination’ duty prefer using Hexamine tablets as they are lightweight, easy to carry and use & leave no trace/ residue.

Altitudes of 18,000 ft. and above soldiers use a mix of LPG cylinders, propane cans and Hexamine tablets. LPG and propane cans are used for cooking/ re-heating food, while Hexamine is used to heat tea, light small fires or RTE meals.

Supplies to the armed forces are based on tenders (L1), with budgets typically taken from Army Commanders Funds (ACSFP).

No limit to the number of tenders in a year, but average value of tender is ~ £ 1,600 (based on 13 tenders for RTE meals including hexamine tablets.

Master General Ordinance (MGO) route is not being used by any cooking fuel manufacturer due to its lengthy gestation, but holds key to long term revenue generation.

Extremely low margins with standard credit terms of 60 - 90 days (and above).

Institutional – Wedding, Hotels & Clubs

The Channel has moved away from Hexamine tablets and now use Alcohol gel or LPG for most of their cooking/ heating needs.

Large users include – Hotels, Caterers, Wedding organisers, Schools and the Shipping industry
Market dominated by local manufacturers who have built their own distribution/ supply chain.

Most large manufacturers have their units in South and West of India, with an extensive distribution and re-distribution network.

Alcohol Gel is sold in specialised markets and localities only with strict standards for storage.
India has also become an export market for alcohol gel to the MEA and South Asia.

Extremely high volume business with low margins

A typical gel fuel casing served in hotels has 72 pieces of 200/225 gm units in 63 mm/15 gm Aluminum tins



Zip Military Cooking Fuel Report

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