Kazahkstan
A giant at the heart of the Central Asia

Shuhrat A. Danbai


Interview with:
Shuhrat A. Danbai, General Director.




HELIOS CENTRAL OFFICE
Kazakhstan Republic, Almaty
69, Karasay Batyr, str.
Tel.: +7 3272 583740/1
Tel.: +7 3272 585994/5
Fax: +7 3272 585562

CLIENTS DEPARTMENT
52a, Microrayon Orbita 3
ASS Helios nº10
Tel.: +7 3272 582 304/5/6
Fax: +7 3272 590 580
Email: dream@helios.kz

 
INTRODUCTION

In the Ancient Greece Helios was the name of the resplendent God of the Sun. Helios is also the name of the company founded on September 27, 1999 in Kazakhstan. Helios specializes in wholesaling oil products within Kazakhstan, and partially Kyrgyzstan as well as retailing. In three years the company has solidified its position as a steady supplier of quality competitive oil products what resulted in an increased the number of Helios clients. Today Helios operates the network of 80 service stations in Kazakhstan (Astana, Karaganda, Pavlodar, Shymkent, Ust'-Kamenogorsk, Taraz, Kyzylorda, Semipalatinsk, etc.) 40 of which are located in Almaty.
The company is an official representative of the Pavlodar Refinery. Today the Pavlodar refinery is the most modern refinery in Kazakhstan, annual capacity of which is 7 million tons. The Helios is the first and the sole home-grown energy company to adhere to Western standards of the vertically integrated structure and controls upstream and downstream processes - from the oil well to the end user. The company carries out careful lab tests based on state GOST oil products quality requirements being observed as the product makes its way from the refinery to the end user. The priorities of the company in doing business are quality gasoline, reasonable prices and high level services.

Helios monitors the product market; studies all the factors determining demand and supply on the market; planning and developing the network of it's own service stations.

Since its foundation the company has designed a strategy aimed at expanding its own network of service stations focussing on construction of Helios brand petrol stations. For that reason a capital construction department was established to co-ordinate fully the issues of construction as well as reconstruction and repair of petrol stations. Nowadays the Helios capital construction departments is responsible for considering and implementing the issues covering selection and acquisition of plots of land and sites for construction of service stations, selection of a developer, project co-ordination with public services, processing of legal documentation, tenders selecting a contractor to build service stations and many others.

Managerial expertise, a powerful car stock and efficient use of all the resources available have enabled the company to conclude long-term contracts for fuel product supplies to large Kazakhstani consumers. Among them are Aluminum of Kazakhstan, Open JSC Ispat Karmet, Corporation KazakhMys, Republican State Enterprise Kazakhstan Temir Zholy, Open JSC Air Kazakhstan, etc. Helios also supplies fuel products to state bodies and organizations, including the city's administration of internal affairs, the border service and the border school of the National Security Committee of the Republic of Kazakhstan, a mayor's office - in Almaty; automobile transportation enterprises and the Ministry of Internal Affairs of RK, republican state enterprise KazakhAutoDor, a military unit 90139 - in Astana; a mayor's office, a regional tax committee, an agricultural department and a regional administration for construction and highways, etc. - in Karaganda. Private companies, owners of other services stations, car fleets throughout Kazakhstan are also consumers of Helios oil products. At last, individuals who are the citizens of the cities where the company has its affiliates also have a chance to purchase Helios gasoline.

Helios employs the latest technology and environmental safety equipment and uses the most modern stock of Mercedes Benz-Actros 3840 trucks that meet the world's standards. Trucks are outfitted with the vapor utilization system that prevents hazardous emissions polluting the air. They are also equipped with multi-sectional tanks, which consist of two to seven isolated pressurized compartments that are used to deliver six (6) types of fuel products simultaneously.

One of the strategic directions Helios pursues is to create an environment-minded company.

Helios is the authorized dealer of well-known Swedish Dresser Wayne AB, the world's leading manufacturer of dispensers. Why "Dresser Wayne" dispensers? The dispensers installed at Helios service stations are used to serve clients to the world's standards. Electronic gauges so called "meters" that are installed on the dispensers are capable of keeping stock of fuel sales and cash flow with precision of 0.00 gram what confirms the principle of transparency of financial transactions that Helios may carry out. Secondly, dispensers are outfitted with thing clearing filters capable of providing practically clear fuel without micro-particles ending up in the consumer's fuel tank. Thirdly, dispensers are fully operated via cash machines ISM-3000 what speaks for precision of technical operations when filling a fuel tank. Dispensers can withstand the vagaries of adverse continental climate of Kazakhstan with temperature varying from -40 to +60. Underground tanks for fuel storage at Helios service stations provide for three safety layers, which consist of two walls and concrete reservoirs. Underground tanks are equipped with gas-leveling casing and necessary attached implements. Since April 2000, the personnel have been trained for Helios service stations personnel at special qualification upgrade courses on the basis of a Helios Training Engineering Center in cooperation with Open JSC Kaznefteproduct and a representative of Dresser Wayne in Kazakhstan.



One of the challenging marketing policies Helios pursues was to introduce a smart card system being used for better convenience, in particular the card service system. The smart card service system keeps track of and controls cash flow. Today almost 3,000 clients of the company both corporate and private persons are being served via the smart card - a charge Helios plastic card as well as coupons. A flexible discounts system and a case-by-case approach towards every client have enabled the company to expand its clientele. The smart card allows the client to pay for gasoline and/or goods/services (like car wash, maintenance, etc.) at Helios service stations. The client may also receive discounts at malls, restaurants, insurance companies, nightclubs, beauty salons, tourist agencies, etc. The Helios smart card system can be served in many cities of Kazakhstan, as well as at several service stations in Kyrgyzstan.

In order to expand the range of card-based services a department was established to tackle the company's transit clients. K????? SMAP, a Kazakhstani automobile transport society of the union of international automobile shippers embraces nearly 145 organizations and individuals that are entitled to carry out freight traffic in Kazakhstan and beyond. Helios has concluded contracts with members of this organization to provide diesel fuel to their motor vehicles, mainly trucks.
In addition to the Helios affiliates, transit clients can refuel their tanks by using a Helios smart card in Aktubinsk, Kustanai, Petropavlovsk, Ucharal. Outside of the republic, transit clients have an opportunity to fill up their tanks by using ARIS smart card in Russia, Moldova, Belarus, the Baltic nations, Slovenia, Austria, Poland, Hungary, Romania, the Czech Republic, Slovakia and Germany. The reference: Helios has concluded a contract with ARIS Ltd. for mutual cooperation and supply of diesel fuel to clients of Helios. Which means that the clients of Helios can produce an ARIS smart card and be served freely in the above-mentioned countries. As of September 1, 2002 about 25 Kazakhstani companies were served through the network of Helios service stations in Kazakhstan, and about 20 Kazakhstani companies beyond its borders. A transit service system introduced via smart cards provides maximal benefits to our clients: a credit service, a printout about purchase of diesel fuel, a weekly monitoring of prices at the network of ARIS service stations and, at last, only two cards and a daily ration a driver can carry instead of two sacks of cash as it was a case in the past. In the near future the Helios transit department is planning to provide diesel refueling services to transit clients that use the network of ARIS service stations in Kazakhstan, namely at Helios service stations in Astana, Almaty, Taraz, Shymkent and Pavlodar.

Another constituent of services the company provides is mini-marts (small self-servicing stores that offer the essential range of products to drivers) at Helios service stations. What is a mini-mart like and what makes it differ from normal stores? Like service stations, mini-marts work around the clock. Clients can pick out from a wide range of the piece goods (cigarettes, drinks, canned food, confectionery) up to industrial group of products (lubricants, filters, automobile care products). In mini-marts one can buy anything necessary for a long trip as well as for home. Products of renowned trade marks COCA-COLA, PEPSI, VITTEL, PERRIER, MARLBORO, SOVEREIGN, SOBRANIE, KENT, HEINEKEN, AMSTEL, NESTLE, NESCAFE, CADBEURY, FAZER, GILLETTE, SCHICK, ARIEL, ESSO, SHELL, BP, CHEVRON, MOBIL and others are always on shelves in mini-marts. Mini-marts focus basically on clients what is essential for any other activities that Helios carries out. Getting lubricants in a mini-mart, you can replace it free-of-charge at oil replacement outlets (ORO) that can be found practically at any Helios service station. Helios mini-marts are known for excellent service, ability to anticipate and fulfill the wishes of buyers, and good will of the personnel. The plans are to expand services and range of products in mini-marts that have the future in the Kazakhstani market. As of September 1, 2002 the company operated 39 mini-marts 27 of which are in Almaty, the southern capital of the republic. Until the end of 2002 Almaty, Ust-Kamenogorsk and Kyzylorda are planned to see the opening of another 10 mini-marts.

The unified corporate style was developed by the design & advertisement section of the company which enabled the brand Helios to become the most recognized and popular among the car drivers of Kazakhstan. The brand uniforms for workers of Helios service stations were also developed and produced in compliance with state standard of the Republic Kazakhstan.

As of September 1, 2002 the company employees 1,350 people of which 760 people are the service station personnel.



A training and engineering center (TEC), a structural division of Helios was set up to consider and make decisions about training and re-training of highly skilled employees of the company. The purpose of TEC is to provide quality training of the necessary number of the personnel of the first and middle levels: cash operators, fueling operators, managers of mini-marts and managers of service stations. Training at TEC is provided by highly skilled employees that boast many years of hands-on experience in the field of oil products' supply. The training system of Helios is rather dynamical and provides for regular advanced training courses both for top executives and employees of the company's affiliates. Upon completion of courses attendees are awarded certificates authorized by the Emergencies Agency of the Republic Kazakhstan (EA RK). For example, at the beginning of 2002 a group of employees of Helios received certificates at EA RK that confirm that they passed exams on labor safety at their workplace. In spring of 2002 another group of employees was trained by representatives of Dresser Wayne at TEC that awarded them with brand diplomas. In order to proceed with educational process an educational and presentation video-commercial was produced to describe key parameters of the operation of a service station and its structure, labor safety at a service station. The commercial has been shown at TEC and all Helios service stations. Along with it, other educational films are expected to come out. They will cover the following themes: observance of fire safety at oil storage premises, operation of gas equipment at a gas station, techniques of sales of industrial group of products (motor oil and automobile care products) and others. Among other companies of this kind, Helios is a pioneer in creating the training and engineering center designed to provide continuous training and upgrade of professional levels of employees of the company.

The company also tackles public relations issues and provides support and sponsorship for social projects as well as sport events. The following organizations enjoy the patronage of Helios: The Regional Boarding School for the Legally Blind Children in Shymkent, a soccer team that participates in city-wide competitions, the Muaytai Federation and the kick-boxing Federation of the Republic of Kazakhstan. The company also participates in one-time campaigns aimed at providing material aids to non-profit organizations and individuals.

Since its early days the company has been an accurate taxpayer that observes financial transparency and operates according to Western-based standards covering organizational structure of business up to its technology capacities.

In 2001 Helios-branded service stations were recognized as the best stations in the Republic of Kazakhstan thus winning an honorary medal and certificate in the nomination "Service Station No. 1 in Kazakhstan, 2001" at the contest "THE CHOICE OF THE YEAR IN KAZAKHSTAN".

In a long-term period the company will pursue a developed strategy of further expansion and development of businesses under the Helios trademark by solving the following tasks:

· Creating the modern network of Service Stations throughout Kazakhstan;
· Developing fully integrated businesses engaged in delivering and retailing fuel and lubricants across all the regions of Kazakhstan;
· Offering high-quality products and high-class services to the clients;
· Outpacing the competitors and taking advantage of "the first move" in the regions that are not covered by the rivals and maintaining this principle.

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