Commodities lie at the heart of everything we do at Lampros Energy. While our specific role varies from transaction to transaction, we are always committed to finding the most effective and efficient manner in which the commodity can move from the seller to the buyer in the supply chain.
Commodity Marketing
On a selective basis, we enter into marketing arrangement with verified and reliable suppliers of commodities who are looking at expanding their market reach, whether generally or in specific geographical territories. The marketing arrangement may take one of several forms, the most common being:
Agency arrangement where Lampros Energy approaches potential buyers of commodities as the authorized agent/mandate of the supplier in consideration of appropriate commercial compensation.
Joint Venture arrangement where Lampros Energy not only undertakes marketing activities for the suppliers but also co-ordinates and facilitates the successful closure of the transaction in consideration for a share in the net profit generated from the transaction.
The marketing arrangement may be on an exclusive or non-exclusive basis. Similarly, the marketing arrangement may be limited to specific geographical regions/territories or remain unrestricted worldwide.
Commodity Sourcing
Sourcing of commodities constitutes the crux of our current business operations. On an ongoing basis, Lampros Energy receives procurement requests regarding various import requirements of some of the major Indian and Chinese companies. We focus on only those commodity sourcing transactions which involve procurement of large volumes and enable direct communication and interaction with the buyer or an authorized agent or representative of the buyer. The proximity on the buy side of the transaction helps us obtain a thorough understanding of the nuances of the buyer’s requirements, including pricing and other commercial sensitivities. We leverage our extensive network of associates and affiliates located around the globe to service the procurement requests in a timely and efficient manner in consideration of an appropriate pre-agreed compensation. All offers, presented to the buyers in response to their procurement requests, are subjected to a thorough due diligence to ensure that there is no undue delay in closing the transaction if the commercial terms are to the buyers’ satisfaction.
Commodity Trading
Our strength and expertise lies in developing and fine-tuning strategies to effectively employ arbitrage for concluding viable trading transactions for different kinds of commodities. We are in the process of setting up a highly lucrative fuel trading programme with the financial support of our capital partners. We are also looking to collaborate with interested financial partners for operationalizing a highly profitable trading programme for Petroluem Coke. Our long term goal is to develop financial self-sufficiency to establish a full-fledged trading desk and creation of an online marketplace with specialization in a selective pool of commodities.