Feature
Issue No. 39 - February/March 2008
Lovato‘s dual strategy
Automotive aftermarket supplier Lovato Autogas has topped up favourable legislation with its own innovation to make great growth strides in the past three years.
Diesel/Gas Australia, Lovato’s own product, has won export markets very quickly.
“This product has grown from nothing to 40% of the company’s sales and close to 60% of its GP,” says Lovato GM, Kingsley Songer.
“It was invented by Lovato and currently has a patent pending. With over 1700 units sold in the past three years it is the market leader.
“Export sales are taking place into New Zealand, the UK, Turkey and India with expansion into four or five other markets to happen in 2008.”
Kingsley says the Australian Government’s LPG Rebate scheme set up in August 2006 saw sales of petrol LPG products double in the next 12 months.
On strength of that rise, Lovato expanded into WA, opening its own warehouse complex.
“WA now accounts for 25% of the Company’s total volume,” Kingsley says.
While the new diesel/gas product has been the fastest growing segment of Lovato’s business in both sales and GP the firm’s growth stems from general demand for Autogas equipment.
“This initially meant a shortfall in supply and a demand that couldn’t be satisfied,” Kingsley says. “Although this demand has now been largely satisfied, demand continues to be strong.
“Initially we had to think on our feet to ensure we made the most of the opportunity. Since that time we have planned the growth and expansion of our business.
“Specific planning is always an advantage and I feel a necessary part of any business (large or small).
“I find that initial plan is just the start; for it to work effectively it must be continually updated.
“The next part of our plan is the expansion of the export market.” Learning from its rapid growth, Kingsley is looking at the opportunities increased sales, ...
