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Developing INA’s market leadership

Developing INA’s market leadership

Since MOL took control of the company in 2009, the modernization of INA’s Croatian retail network has also been accelerated. INA succeeded in reversing the decline in its market share both in Croatia and in Bosnia, and successfully captured other markets through increasing exports.

The economic crisis created a challenging business environment for oil refining and retail in Croatia and Europe. In 2012 in Croatia the diesel demand was lower by 10% than in 2008, while the contraction for gasoline was 14%. Fuel oil demand practically vanished from the market. Overall, the market has shrunk by 28%.

Overall the demand in INA’s key markets, such as Croatia, Slovenia and Bosnia, decreased significantly, more-or-less equivalent to 70% of Sisak’s nominal capacity.

Since taking over management control of INA in 2009, the company has responded firmly to the changes in market dynamics, reversed the decline in its market share both in Croatia and in Bosnia and successfully captured other markets through increasing exports. In Croatia, INA boosted its market share by more than 5 percent to above 70% in the last two years – high market share in any open market by any player. In 2012, while the market was still declining, INA even managed to increase its motor fuel sales both in Croatia and overall.

INA aims to maintain its strong market share in the increasingly competitive Croatian regional markets. To meet this challenge, INA has taken several important steps under MOL’s leadership:

  • All necessary investments needed to produce EURO V quality fuels were carried out;
  • INA also introduced premium fuel grades with additives;
  • Since 2003, twice as much was invested in INA’s filling stations compared to the prior 10 years: retail investments in 2012 increased by 116% compared to 2011, reaching HRK 229 million (EUR 30 million);
  • The modernization of INA’s Croatian retail network was accelerated, with more than 160 stations already modernized in the country in the past years, far more than any competitor in Croatia or in the broader region.

At the end of 2012 INA’s retail network consisted of 396 filling stations in Croatia, 45 in Bosnia and Herzegovina, six in Slovenia and one in Montenegro.