The origins of the Prax Group can be traced to a single leased petrol station in Hertfordshire and a bank loan that its founders secured.
A Retiring Owner and a Lease Agreement
Soon after, the couple were introduced to a filling station owner approaching retirement who was looking to sell. Sanjeev and Arani Soosaipillai didn’t have the capital to purchase the site outright, but the owner agreed to lease it to them instead.
The site was in St Albans, Hertfordshire. The leasehold arrangement meant no upfront premium was required; only inventory at cost and an advance on quarterly rent needed to be paid at completion.
Securing £15,000
Running the station required working capital. The couple persuaded their local branch bank manager to lend them £15,000, the maximum sum within his authority to approve.
Running the Business
The operation began in 1999 as a partnership between husband and wife. Sanjeev had resigned from his job about a month earlier, while Arani Kumar Soosaipillai oversaw HR operations and continued working full-time elsewhere.
Expansion Through Personal Sacrifice
State Oil Limited was incorporated in 2000 with a share capital of £2, and the St Albans petrol station was transferred into it the following year. Additional sites followed, with four more petrol stations acquired in 2001. Funding came through a combination of retained earnings, mortgages, and personal loans.
From Retail to Wholesale to International Trading
Revenues during the retail phase (1999–2002) reached £3.8 million, with net equity of £233,000. The business moved into wholesale fuel distribution in 2002 through a new subsidiary, Prax Petroleum Limited. Partnerships with third party oil companies provided the consignment structures and financing that enabled international expansion. Revenues climbed to £75.8 million by 2007 and £420 million by 2011.
Full trading independence arrived in 2012, when bilateral credit lines from foreign financing institutions allowed Prax to purchase cargoes directly without relying on supplier financing. Revenues that year stood at £541 million.
A 25-Year Partnership
The company marked its 25th anniversary in September 2024. At that point, it employed 1,450 people, held gross assets of $2.3 billion and net assets of $604 million, and operated across crude oil supply, petroleum product storage, refining, and distribution.
Where Dreams Meet Discipline
The journey of Sanjeev Soosaipillai and Arani sounds like it was a dream come true. In many ways it was. But the Prax Group wasn’t built on dreams alone. The reality came from relentless focus and persistent effort.
