K.K. Modi plans 1,000 retail outlets at IndianOil petrol stations
New Delhi   28-Mar-2012

Enthused by the success of its 24x7 retail outlets in New Delhi, the $1-billion (Rs 5,000-crore) K.K. Modi Group plans to open nearly 1,000 such outlets at petrol stations owned by State-promoted IndianOil across the country.

In a major expansion drive to increase market capitalisation to $5 billion (Rs 25,000 crore) by 2015, the Group will set up a chain of six more chemical industries at Dahej in Gujarat where it has so far committed investments of Rs 1,500 crore in the three existing industries.

The Group had earlier roped in Mr Sarthak Behuria, former Chairman of IndianOil, as its President. It signed an agreement with IndianOil two years ago to open convenience stores at its outlets. IOC has nearly 26,000 petrol stations across India.

“We have so far opened 10 retail outlets at IndianOil petrol stations. Now we would be scaling it up to 50 in 2012-13 and 200 in the fiscal thereafter. In all, we are planning to open nearly 1,000 retail outlets in a phased manner, with an estimated investment of Rs 2,500 crore,” Mr K.K. Modi, Chairman, told Business Line here.

The Group is the pioneer in India of the 24x7 convenience outlets – with the brand TwentyFourSeven – which run round the clock in the national capital. These are New Delhi's only organised retail stores in the round-the-clock convenience store format.

Under the agreement, IndianOil would invest around Rs 1 crore per retail outlet and the KK Modi Group's share will be Rs 1.50 crore by way of stocks and logistics, he said.