IndianOil plans big retail ops of non-fuels
New Delhi   15-Sep-2007
IndianOil is going the Shell way. The oil marketing company is planning a massive retail operation in non-fuels under a new umbrella brand. In the first phase, the company will cover 2,000 petrol stations, of which 100 will become operational in the next six months. IndianOil is taking this retail route due to increasing losses from sale of fuel, thanks to the subsidised pricing regime in the country. The company has decided to roll out this new revenue stream keeping in mind its huge land bank, which is part of its fuel outlets and the high consumer base. IndianOil has a land bank of 147 million sq ft, with over 10 billion type falls every year. "We believe that we can double the number of footfalls every year given the fact that every car comes with two passengers," an IndianOil official said.The company is hoping to rake in almost 10% of the total revenue from this business. The oil company is planning to divide its 17,000 petrol stations into three zones — urban, rural and highway. The offerings in the retail stations would depend on where the particular station is located. For instance, a rural petro station could house a kisan seva kendra and offer farming equipment, fertiliser, loans while the one on highways could deal with music, books, recreation and rest. The petrol stations in city centres would concentrate on food and grocery. The company has studied similar models followed by other oil companies abroad. Gas stations abroad are not mere fuelling stops. A traveller can pick up his grocery or packed food requirements as he drives down the highway. IndianOil will also need to do some innovative product marketing and diversification with competition picking up," an IndianOil official said. Industry sources said that IndianOil could be replicating Shell's model which has a network of more than 7,500 convenience stores in 47 countries offering a variety of food, drinks and other convenient items.