IndianOil Plans 24X7 eateries
New Delhi   28-Nov-2007
IndianOil plans to open eateries at its petrol-filling stations located near college hostels to grab a share of the late night snacks market."Hostel students, who normally study for long hours, crave for a late night snack and don't get a good eating place to go to. It is this space that we are eyeing," IndianOil director (business development) BM Bansal told MailL Today. "The petrol pump sites will fulfill this demand and also stock goods like toothpaste, soaps and pens which the academic community can buy at a late hour," he added. Bansal, an IIT-Delhi alumnus recalls his own student days when they had to visit roadside dhabas for a late-night bite. IndianOil is planning eating joints at its petrol pumps near Delhi University, JNU, IIT and several colleges in south Delhi. The concept may later spread to some residential colonies as well where grocery goods could be sold. Currently, IndianOil has about 50 to 60 convene stores at its bigger petrol pumps near residential areas. The volume of business that these stores generate is about Rs 5 to 6 crore, and these are seen mainly as add-ons for the customers rather than as a pure profit-making venture. However, IndianOil is also eyeing retail business in a bigger way like other leading business houses such as Reliance and the Aditya Birla Group. The oil giant has commissioned Technopak as consultants for its retail plans and is currently studying the report. IndianOil wants to leverage its strong brand to enter big retail, which could involve taking up entire malls that sell everything under one roof.However, the IndianOil management is also aware that while it has a nationwide retail network of fuel outlets, it does not have the experience to run big retail stores. Bansal said the company was looking at the joint venture route as a possible way for implementing its plans. Bharat Petroleum Corporation Ltd (BPCL), which had taken the lead in new marketing initiatives among the public sector companies, has already set up 400 convenio stores. BPCL chairman and managing director Ashok Sinha told Mail Today: "We have reached our limit and will be opening only an odd store here and there. The company does not have any major expansion plans." Sinha said: "The convenio stores have been put up for the convenience of our customers who buy petrol and diesel. We do not make big profits on the sale of non-fuel retail goods as the margin is a mere 4 to 5 per cent." He disclosed that BPCL had an annual turnover of about Rs 200 crore from its convenience stores and the net profit worked out to Rs 10 crore. However, BPCL would open restaurants at some of its petrol pumps on highways for the convenience of travelers on the lines of the deluxe dhabas of Hindustan Petroleum Corporation.