Petro retailer IBP Co Ltd will set up 500 petrol stations during the current fiscal to take its retail strength past 2600, the company's general manager (marketing) K D Makhija said on Wednesday.

"We added 523 petrol stations last year and plan to add another 500 this year to our present strength of 2171 retail outlets," he said at the launch of Amul parlours at IBP outlets in New Delhi.

IBP has tied up with Gujarat Cooperative Milk Marketing Federation -- promoters of Amul -- for selling the cooperative giants' products like ice creams, flavoured milk, sweets and pizzas from its petrol stations.

Stating that the cost of setting up a petrol station varies between Rs 50-70 lakhs (Rs 5-7 million) to Rs 1.5 crore (Rs 15 million), Makhija said the company has commissioned 94 retail outlets in April and May this year.

The company, which sold 46.94 lakh (4.7 million) kilolitres of products in 2002-03, is looking at 10 per cent growth over petrol sales of 780,000 kilolitres and 8-9 per cent growth in diesel sales of 31.4 lakh (3.1 million) kilolitres last year.

Amul products would be available at around 200 IBP petrol stations throughout the country by the year-end, he said adding the company was also in talks with HLL for selling cold tea and coffee at its retail outlets.

Speaking on the occasion, GCMMF general manager S K Panigrahi said his firm was in talks with the Tatas and Reliance for opening similar Amul parlours. "We have already set up an Amul parlour at Infosys in Bangalore."