IndianOil would get into retail trade in a big way this year, leveraging on its nation-wide network of petrol stations, as it seeks to make non-fuel business a driver of growth, company officials said on Monday.
"Today, we are in the next phase of the evolution of the petroleum retail business, in which we believe, automation and non-fuel businesses will drive our future growth," the company's director (marketing) G C Daga said.
"IndianOil has been relentless in its pursuit of automation and upgradation of its services and facilities at its retail outlets," he said.
Daga said retail consultants Technopak Advisors had been asked to come out with a "detailed strategy" for the company's retail roadmap.
Executive director of the company's retail business A M K Sinha said Technopak Advisors were expected to submit report by next month-end. The company expects foray into retail in a big way in the second half of the current calendar year -- likely in October, he said.
Sinha said the consultants have been asked to study "what should be the business line as far as non-fuel business of IOC is concerned" and also "how synergy can be developed with realty developers".
Daga said the company sees "clear opportunity" in retail by "unlocking value" of its chain of 16,000 petrol pumps across India, including 3,500 belonging to IBP. "We want to step up non-fuel business and also create value for partners".
Officials said once the report was received, the company would decide on the business model and "what to set up and in which petrol station". As of today, IndianOil had some retail initiatives involving some 250-300 petrol stations but they had not been done in a scientific manner, they said.
Daga also said the company planned to set up 100 more auto LPG dispensing outlets in the country in the coming financial year. It currently has 120 such outlets.
He said a plan had been drawn up to automate 1,000 retail outlets of IndianOil and 250 retail outlets of IBP at an investment of Rs 169 crore (Rs 1.69 billion) in the first phase, to be completed by September.
"In the second phase, an investment of Rs 163 crore (Rs 1.63 billion) has been earmarked for automation of another 1,178 petrol stations including 250 of IBP, which will be ready by mid-2008."
On Kisan Seva Kendra retail outlets, Daga said the company had set a target of 1,000 an additional outlets in 2007-08.
