Petroleum products company Shell India Marketing Pvt Ltd (Shell Marketing) said on Thursday that it would follow the "company-owned retailer-operated" model to set up a network of petrol pumps across the country.

Shell Marketing's managing director Surinderdeep Singh told newspersons that the investments in land and building for setting up a gas station would be made by the company and the running expenses would be borne by the retail franchisee.

"The franchisee will run the petrol station strictly according to the safety and management standards of Shell and will be responsible to maintain the quality benchmark of the company," Singh said.

Shell Marketing opened its first retail outlet in Pune and is planning to open more under its retail strategy. He, however, did not disclose how many outlets the company wants to open in the city or surrounding areas.

"Pune is an important market and we will certainly have a greater presence in the years to come," was all he said.

Singh said the company was now preparing to enter Gujarat and in the process of finding locations in the state's important cities. The number of Shell Marketing's petrol pumps has gone up to 32 by the end of 2006, compared with 22 in December 2005.

Singh said the company would try to reach all the areas where there is a demand. "We intend to reach out to mid-size cities as well as be present alongside the national highways."

"Metros like Mumbai, however, have a dearth of affordable real estate, so will try and invest in greater Mumbai," he said.

The company is currently studying the traffic flow in the country's commercial capital.