India may not have joined hands with the coalition forces to effect a regime change in Iraq, but local companies are certainly hoping for a slice of the reconstruction activities that will follow the war.

Expectations are so high that even oil retailing companies like Bharat Petroleum Corporation Ltd are hoping to ride piggyback on the general surge in the economy after the war.

"We expect Indians to play an important role in the reconstruction of Iraq. If that pushes economic growth, consumer spending will increase significantly, leading to higher sales of petroleum products," S Radhakrishnan, director (marketing) of BPCL said.

He said fuel consumption should grow 5-6 per cent in 2003-04, compared to around 3.5 per cent in 2002-03.

"If the Iraq factor is included, consumption of fuel will go up 5-6 per cent," he added. In 2002-03, BPCL sold 20 million tonnes of petroleum products, 7 per cent higher than in 2001-02.

Radhakrishnan said the new retail initiatives undertaken by the company would help it perform even better in this financial year.

BPCL would bring in more retail outlets under its 'Pure for Sure' scheme. It has 1,600 outlets under the scheme at present and plans to raise it to 2,200 by the end of 2004. "We want to sell 70-75 per cent of our throughput at these outlets," he added.

The company is also planning to strengthen its non-fuel retail activities by adding 150 'In & Out' convenience stores by the year-end.

Studies were being conducted with the help of dealers in various regions to work out the right product mix, company officials said.

BPCL has 48,000 outlets in the country, with 145 new ones added in 2002-03. However, the company is facing a problem of visibility because the petroleum ministry is yet to come out with strategy on dealer selection.