Indian Oil Corporation said on Thursday that it would spend Rs 2,400 crore (Rs 24 billion) on overhauling its marketing operations and that includes setting up 1,000 retail outlets by fiscal end to "saturate the market and dissuade other players from entering it."
"We have set up around 552 retail outlets by this October and would take the figure to 1,000 by the fiscal end," IOC director (marketing) N G Kannan told reporters in Mumbai.
As a marketing strategy, IOC wants to saturate the market, which would act as an entry barrier for other players he said, adding, out of the Rs 2,400 crore for the current fiscal, Rs 650 crore (Rs 6.5 billion) would be spent on LPG, Rs 1,400 crore (Rs 14 billion) on general sales, Rs 250 crore (Rs 2.5 billion) on strengthening the infrastructure and Rs 100 crore (Rs 1 billion) on others.
The 1,000 outlets, which would be set up at a cost of Rs 600 crore (Rs 6 billion) would be the "brand ambassadors" of the company and known as Indian Oil Xtra outlets, he said adding, Rs 400 crore (Rs 4 billion) would be spent for offering other services at these retail outlets.
The retail outlets would include about 125 flagship highway retail outlets, which would be spread across 2.7 acres offering various facilities, Kannan said.
The company expects to sell about 2000-3000 kilolitres of fuel at these outlets, which would be mostly set up at the new highways under the Golden Quadrilateral project.
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