IndiaRetailBiz

Indian Oil Corporation (IOC), the country’s largest oil refining and marketing company, ranked 135th on Fortune 500 list, with an annual turnover of 2.20 lakh crore (over US$ 55 billion) in 2006-07, is targeting rural areas for expansion of its retail network.

IOC, which already had a retail distribution network of 16,607 petrol and diesel stations (2006-07), will set up bulk of its 1,600 new retail outlets, in the current year, in rural areas of the country. At least one thousand of these will have Kisan Sewa Kendras (KSKs) attached to them.

IOC’s KSK initiative, which had 1,422 outlets operating by March, 2007, is the largest organised rural retail network of the country. KSKs sell various non-fuel products including farm inputs (fertilisers, pesticides, seeds), household items, stationery and other utility products and services required by rural customers. IOC has planned to increase the number of these KSKs to 5,000 in the next five years (2011-12).

With a view to unlock the real estate value of its outlets in urban areas, IOC has decided to open over 100 small-sized convenient stores entailing an investment of over Rs 200 crore this year. Earlier, IOC had a tie up with Apollo Pharmacy for setting up a retail chain of about 400 pharmacy and convenience goods stores under the “Convenio” brand. Currently some of the “Convenio” stores are run by local/ regional private players.

IOC, for some of its outlets in Mumbai and Delhi, has tied up with Domino’s Pizza and the Future group offer shopping and dining services for customers.

“Non-fuel revenue will contribute significantly to IOC’s turnover in the coming years,” said a senior official of the company.

IOC has recently completed the merger with IBP and has decided to maintain the brand identity of IBP to create more value for IOC products.

Source: Business Standard