Fuel stations to offer one-stop shopping

If you are pressed for time, you could eat, shop, as well as service your car, or fill up diesel or petrol.

Fuel stations operated by companies like Hindustan Petroleum Corporation (HPCL) and Indian Oil Corporation (IOC) are increasingly looking at co-branding and space-sharing to boost revenues.

The idea is to offer one-stop-shopping experience for customers and get them to make regular purchases at fixed places like a fuel station.

Indian Oil Corporation has signed a collaboration agreement with Kishore Biyani's Future Group to set up smaller-formats of Big Bazaar stores in their petrol pumps.

"Under this agreement, wherever the Future Group sets up new malls, IOC could be offered space to set up a petrol pump. Likewise, whenever we set up a new petrol pump anywhere in India, we would offer space to the Future Group to perhaps set up a Big Bazaar food court, or its apparel store or build 2-3-storied smaller-format mall at IOC petrol pumps," said G C Daga, director-marketing of IOC.

The Future Group and IOC collaborative presence would initially come up in the outskirts, as big mall developers find cities hard-pressed for readily available space.

IOC has also tied-up with the Ansal group, where IOC could be offered space for building petrol stations wherever the group builds buildings or malls.

"This kind of collaboration is especially helpful for people who are pressed for time. If daily essentials are available under one roof, not only is it convenient for the consumers but is a good business opportunity for companies as revenues automatically go up," said N Srikumar, general manager, corporate communication and branding of IOC.

Recently, Hindustan Petroleum Corporation Ltd (HPCL) and Gitanjali Gems Limited signed an agreement on co-branding to boost revenues.

As the first step in this alliance, Gitanjali Gems set up an exclusive outlet for its Sangini brand at an HPCL petrol pump in Kolkata. Elaborating the opportunity, K S Rekhi, chief regional manager for retail at HPCL, claimed, "Every second HPCL customer is a Sangini diamonds customer.

So, if we are looking at a one-stop-shopping opportunity for our customers, the brand fit is perfect." HPCL petrol pumps also accommodate other brands like Cafe Coffee Day, Baskin Robbins, Subway, Crossword, ICICI credit cards, etc., at select locations.

HPCL petrol pumps in western and southern India also accommodate McDonalds. HPCL too, is expecting sales to grow by 30 per cent. "We sell 200 kilolitre (kl) of petrol and 500 kl of diesel at an average pump every month.

With such exclusive opportunities at our petrol pumps, we are expecting sales to grow by 30 per cent," said Rekhi.