IOC may foray into non-fuel retail

Oil retail major IndianOil is looking at a major push into the non-fuel retail business, hoping to cash in on the country's growing organised retail market.

The venture will seek to exploit the company's extensive network and presence across India.

At present under consideration, the foray is yet to be approved by the company's board; though it is likely that a special purpose vehicle may be set up for the purpose.

"We are open to setting up a separate vehicle for the retail foray," IndianOil Chairman and MD Sarthak Behuria told reporters here.

The retail venture will be different from the existing "Convenio" range of small retail vends located in some of the 12,000-odd IndianOil filling stations.

While details are not available yet, IndianOil may tie up with a major retail chain, and open co-branded petrol pump-cum-retail plazas. "The idea is to enhance our non-fuel sales, and bridge some of the losses," Behuria said.

The company is also planning to set up petrol pumps at multiplexes and hyper-markets to improve its auto fuel sales.

Details of these retail outlets will be finalised jointly with mall developers, and the board's approval will be sought separately for specific cases.