IBP to sell Indian Oil's branded fuel

In a bid to retain high value customers in the competitive auto fuel market,. IBP Ltd has decided to sell branded fuel "" premium and diesel super "" of Indian Oil Corporation (IOC) from its own retail outlets (ROs)

This is the first instance when any of the four oil marketing majors would be distributing other's product from its ROs. "Our objective is to give best possible service to consumer.

IOC products would be sold through those outlets which do not at present sell IBP's own branded fuel, Josh (MS) and Shakti (HSD). This integration will start soon," R S Guha, director (marketing) of IBP said.

The arrangement is possible since IBP is a IOC group company. It would increase combined sales of branded fuels of IOC as a group. IBP will source IOC's branded products where it does not have storage terminals.

IBP has storage facilities in only 16 locations. They are important since additives, the main ingredient used in branded fuels, are mixed at the storage point. In comparison, IOC has storage facilities all over India.

Presently, IBP sells Josh from 51 outlets and Shakti from 37 outlets. After the integration, branded MS (motor spirit) would be sold from 272 ROs and branded HSD (high speed diesel) from 221 ROs.

In terms of share, Josh and Shakti contribute 8 per cent of pump throughput in ROs where they are available. Guha said the effort was to fully synergise the operation of both oil majors.

There has been integration in many front - storage, transportation - but this was the first instance of public interface of internal co-ordination.