Indo-Asian News Service
In a bid to expand its presence in the expanding Indian retail market, the state-run oil major Bharat Petroleum Corp Ltd (BPCL) said that the company will invest Rs 6 billion in retail over the next five years.
The BPCL plans to set up about 250 retail outlets called 'Ghar' to sell its fuel 
products. These outlets would also offer customers non-fuel facilities like shopping, entertainment and eateries.
"We are planning to open around 250 outlets, each having a 'dhaba' kind of ambiance, offering shopping and entertainment experience," said Subankar Sen, BPCL's senior manager of allied retail business.
"At present we have 16 such outlets across the country, each with 40 per cent fuel-based business and the reminder comprising non-fuel activities like shopping, entertainment and eateries," Sen added.
"The company is primarily focusing on urban areas, keeping in view the increasing number of people traveling on highways, and travelers becoming more demanding," said the BPCL retail chief. The outlets will mostly be built on highways and land requirement for each unit would be about five acres.
This is in continuation with BPCL's In & Out stores which stock medium-high premium grocery products with efficient visual merchandising. While IOC's retail unit is setting up shop in rural India, BPCL's model seems very practical for a highway-urban scenario.
http://fmcg-marketing.blogspot.com/2007/10/kisan-seva-kendras-ioc.html
Indian Oil Corporation, the country’s largest oil marketing company, has decided to step up its presence in the non-oil retail business. The company is slated to add another 1,000-odd rural marketing outlets or ‘Kisan Seva Kendras’ across the country by March 2008.
Each pump has a shopping mall offering a wide range of products including seeds, fertilisers, pesticides, consumables and banking facilities. The average cost of setting up each such outlet is pegged at Rs 10-12 lakh. IOC has tie-ups with a range of corporates both in FMCG and finance sector for these outlets like, Emami, Dabur, IFCI and ICICI Bank.
IOC, which recently tied up with IRCTC for sale of railway tickets through petrol pumps, has covered 250 outlets by virtue of this tie-up in states like Tamil Nadu, Punjab, Gujarat. It has also decided to add 25-30 oil retail outlets across these states.
To promote its branded fuel XtraPremium (petrol) and XtraMile (diesel), IOC has launched a scheme offering instant gifts for purchase of petrol worth Rs 500 and diesel worth Rs 1,000 across 32 select petrol pumps in the city during the festive period. KSK a one stop center of service(seva) for the farmers at his doorstep making available: Diesel and Petrol with Q&Q Seeds, pesticides,fertilisers and other agri needs Nutan stove, Hurricane lamps Daily needs such as grocery,personal care Stationery for children Tools, auto spares Location specific value additionsKey features: low investment- ranging from Rs. 6 to 9 lacs High returns- a pay back period of 3 to 4 years. Revenue from non fuel sales reach in new markets first mover advantage fast building and retention of new customers above all a value added service to our old rural customers
products. These outlets would also offer customers non-fuel facilities like shopping, entertainment and eateries.
