Essar offers food along with petrol

Mumbai: With the dismantling of the administered pricing mechanism in the oil sector from April 2002, a number of oil companies in India are planning to offer value-added services along with petrol. Essar Oil is one such player. Much like Bharat Petroleum Corporation (BPCL), Indian Oil Corporation (IOC), and Hindustan Petroleum Corporation (HPCL), which have already tied up with food retailers for opening outlets at petroleum outlets along state and national highways, Essar has also signed a number of agreements with food and beverage companies to offer added services in its retail chain of petro-product outlets. After Essar announced its plan to launch a retail chain of petrol pumps last fortnight, it has roped in Pepsi, Dominos, McDonalds and Pizza Hut to offer a range of food and beverage options to consumers.

Industry sources say these multinationals will set up convenience stores at the Essar Oil retail outlets and Essar will ultimately be able to create a distinct brand identity in the petro-product retail market with the help of these multinationals. An Essar spokesman confirms that the company has signed an MoU with a number of food multinationals for offering their products at its petrol pumps. Apart from this, Essar plans to introduce other services like ATM and sundry amusement activities for neighbouring areas.

Initially Essar Oils retail outlets will be launched in the western and northern parts of the country, mainly because the Essar refinery is situated in the west and it would be easier to service these markets.

The advantage that Essar plans to have over other oil majors is that it will have all the food outlets under one roof in order to entice customers with a variety of choices that none of the others like BPCL or HPCL can offer. For private sector companies, new to the retail market, development of a retail outlet with the help of added attractions like food outlets is seen as a move to offer value-added services to consumers.