IOC revving up for retail push

Mumbai: Indian Oil Corporation is looking to undertake a retail push in the coming fiscal year.

According to reports, a around Rs1400 crore has been earmarked for retail initiatives during the coming fiscal.

IOC will also soon commission its first hydrogen-compressed natural gas (HCNG) outlet, sometime around the last quarter of 2008-09. HCNG has a 10 per cent hydrogen component in CNG, and will be a 'green fuel'. This outlet will also serve test marketing purposes to help assimilate market reactions before rolling out the initiative on a larger scale. IOC is also looking to expand its LPG network to around 200 before the start of the next fiscal, as part of existing outlets dealing in petrol and diesel.

IOC is also planning to take on some brand building initiatives for the IBP brand, which merged with it. The IBP network has around 7,500 fuel stations, which continue to fly IBP colours. The coming fiscal will see upgrades to the IBP network in terms of automated dispensing units.

IOC aims its initiatives in Auto LPG will provide alternatives to the use of domestic cylinders in cars, which is prohibited by law, in addition to the fuel being more environmentally friendly and cost effective than petrol. Two import facilities are coming up for IOC in Chennai and Kochi. IOC is reported to have a 47 per cent share of the Auto LPG market.

Additionally, the company is also evaluating an increase in the rural retail network of its 'Kisan Seva Kendras', which presently has around 1,800 fuel stations, and another 1,000 are planned at a projected outlay of Rs100 crore.