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Fuel retailers look at revamp after entry of Rosneft

In addition to the revamp, BPCL is also offering discounts at some company-owned outlets

Amritha Pillay  |  Mumbai 

fuel

The Rosneft-led consortium’s acquisition of Essar Oil’s assets last week, including its network, is keeping state-run oil (OMCs) on their toes to ensure footfalls do not decline.

OMCs are looking at various options, including re-branding outlets, loyalty programmes and extending at company-owned outlets. Bharat Petroleum Corporation Ltd (BPCL), for instance, has a revamp programme under way for its highway outlets. The company is engaging with all stakeholders in a far more effective manner. There will be a change in the look and feel of the outlets. 

“Our quality assurance programme will also go to a completely different level. Besides, many activities are being done on the ground,” executives informed analysts during an earnings call this month.

A executive confirmed a revamp for outlets was under way, but refused to share further details. In addition to the planned revamp, according to industry sources, is also offering at certain outlets to improve footfalls.

Ajay Bansal, president of All India Petroleum Dealers Association, said was not alone. “All three OMCs are working on the visual appeal of their outlets and are also offering at some of company-owned outlets,” Bansal said.

For like Hindustan Petroleum Corporation Ltd (HPCL), rating agency Crisil expects these steps will help retain position. “The company has also undertaken aggressive branding and exercises and has been expanding its network. These initiatives should help maintain the established position,” Crisil said in a note on Of the 59,595 outlets in the country, operates 13,983, 14,412 outlets and Indian Oil Corporation (IOC) 26,212. An email query sent to BPCL, and remained unanswered.

has access to 3,500 outlets in the country, making it the largest private retailer in India. OMCs have been undertaking most of these steps even before the deal was completed. According to analyst reports, state-run OMCs growth rate in has been lower than the industry growth rate during the September quarter, indicating market share lost to private players. Even before Rosneft’s entry, daily changes in and prices also made the market more competitive.

has been prompted to work on its highway outlets due to a decline in volumes, which is being attributed to the increase in competition from both private and public retailers. In addition to the planned revamp, according to industry sources, is offering at certain outlets to improve footfalls. 

“Our share among is 28.81 per cent as against 28.51 per cent last year. In diesel, it is 28.56 per cent as against 28.84 per cent last year,” executives told analysts.

First Published: Tue, August 29 2017. 00:41 IST
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