IOC to set up 40 retail outlets

Indian Oil Corporation Limited (IOCL), the country's largest oil marketing company plans to set up 40 retail outlets and 25 Kisan Seva Kendras (outlets in rural areas) in Orissa in 2009-10. The new outlets would be set up in areas depending on the commercial viability.

"We have given a recommendation to our head office for opening 40 retail outlets and 25 Kisan Seva Kendras (KSKs) in Orissa in this fiscal", a senior IOCL official told Business Standard.

It may be noted that IOCL went slow in its retail expansion in the state in 2008-09 due to pressure on its margins in the wake of falling prices of crude oil in the international market. In the last fiscal, IOCL opened 7 retail outlets and 15 KSKs in Orissa.

IOCL's retail outlets in the urban areas of Orissa would be set up in areas where there is a sales potential of 30 kilo-litre (KL) per day of petrol and 20 KL of diesel per day. In rural areas, IOCL would open its KSKs in areas with a potential sales volume of 10 KL of petrol per day and 20 KL of diesel per day.

Asked on IOCL's revenue target from its retail operation in Orissa for 2009-10, the official said, the company is yet to set any target for 2009-10 and we are also yet to work out the revenue figure from our Orissa operations in 2008-09.

IOC clocked a revenue of about Rs 8,000 crore from its Orissa operations in 2007-08 which included the sales of petrol, diesel, LPG and kerosene.

On plans to shut down six depots in the state, he said, IOCL would go ahead with closure of the six depots in a phased manner.

These depots are being shut down on safety grounds and the depot at Berhampur has stopped supplying petrol and diesel and these products are now being supplied to south Orissa from the company's depot at Jatni, he added.

IOCL had eight depots in Orissa and apart from Berhampur, the company aimed to shut its depots in Sambalpur, Paradeep, Rourkela, Talcher and Jeypore.

Meanwhile, IOCL was planning to set up a new depot at Jharsuguda in western Orissa at an investment of about Rs 100 crore. The proposed depot would have the capacity of around 60,000 kilo litre (KL). At present, the company was scouting for 35-40 acres of land for this modern depot.