HP launches one-stop smart card

A typical day in the life of a urban vehicle owner would perhaps include a stop at a petrol bunk, a visit to a convenience store, and so on. On the odd occasion, an urgent summon may have to be sent to the mechanic because of a breakdown.

The oil refining and marketing company Hindustan Petroleum hopes to be present in some form or the other at every stop a vehicle owner may make.

HP's aim is being driven by stiff competition in the oil marketing sector and the need to offer a different product to drive its marketing effort. HP's inspiration in this case are service providers in developed markets who load a number of brands on to a single smart card.

HP took a step in this direction on Wednesday with the launch of a smart card in Chennai in association with MyTVS, an integrated car services company. The card will be a co-branded one, promoted by ICICI Bank, which has a tie-up with HP.

The card is similar to a pre-paid telephone card. A customer pays an amount upfront, and avails himself of the service at HP outlets and MyTVS' services for the paid amount. In addition, there is an annual fee of Rs 365, a sum that is lower than similar cards taken separately from both companies.

Initially, the smart card would be largely sold in Tamil Nadu, where MyTVS has a strong presence. Girish Paliath, general manager of T V Sundram Iyengar & Sons, which runs the MyTVS service, said that the smart card would help the company extend the range of its service.

MyTVS has four divisions, but the tie-up with HP would be limited to 24*7 emergency services. Paliath felt the current tie-up would mean that its service could be called up even when there is no emergency.

HP officials, who initiated the tie-up, hope to eventually rope in other service providers into their smart card services. The idea is to offer a range of services their target customer would need in a typical day. A number of services loaded on to a single card would help HP retain their hold on the customer in a competitive market, explained the company's officials.

Their hopes face a challenge at the moment. An HP official explained that few service providers have a true national presence. Many such service providers are powerful regional players, but lack a national presence.