HPCL to shut ailing retail fuel outlets

Hindustan Petroleum Corporation Ltd (HPCL) is resorting to rationalisation of its retail outlets. The company plans to invest Rs 800 crore in setting up of 700 plus outlets during the current year.

It will shut down those retail outlets which are not performing well. "We will be following a qualitative approach. Some outlets have to be relocated to new locations since obstructions such as flyovers have come up which is affecting their sales," said a senior executive.

The company has about 3,300 outlets till last year and has been aggressively pushing its high end Club HP brand with the total number of outlets under it being 1,280 as on March 2004.

HPCL which marketed 10.52 million tonne of retail products during 2003-04 saw its market share coming down marginally to 22.53 per cent from 22.89 per cent the previous year.

Market sales with inclusion of exports on the other hand witnessed an improvement with Rs 56,332.57 crore during the year as against Rs 52,698.99 crore in the previous year.

The company is focusing at rural retail outlets through setting up of low budget outlets. Called Hamara Pumps, they involve an investment of only Rs 12-15 lakh a outlet. "About 200 such outlets have been set up with 300 more to be added this year," said the executive.

Hamara Pumps unlike urban outlets do not offer a convenio store environment but have facilities such as cold drink counter, and fertiliser and spare parts outlets.

HPCL has already tied up with fertiliser cooperative Kribhco for fertiliser sales at these outlets.