ONGC ropes in consultant for retail blitz

The Oil and Natural Gas Corporation (ONGC) has appointed a brand consultant for its retail foray, chairman Subir Raha said in Kolkata yesterday.

"We are working with a consultant to work out a detail retail branding strategy. There are four players in the country and four more are in the process of setting up new outlets, including us. We need to create a differentiator in the marketplace. When customer enters any ONGC outlet, he should get a pleasant surprise," Raha said.

The company has got licence for 1,100 outlets from the government. Raha said the first outlet should come up by next financial year.

"The licence has been awarded to ONGC, so company's name will be on the signboard," Raha pointed out.

ONGC has applied for floatation of a separate joint venture company for retailing. Raha said it had asked for setting up a 50:50 JV. "The proposal is with the government. The company is waiting for a response," he noted.

ONGC had earlier planned to set up a flagship outlet in Mangalore since it has now acquired majority stake in MRPL.

THe company's plan gone awry after it found the land chosen for the RO was a disputed property.

This was a setback for the ONGC which had thought of kickstarting the retail operation by this fiscal itself.

Talking about sourcing of lubricants, Raha sais sales of lubes has been declining with improvement of motor engineering.

"Still it is offered as a package with fuel. We will enter into contract with companies for procuring lubes," he noted.

Talking about the investment plan in retail, he pointed out that it would be difficult to put a number on it.

"The investment will be site specific. City properties will be much costlier that the highways," Raha said.