Indian Oil Corporation (IOC) has chalked out a Rs 3,000 crore investment for marketing in the next one year. A major part of the funds — Rs 1,350 crore — would be utilised for setting up additional 1,000 retail outlets (RO).
IOC director (marketing) Dr NG Kannan said that the company’s mission is to cross the 10,000 RO mark. The company presently has 8,820 RO. The oil major is also giving a new look to its ROs — the new outlets would don corporate orange and blue colours, said Dr Kannan.
In order to face competition, especially in view of its falling market share since 1999, the company is aggressive on its marketing front. “We are trying to make a professional marketing company,” said Dr Kannan. The company has improved sales in the last one year at 46.2 million metric tonne (MMT) as compared to 45 MMT in the previous year. The number of RO commissioned last one year were 1,122 as compared to 343 in the previous year. The other investments include Rs 1,248 crore for liquefied petroleum gas (LPG), Rs 258 crore in operations and Rs 144 crore in aviation and depots. While oil companies are adding new ROs, the throughput from the ROs is falling. However, IOC’s throughput fall has been lower than the industry standards. Dr Kannan said that industry throughput fall in petrol is 11.2 per cent while IOC reported a 7.2 per cent fall. The fall in industry throughput for diesel was at 11.9 per cent while IOC was able to arrest it at 9.4 per cent.
However, IOC’s subsidiary was the worst hit, reporting 18.4 per cent decline in kerosene throughput and 20.7 per cent decline in diesel. As a result, both the companies have decided to work in tandem on the marketing front. Naphtha has been another product for concern for the company. IOC reported a 10 per cent fall (4,000 tonne) in naphtha sales in the first half of last year. He added that another 1.9 (MMT) would be replaced by Liquefied Natural Gas (LNG). On its overseas front, IOC plans to commission 110 ROs in Mauritius, of which 10 would be commissioned in the first phase.