IOC ties up with major retailer

Indian Oil Corporation (IOC) is eyeing an annual turnover of Rs 20 billion from non-fuel retail in five years, reports Business Standard.
IOC currently has a non-fuel retail turnover of Rs 40 million.

IOC will tie up with major retailers and set up convenience stores, super markets and other formats, depending on the real estate it has at its outlets, and will follow a revenue sharing model. The company is seriously looking at the non-fuel business in a big way. It is talking to some of the leading retailers in the country and the tie-ups will be in place by January 2008.

In the urban areas, the stores will come in two sizes, 300 to 700 sq feet and 700 to 1,000 sq feet. They will be between 1,000 sq feet and 1,500 sq feet on highways. Margins in food and groceries or any other forms of retailing are higher than in fuel retailing, which is why companies are getting into this sector.

Shares of IOC gained Rs 0.70, or 0.18%, to end at Rs 389.8. The total volume of shares traded was 20,689 at the BSE (Tuesday).