Financial Daily from THE HINDU group of publications
Thursday, Apr 08, 2004

Cross Currency

Group Sites

Corporate - Outlook

IOC plans Rs 3,000-cr investments

Our Bureau

Dr. N.G. Kannan (right), Director (Marketing), Indian Oil Corporation Ltd, with Mr T.L. Jain, Executive Director, Retail Sales, at a press conference in Mumbai on Wednesday. - Shashi Ashiwal

Mumbai , April 7

INDIAN Oil Corporation Ltd has planned investments worth Rs 3,000 crore on retail initiatives in the new financial year.

The company today said it would add another 1,000 petrol bunks to its existing chain of 9,155 outlets thus crossing the 10,000-mark in year 2004-05.

The company will invest Rs 1,348 crore in various retail schemes. Apart from setting up new outlets, it will also invest in a retail visual identity programme to change the look of its outlets and in computerising at least 1,000 outlets in the first phase of automation.

"Last year was a good year for the company where it gained market share and added 1,122 new retail outlets," Dr N.G. Kannan, Director (Marketing) IOC, told reporters today.

The industry has seen growth in sales for the first time in three years. It has registered an overall positive growth of 0.7 per cent, Dr Kannan said.

However, overall per pump monthly sales of petrol and diesel for oil companies fell to 44 kilolitres (49 kl) and 133 kl (150 kl) respectively.

"There was an increase in the number of retail outlets with all oil companies adding to their respective networks. So the average per pump throughput was distributed over a higher number of outlets," he said.

IOC has planned investments of Rs 1,250 crore on LPG infrastructure in the coming year; Rs 258 crore will be spent on operations and the rest on aviation, lubes and consumer sales businesses.

The company is eyeing expansion of its retail business in the overseas market, Dr Kannan said. He said the company's board has given its go-ahead for the acquisition of BP's assets in Malaysia.

Holding back price hikes hurt oil companies: Oil companies have lost close to Rs 360 crore as a result of holding back the price hikes for petrol and diesel in financial year 2003-04, senior IOC officials said. IOC has lost close to Rs 180 crore as a result.

Crude prices globally have gone up substantially in the last one-year, touching $30 per barrel in the recent times. Indian companies have held back price hikes in the election year.

Oil marketing companies have cumulatively lost Rs 1,500 crore because of the restriction on raising prices of LPG and kerosene, both of which are subsidised by the Union Government.

More Stories on : Outlook | Petroleum

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Alden Prepress to expand Chennai operations

BHEL (R&D) bags Rs 18-cr orders
Hetero Drugs may bag Congo order for anti-AIDS drug
Philips plans to sell unit in Kolkata
FDC scouting for global tie-ups
Granules board okays hike in promoters' stake
Bharti raises $100 m through FCCBs
Kerala High Court stays Govt order on renewing Coca-Cola licence
TVS Motor, Union Bank join hands for finance scheme
Anchor Electrical buys out Rider
Deepak Roy to buy out Polychem's IMFL brands
Radico Khaitan acquires bottling plant in AP
Kuoni Travel buys Resnet from Traveljini
NTPC to expedite work on Ramagundam unit
Rallis, EI Dupont sign pact for co-marketing
GM to make India low-cost supply base
BHEL expects construction orders worth Rs 1,000 cr
IOC plans Rs 3,000-cr investments
HM projects 50 pc growth in Lancer sales with Invex
Finolex Pipes plans expansion, bets on agricultural growth
SAIL's RMD iron ore output up 8 pc
Ashok Leyland reports record vehicle sales

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2004, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line