The Hindu Business Line : BPCL to set up 400 `strategic outlets' next year

Mr. S. Krishnamurti, Executive Director (retail), BPCL, flanked by Mr S. Varadarajan (right), General Manager, and Mr Kurian P. Chandy, Deputy General Manager, at a press conference in Chennai on Wednesday. - Shaju John

Chennai , Feb. 23

BHARAT Petroleum Corporation Ltd intends to spend around Rs 200 crore to set up 400-odd "strategic outlets" next year.

These are petro products vending stations located in places where the company is "not properly represented," Mr S. Krishnamurthi, Executive Director (Retail), BPCL, told a press conference here on Wednesday.

During the year, BPCL added around 700 outlets to its network, against 800 last year.

It spent about Rs 300 crore in setting up these 1,500-odd outlets, Mr Krishnamurthi said.

At present, BPCL has around 6,000 retail outlets, most of them are dealer-owned.

About 4,000 of these have been endorsed by the company, under an assurance programme called `Pure for Sure'. At these outlets, BPCL guarantees the quality and correctness of the quantity of fuel. Over 80 per cent of the company's sales of petrol and diesel come from these 4,000 outlets.

The challenge before BPCL is to enhance sales through the other 2,000 outlets. Mr Krishnamurthi said that the company is trying to persuade the dealer to upgrade his facilities, but if he is unable to do it, the dealership could be cancelled.

BPCL expects to sell 2.5 million tonnes of petrol and 9 million tonnes of diesel this year. Branded petrol (Speed) accounts for 16 per cent of petrol sales.

Outlining the company's plans for the next year, Mr Krishnamurthi said that the number of outlets that have `In and Out' convenience stores would be increased to 500 from 300.

At each `In and Out' shop, sales range between Rs 15,000 and Rs 18,000 a day.

Secondly, the company intends to upgrade 300 of its 600 authorised service stations into `vehicle care centres'.

These centres would undertake repairs of upmarket vehicles and the company is in talks with various vehicle manufacturers for this.

Thirdly, BPCL intends to go rural. It plans to set up 1,000 small-sized outlets in rural areas, where tractor owners today have to travel about 15 km to get diesel.

Fourthly, the company will increase the number of `destination retail outlets'— outlets that have multiple facilities such as food courts, games and even swimming pools.

Mr Krishnamurthi said sales of petro products through the company's Petro Card had crossed Rs 3,000-crore this year.

Answering a question, he said that a decision on the company's entry into Sri Lanka would be announced soon.

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