Essar Oil targets 5,000 fuel retail outlets.
Among the private sector companies, Essar Oil is most bullish on the fuel retailing segment post diesel deregulation.
After setting up 1,500 fuel retail outlets and having 1,400 under implementation, Essar Oil is planning to set up another 2,100 retail outlets, taking the total tally to 5,000 retail outlets. This will make Essar Oil largest private fuel retailer in the country.
'Our retail front is making alot of progress...our target now is to reach 5,000 retail outlets,' said Lalit Kumar Gupta, Managing Director and Cheif Executive Officer, Essar Oil, in a video on the company's website.
Reliance Industries, another private fuel retailer, has 1,400 outlets but only 400 of these are operational.
Essar Oil said it has been doing sales of 1.8 million kilo litres of fuel per month and plans to take it to 3 million kilo litres by the end of this year.
The company had earlier told Business Standard that it is encouraged by the government’s resolve to bring retail diesel prices to market-linked ones.
“On full implementation of diesel deregulation, the network will prove to be a great value booster,” the company had said.
In its expansion drive, Essar has fuel retail outlets under all formats — company owned, company operated (Coco), company owned, dealer operated (Codo) and dealer owned, dealer operated (Dodo). A person aware of Essar’s expansion plans said the company planned 10% of the 3,000 outlets under the CoCo format. At present, of the 1,400 outlets, six are under CoCo.
'Essar has so far invested around Rs 10 crore in CoCo outlets. Going forward, it would like to invest Rs 300-350 crore in these. On an average, a CoCo outlet requires an investment of Rs 1-1.5 crore,' the official added.