BPCL to foray into bottled water business

Bharat Petroleum Corporation (BPCL), Indias second largest oil marketing company, plans to diversify into bottled water and direct to home (DTH) services in an attempt to boost its profits. The company reported a 91% decline in its fourth quarter net profit as it was forced to sell fuel below the prevailing market price. The company is seeking the approval of shareholders, through a postal ballot, for the new line of business. Our existing infrastructure in bottling and distribution gives us an edge to enter into this business. However, we need to acquire technology and lay infrastructure such as purifying and distilling plants,” said a company source who did not wish to be identified. The bottled industry is witnessing increased competition, with global cola giants, PepsiCo and Coca-Cola Company slugging it out with local players including industrialist Vijay Mallya’s Kingfisher. According to PriceWaterhouse Coopers, the DTH homes are estimated to increase from 4 million in 2007 to 25 million by 2012. (July 19, 2008)