IOC discouraged from entering non-fuel retailing

Indian Oil Corporation’s (IOC) plan to enter non-fuel retailing in a big way appears to be headed for trouble with the government. Even as the company is preparing the blueprint for the proposed foray, a senior official in the Petroleum Ministry has indicated that the government may not approve the company’s plans. M.S. Srinivasan said that the company has more important problems to focus on such as adulteration and retail automation. He pointed out how the government had stopped the marketing companies from the indiscriminate expansion of retail outlets in cities. Sarthak Behuria, chairman and managing director of IOC said there were three possible business models available to IOC: non-fuel retailing at its retail fuel outlets, selling fuel and lubricants at malls by installing dispensers and getting into retailing business in full flow as any other retailer. (August 19, 2006)