• MAY 28, 2001

BPCL: Retail foray

Bharat Petroleum (BPCL) stock has shot up over the last six months by 150% from Rs 80 to Rs 202. This could be mainly due to the meltdown in the TMT sector with participants re-allocating portfolio funds.

The company is planning a strong retail foray at its service stations across the country. Initially, the company plans to focus on the metros namely, Delhi, Mumbai and Chennai and is targeting to establish 40 stores. At a latter date BPCL will attempt a national foray augmenting the chain to 300 such stores.

In & Out Stores, the brand name of the chain, will attempt to provide a wide range of services. BPCL is reported to have signed up with leading national and international brands to offer these services.

Retail push
Partner Product
Kotak Securities Financial services
Kodak Photo-shop
Sony Music Music corner
SaReGaMa India
Qwiky's Coffee retailer
Pepsi Aerated drinks
HLL Kwality Walls
Stanchart, ICICI, UTI ATM services
DHL Courier
Go4ticketing.com ticket vending
ITC Greeting cards
Canon fax, copying etc.

The company has a 4,489 retail outlets all over India. The setting up of convenience stores involves an estimated capex of Rs 0.7 m per store. The company is targeting daily sales of Rs 25,000 - Rs 30,000 from the bigger stores and Rs 8,000 - 10,000 from smaller ones. At these rates non-fuel sales will represent an insignificant amount compared to the fuel sales generated by the company.

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