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BPCL aims to boost non-fuel revenues

Indian state-owned oil company Bharat Petroleum Corp. Ltd. (BPCL) is targeting Rs20 billion (US$464.3 million) in revenues from its non-fuel business. Leveraging the 8,300 fuel outlet it has nationwide, BPCL retails fast moving consumer goods (FMCG), food and banking and financial services, apart from its core business of selling petrol, diesel and lubricants. The company now hopes to increase its non-fuel retail revenue 10 times through six verticals, namely, convenience stores, banking and financial services, food courts, entertainment, bill payment, and travel. It now plans to take the number of outlets to 1,000 by 2010-11, and increase the revenue from this vertical to Rs13 billion (US$301.8 million) from Rs1.3 billion (US$30.2 million) now. S. Krishnamurthi, BPCL’s executive director (retail) said around 230 petrol bunks house automatic teller machines (ATM). We plan to have 200 ‘dhaba’ format outlets and 60 food courts by 2010-11,” Krishnamurthi said. Under the entertainment vertical BPCL will shortly open 120 seat theatres in two large petrol bunks in Gujarat. Additionally, the company has tied up with Hero Honda and Tata Motors to install their service outlets at select BPCL stations. Another initiative, Beyond LPG, leverages BPCL’s liquefied petroleum gas (LPG) dealer network to sell products ranging from tea to consumer durables. (July 3, 2008)<BR></P>